Gold in ABC Bearish Pattern
January 12, 2010 7:22 PM

Gold may be ready to retrace? Gold has ABC Bearish pattern and today’s sell off (23 pts down) could be the first day of retracement. Gold made a high of 1227 December 2009. Its recent swing low of 1074 and its retracement (C at 1162) may be signaling a potential ABC Bearish Pattern.

Closing below the Entry Level of 1128 is the first signal of confirmation of ‘C’. If the bearish trend continues, the first target is near 1067 (62%) and 1009 (100%) of AB Range.

The Time Targets in Gold are: Jan 28 to March 05.Gold_Jan1210_Targets

Comments

5 Responses to “Gold in ABC Bearish Pattern”

  1. EntropyMan on January 13th, 2010 7:29 am

    How do you trade ZG, it seems extremely thin. According to my source (Tradestation) it is only averaging around 5,000 contracts traded per day? GC trades greater than 100,000 Contracts/day. I am not challenging your signals or methods, I am just curious about expanding my trading options and have looked at Gold and was curious as to slippages.

  2. tradechartpatterns on January 13th, 2010 7:39 am

    hi entropyman,

    Both @ZG and @GC (COMEX) have identical charts. I trade GC also (at times, YG – Gold Mini). Both ZG and GC have the same ABC Bearish signal.

    Regards,
    Suri

  3. EntropyMan on January 13th, 2010 1:29 pm

    How do you trade ZG, it seems extremely thin. According to my source (Tradestation) it is only averaging around 5,000 contracts traded per day? GC trades greater than 100,000 Contracts/day. I am not challenging your signals or methods, I am just curious about expanding my trading options and have looked at Gold and was curious as to slippages.

  4. tradechartpatterns on January 13th, 2010 1:39 pm

    hi entropyman,

    Both @ZG and @GC (COMEX) have identical charts. I trade GC also (at times, YG – Gold Mini). Both ZG and GC have the same ABC Bearish signal.

    Regards,
    Suri

  5. […] example, one of the main patterns covered in the book is the ABC pattern,  In a recent post, Suri describes the developing bearish ABC pattern in gold […]