Identifying Gold's Pullback Setup, Catching The Bounce
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Just recently we had a beautiful pullback setup in gold after its initial breakout to the upside. The zone came in between 2352.80-2356.50, which included a .618 retracement, a 50% retracement, along with two 100% price projections of prior swings.
The market pulled back directly into the zone on 7/9 and held. We saw multiple buy triggers against that area and so far have seen a $74.40 rally from that support.
It is also possible that in the bigger picture we could see a rally towards the 2524 area. We will be watching for new entries on pullbacks also. The definition of risk after the entry was below the low end of the price cluster at the 2352.80 area.
