Gold and 78.6% Fibonacci Retracement
(GCG26)
ONE44 utilizes two approaches for identifying market support and resistance.
The first method involves a significant Gann square, indicated by the yellow horizontal line on the chart. The second is based on Fibonacci retracement levels.
Interestingly, gold has consistently hit a 38.2% Fibonacci retracement during each decline in this remarkable rally. The most recent instances were on October 28, 2025, and December 31, 2025. Currently, the rally is approaching the 78.6% level of the contract high. Per ONE44’s 78.6% rule, if new highs are not achieved within this 78.6% retracement range, it could signal the end of the current rally and likely lead to a significant pullback.
Focus Points Moving Forward
1/11/26
GCG26
Since last week,
the break reached 38.2% at the Major Gann Square level of 4295.80, but it managed to avoid closing below 4335.00, which will be crucial for this week.
This week, 4335.00 will serve as our swing point.
If the market holds above 38.2%, it may push back towards new highs, with a short-term target of 4517.00, marking 78.6% of the all-time high.
This week’s high reached 4517.00, an increase of 78.6%, and this will be a key level to watch. If new highs are not established within this retracement zone, a sharp decline could follow.
We’ll consider 4517.00 as our swing point for the week.
If the market fails to turn down from this area, it will primarily highlight the major Gann square, which can be used for identifying resistance when closing above it. The next significant levels are 4649.30 and 4860.20.
If the market falls below, the immediate target aligns with the 78.6% rule—specifically, 4345.00. On a longer-term scale, the target drops to 4070.00, representing 78.6% back to the low on October 28, 2025, and also 38.2% back to the low on May 15, 2025.
ONE44 Analytics aims to provide direct and clear insights, helping you understand the rationale behind market movements through pure price analysis based on Fibonacci retracement levels. We focus on the foundational structures of the market and Gann Square.
