For an overview on Gold, it’s good to start with a higher timeframe chart in order to see the bigger picture. Here’s a monthly GC chart:

Click on image to enlarge!

This has made a major long term upside target, and while there may be more of a rally in store, it’s the perfect place to expect a pullback. Fibonacci timing factors also pointed to an amplification in price resistance during July. We’ve had these timing factors in place since last year.

Stepping down to the daily GC chart:

Click on image to enlarge!

Once we saw a close below the .786 retracement from the swing into the high, the focus lands on the target shown at 1145. (Since this is in the process of rolling, I’m showing the December contract, but we’ve been working with near identical price levels in the August contract until now.) Until that target is met, the pattern to downside must be considered incomplete. On any attempt at a rally, the resistance factors shown must be taken seriously; considered as stronger than usual since this pattern should complete to downside before finding longer lasting support.

After that break of the .786, the next bounce gave a perfect intraday setup for a short side entry. Here it is on the YG (mini gold) contract, 60 minute chart:

Click on image to enlarge!

The pattern shown is a Gartley corrective rally. The price projections for this resistance were in place on Wednesday July 21st, and we saw a hold at resistance last Friday, the 23rd. This actually made the 1.618 target from the entire compound low to high swing, which is where it’s currently holding. The trigger on this chart was when all CCI periods crossed below the zero line on Friday, but any number of momentum based triggers could have been used once the pattern was clearly understood and visibly holding.

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