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Comex Gold Futures (GC) Technical Analysis – August 20, 2015 Forecast

By:
James Hyerczyk
Published: Aug 20, 2015, 10:18 UTC

December Comex Gold futures are trading higher shortly before the cash market opening as aggressive investors continue to bet against a September interest

Daily December Comex Gold

December Comex Gold futures are trading higher shortly before the cash market opening as aggressive investors continue to bet against a September interest rate hike by the Fed. Declines in global stock markets are also providing a boost to the metal’s safe-haven appeal.

Even though the Fed minutes released on Wednesday said that most Federal Reserve officials thought economic conditions needed for a rate hike were “approaching”, gold traders reacted as if it wasn’t a done deal mostly because inflation remains below the 2.0% mandate.

Daily December Comex Gold
Daily December Comex Gold

Technically, the main trend turned up on the daily swing chart on Wednesday when gold rallied through the August 13 main top at $1126.30. The new main bottom is $1108.50. Also in a sign of strength, gold accelerated through a long-term downtrending angle from the $1207.30 main top. This angle is at $1119.30 today.

The main range is $1207.30 to $1073.70. Its 50% level at $1140.50 is currently being tested. Based on the current price at $1138.90, the direction of the market today will be determined by trader reaction to the pivot.

A failure to overcome the pivot at $1140.50 will indicate the presence of sellers. This could trigger a break into a pair of angles at $1124.50 and $1116.50. The best support is a Gann angle cluster at $1112.50 to $1111.70. Breaking this price cluster could be a sign that the rally is failing.

A sustained move over the pivot at $1140.50 will signal the presence of buyers. The first upside objective is a steep uptrending angle at $1149.70. This is followed by the Fibonacci level at $1156.30 and a long-term downtrending angle at $1163.30.

Watch the price action and read the order flow at $1140.50. This will tell us whether the bulls or the bears are in control. 

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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