I have been following this pattern for about a month now...We are beginning wave E of the Elliot Triangle Wave...Gold needs to bounce off the red support line in order to have a chance to break out of the triangle for a bullish move to higher highs. If gold breaks below and closes below on the daily chart without re-entering the triangle this could change the pattern to a downward price channel. An alternative wave count will need to be done if there is a breakdown. This doesn't mean that the cup and handle is invalid. The price needs to stay above 50% of the last impulse wave to stay valid. If Gold drops below around $1,258 then it is safe to assume that the cup and handle is dead. Keep your eye on the chart.