The daily chart of Dec Gold shows a very strong confluence of lines within a 2 point range on Monday, from 1270.90 (the Major ML) to 1268.90 (the .618R level).
Some comments on the lines:
The line joining p5 and p6 (a counter-trend move) is a peak-to-low center line. The action point is p2. Very often a counter-trend move generates a useful center line for a/r work. Consider it supplemental and not primary (don't use solo).
The ml from p4 (red) is very close to the 2-4 2p line. This gives added strength to its indication as an important line. (It gives another clue about the "why" of p6.)
The 5-6 counter-trend move was held quite well within the channel of 3-4-5 (there was a post on this). Given this internal coherence, wl#1 to this same channel was drawn as an additional target line.
R1 of the rally is also present; its value is 1270.40 on Monday. In itself its strength to turn the decline is not great, but it's better than just OK. Supportive is that the action line from p15, drawn back in time, touches a pivot (within the prior decline). Hence the action line is a 2p line. The more pivots on both lines, the better. p4 is at least good on the settlement (on the CL, not above).
My past teacher in action/reaction work used to call this situation at a 0-Y mpl R1 an ARB point. It was where there was a line confluence occurring at Babson's R1 line. ARB stood for Andrews, Reinhart, and Babson. I think Reinhart may have been my teacher's first name in German. Never asked him.
He would use a very sensitive entry trigger at such a confluence.
At the R1 area we have the latest Major ML, a warning line, a minor ml, a 2p line, and a minor reaction line. Not all these lines need to be touched (such as .618 R at 1268.90.) But they might all be exceeded intraday, or even on the close if the level fails--assuming prices decline on Monday.
Should this level be reached on Monday with a favorable close, odds are good for a revisit to 1362.40 before this presumed low would be exceeded. Watch out for a Sunday night contract dump to try to smash through this area. Remember that most all traders know about the .618 level, but most do not know about the other lines. They might underestimate the strength inherent in an ARB point.
As always, we'll see how it works out.