An old trader adage usually goes something like: "Look at the bigger picture." Translation: Zoom out to larger time frames to make sense of the smaller ones.
Here, what gold has been doing for the past several months (well, really since September of 2014), makes total sense if you zoom out to the Monthly, where long-term Fibonaccis tell the story of why price has been bopping around in here since that time between 1086 and 1283 -- both are "uber" long-term Fib lines, off of which price has reacted (somewhat sloppily or otherwise) in the past several months.
You can use these levels to initiate long/short positions with stops placed strategically above or below them to maximize the risk/reward profile of the trade. Here, however, and since the long-term downtrend remains intact, my tendency would be to short on strength/test of that Monthly .618 at 1283 if given the opportunity again to do so (my preference would be to that with GLD short call verticals).
Here, what gold has been doing for the past several months (well, really since September of 2014), makes total sense if you zoom out to the Monthly, where long-term Fibonaccis tell the story of why price has been bopping around in here since that time between 1086 and 1283 -- both are "uber" long-term Fib lines, off of which price has reacted (somewhat sloppily or otherwise) in the past several months.
You can use these levels to initiate long/short positions with stops placed strategically above or below them to maximize the risk/reward profile of the trade. Here, however, and since the long-term downtrend remains intact, my tendency would be to short on strength/test of that Monthly .618 at 1283 if given the opportunity again to do so (my preference would be to that with GLD short call verticals).