Here’s a daily chart of December Gold showing Fibonacci support and resistance:

Click on image to enlarge!

I’ve enclosed bar counts in the red rectangle at the top of the chart. Note that each corrective rally since the major high on that chart has lasted for 3 to 5 days. Yesterday was bar number 5 in the current rally, so if this pattern is going to continue we’d expect to see the decline resume either today or tomorrow at the latest. This is a pretty tight pattern and it can’t last forever. Usually this sort of repeating timing resistance lasts for 3 to 4 cycles, and we’re asking for it to occur for a fifth time now. But with outstanding downside targets overlapping at 1146, there may indeed be more downside in store. The resistance at 1209 also shows that the rhythm of the price decline hasn’t been violated either, so in effect we’re at the point where time and price symmetry will point the way. Either the decline will resume, or if we continue to rally through tomorrow’s session, the pattern will be disrupted. This would call for an upside acceleration instead. Look for a hold or break of 1209 as key!

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