I haven't written in a while because nothing of note has happened in any market except trend continuation.

Gold, however, recently bounced off its 78% fibonacci retracement level from the 2016 Baby bull market. AS such, I thought it would be a good idea to take notice of its movements again. We have retraced to a massively pivotal moment for the commodities sector.

Take some time to observe this chart. I have mapped 5 different fibonacci tools which ALL converge around the red circle.

Starting from left to right:

1. The 2011-2016 bear market's 38% upward retracement is at the 2016 high (green line upper left).
2. The 2011-2016 bear market's 38% fibonacci FAN retracement is the orange diagonal line coming in from the upper left corner.
3. The 2016 Bull market's 50% Fibonacci retracement is at about 1210.
4. The 2016 Bearish retracement 38% Fibonacci Retracement is at about 1220.
   3 + 4. This zone 1210-1220 is long term support/resistance on the yearly chart. This can be more powerful than fibs. Combined with them, this zone is a make or break for the commodity bull/bear market decision here.
5. The 2016 Bear Retracement Fibonacci Fan levels drop from left to lower right.

All 5 Fibonacci Tools converge on the 1210-1220 S/R zone.

Best case scenario:

Gold powers through this zone up to its 50% downward retracement level of 1250. Here, it should drop down and bounce off the zone again. This will be the ideal entry time to go long with your best miners and JNUG. (Let's hope we can hit 1250 before the Chinese New Year, during which Gold will get smashed a bit. The following week is an FOMC decision and jobs report week, which could result in a big Gold move.)

Worst case scenario:

Gold gets devastated by this zone and plummets down back to 1183 Support level. This is key support and a 38% retracement of the most recent upward move. If this level does not hold, I'll look to sell all leverage and miners and go short with jdst.

Go forth and make money. Feel free to send me some bitcoins if you find this useful and make more money.

-JTtheAT

Also, if you are interested in health, fitness, sports medicine, or nutrition coaching, that is what I do for a living. Just find me on social medias. Cheers.