Comex Gold Futures (GC) Technical Analysis – August 12, 2015 Forecast

December Comex Gold futures continued to creep higher on Tuesday. The short-covering and speculative buying has been tentative, but the ranges have been slowing widening, suggesting the market may be setting up for a relatively big move to the upside.

After consolidating for nearly two weeks, gold has crossed over and sustained a rally over the top of the range at $1104.90. This indicates the presence of buyers. A break back below this level will be a sign of weakness. The best target under this level is an uptrending angle at $1099.70. This angle is currently guiding the market higher.

A failure to hold $1099.70 could trigger a steep break into uptrending angles at $1086.70 and $1080.20. The latter is the last potential support before the $1073.70 main bottom.

If the upside momentum continues then look for the rally to extend into a pair of angles today. The first is an uptrending angle at $1125.70. Overcoming this angle will put the market in a strong position. The next angle drops in at $1131.30. This is potential resistance so long traders should prepare for a possible technical bounce due to profit-taking.

The main trend is still down according to the daily swing chart, however, momentum has shifted to the upside. The main range is $1207.30 to $1073.70. Its retracement zone at $1140.50 to $1156.30 remains the primary upside target. Since the main trend is down, aggressive sellers may be waiting inside the retracement zone to initiate fresh short positions.

Since momentum is on the upside, look for buyers to extend the rally into at least $1125.70. Overcoming this angle could drive the market into $1131.30 and $1140.50. A trade through $1099.70 will set a bearish tone.