Familiar Price Action in Gold Market

One powerful analytical tool I use is to look for market correlations regarding recent price action, and what future price action may hold. In the case of April gold futures, see on the daily bar chart that recent price action resembles that which took place from October through late December of last year. See that last fall prices were in a solid uptrend, but then in early December began to back off, and the uptrend on the daily chart for April gold was penetrated on the downside in early January. However, prices then pushed back higher to score a fresh for-the-move high in early February.

click on the chart to enlarge

Just recently, prices have dropped sharply and negated an uptrend line on the chart. Will recent price history in gold repeat itself, whereby gold recovers to push to a fresh high? Also note on the chart that the $634.00 price level is key Fibonacci technical support. A close below that price level would produce serious near-term chart damage to suggest a market top is in place.
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