Despite another sell-off in the U.S. equity markets and the U.S. Dollar, December Comex Gold futures are trading flat-to-lower. The market is currently
Despite another sell-off in the U.S. equity markets and the U.S. Dollar, December Comex Gold futures are trading flat-to-lower. The market is currently straddling a downtrending resistance angle, while being supported by a Fibonacci level.
The main trend is up according to the daily swing chart. The main range is $1207.30 to $1073.70. Its retracement zone is $1140.50 to $1156.30. On Friday, the market closed on the bullish side of this retracement zone. The upper, or Fibonacci level at $1156.30 is providing support during the pre-market session.
A sustained move over $1156.30 will signal the presence of buyers. Don’t expect an acceleration to the upside, however, unless buyers can overcome the downtrending angle at $1161.30 with conviction. The daily chart is wide open to the upside with $1184.30 the next target, followed by $1195.80. This is the last potential resistance angle before the $1207.30 main top.
A sustained move under the Fib level at $1156.30 will signal the presence of sellers. The first potential target is the support cluster at $1140.50. The daily chart opens up to the downside under this cluster with the next target another price cluster at $1116.50 to $1115.70. This is the last major support area before the main bottom at $1108.50.
Watch the price action and order flow at $1156.30 and $1161.30 today. This will tell us whether the bulls or the bears are in control. Look for a bullish tone to develop on a sustained move over $1161.30 and a bearish tone to develop on a sustained move under $1156.30.
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.