Comex Gold Futures (GC) Technical Analysis – August 27, 2015 Forecast

December Comex Gold futures are trading slightly better during the pre-market session after a sharp sell-off on Wednesday. The main trend is still up according to the daily swing chart, however, momentum has shifted to the downside.

The short-term range is $1073.70 to $1169.80. Its retracement zone is $1121.70 to $1110.40. Yesterday’s low at $1116.90 tested this zone. During the pre-market session, gold successfully tested the upper or 50% level at $1121.70.

A pair of uptrending angles at $1122.50 and $1121.70 form a tight cluster with the 50% level at $1121.70. This is the key support today. Based on the early price action, it looks as if buyers have come in to defend the trend.

A sustained move over $1122.50 could create enough upside momentum to challenge the first target at $1136.50. This is followed by a major 50% level at $1140.50 and a steep downtrending angle at $1145.80. The daily chart opens up over this angle with $1156.30 the next likely target.

A sustained move under $1121.70 will signal the presence of sellers. This is a trigger point for an acceleration to the downside with the Fibonacci level at $1110.40 the next likely target.

Taking out $1108.50 will turn the main trend to down. This could trigger another steep break into $1097.70.

Watch the price action and read the order flow at $1122.50 to $1121.70 today. This will tell us whether the bulls or the bears are in control.