After prices reached some extreme overbought levels Gold futures have slid more than $100 an ounce since the start of December. But as we head into the Christmas holiday we find Gold at strong daily Fibonacci support between $1114-$1105 basis the Feb Gold futures.

The first test of strong support levels is the most important one for traders to focus on since these levels most often produce a correction of the previous sell off. In the case of Gold, prices did consolidate at the daily Fib support level and had a modest rally out of that area in Friday’s session. The 400 tick chart shows an ABCD buy entry at the $1105 area.

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