All intraday and daily support is holding on gold, but it can be helpful to "zoom in" and focus on a shorter term chart in order to recognize patterns. If you check out my October articles on this contract, you'll see that I was originally aiming for a target zone in the 1704 area. Before that could be fulfilled, a Gartley support pattern formed from October 17th to 20th. Here's a 60 minute chart:

Click on image to enlarge!

That’s the “zig zag” drawn with the red trendlines to the left of the chart. One of the advantages of these patterns is that should the support hold, the targets are calculated using the entire compound swing. On October 27th we hit the 1.618 target at 1755 and started to pull back.

Once again all support is holding on this pullback and we’re now looking to the next target at 1773.90. Intervening resistance has broken with the exception of the prior swing high, but the probability is in favor of more upside instead of a double top. Momentum indicators also favor longs. I’d like to see the 50 CCI break above +100. It’s currently at 77 and once it breaks above +100 it should be relatively smooth sailing to the target. Should it break back below +100 we’d have an indication that upside momentum is temporarily compromised. That’s a good time to exit depending on your trading timeframe.

For more from Mark including his “Chart of the Day”, visit MJBraun.net.