Last week, when I wrote about the Gartley support pattern on Gold, I mentioned that there was also Fibonacci Timing support in play at the relevant price support levels. Here’s a chart showing the timing factors I was referring to:

Click on image to enlarge!

By counting the number of daily bars between prior pivots and projecting forward using key Fibonacci ratios, we were able to find a tight area of projections where a decline would be likely to terminate. Combined with a specific price support pattern, the Gartley, this gave us a high probability upside trade.

Since the Gartley has met the initial upside target, it’s important to check for timing resistance factors which may get in the way of continued upside potential. We’ll use the same timing techniques, but on larger swings since the trend is to upside. It takes stronger ratios from larger swings to get in the way of a trending move. Also, the emphasis will be on timing the duration of prior rallies and projecting these bar counts from the start of the present rally:

Click on image to enlarge!

While this zone is not grouped quite as tightly as the timing support was at the Gartley low, there are significant Fibonacci ratios involved, pointing to the strong possibility of a pullback from this point. The emphasis is on Today, Thursday April 15th, through Monday April 19th. Swing traders should tighten stops if maintaining a long position. We’re actually using intraday charts to project key support levels and placing stops immediately below, after scaling out of a partial position at the Gartley target.

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