Looking at the Gold futures we can see that after pushing through the neckline mentioned on the Inverse H&S chart and also seen here, 1,170.7 was printed as a high on 4/12/10. Gold retreated partly due to the strengthening Dollar when the Greece news hit.
Taking a look at the Fibonacci study here we can see some levels to aim for and use as a guide. We can see that Gold looks to be finding some support and getting a Bid here. I would anticipate 1,170.7 to be the first level of some pause or resistance if Gold does get going higher here. If the highs put in on 4/12/10 of 1,170.7 get taken out, look for 1193 to be an area Gold can accelerate to which comes in at the 127% Fibonacci extension followed by the 161.8% extension of 1,223.8 which comes very close to the all time highs printed on 12/03/09 of 1,227.5. I am also looking at the measured move depicted by the Green line marked A when super imposed and depicted by the Green line marked B to push Gold up to roughly the same area as the 161.8 Fibonacci extension.
I like this particular setup because it sets up several probabilities in the favor of a bullish outlook on Gold.
Keep in mind if This can fail and if Gold pulls back and puts in lower lows, we will have to go back to the drawing book to construct a new plan.
The safest and most conservative approach to enter a long position would more than likely be to wait until the April 12th highs of 1,170.7 highs get taken out.
In closing I would like to say, always keep an eye on the Dollar as historically it tends to affect commodities and Gold falls under that category.
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