Comex Gold Futures (GC) Technical Analysis – August 21, 2015 Forecast

December Comex Gold futures are trading slightly lower shortly before the cash market opening. Earlier in the session, the market surged to the upside to its highest level since July 9. The move was triggered by follow-through selling in the global equity markets. Stock investors have been parking their proceeds in the gold market and also using the market as a hedge against further declines.

The main trend is up according to the daily swing chart. The trend turned up earlier in the week when the swing top at $1126.30 was taken out. The new swing bottom is $1108.50.

The main range is $1207.30 to $1073.70. Its retracement zone is $1140.50 to $1156.30. Earlier in the session, the market took out the upper or Fibonacci level at $1156.30 before breaking back below it. This price is new resistance while the lower or 50% level is new support.

Earlier in the session, the market also broke out over an uptrending angle at $1153.70 and a downtrending angle at $1162.30. Buyers, however, could not hold on to these gains and these areas are now new resistance.

Overtaking resistance at $1153.70, $1156.30 and $1162.30 will put the market in a strong position. If a breakout over $1162.30 is accompanied by strong volume then look for an acceleration into the next downtrending resistance angle at $1184.80.

A sustained move under $1153.70 will signal the presence of sellers. This could trigger a break into the 50% level at $1140.50 then a steep uptrending angle at $1132.50. The daily chart opens up to the downside under this angle with the next target another uptrending angle at $1120.50.

The major support angles come in at $1114.50 and $1113.70 today.

Watch the price action and read the order flow at $1153.70. This will tell us whether the bulls or the bears are in control.