Comex Gold Futures (GC) Technical Analysis – August 28, 2015 Forecast
December Comex Gold is called higher shortly before the cash market opening. The main trend is up according to the daily chart, but momentum has shifted to the downside. The direction of the market the rest of the session will be determined by trader reaction to the movement by the stock indices and the U.S. Dollar.
Currently, the key angles that are guiding the market slightly higher are at $1124.50 and $1123.70. Additional support is a short-term 50% level at $1121.70. If selling pressure blows up support then look for an acceleration down to the Fibonacci level at $1110.40.
Gold could accelerate to the downside if $1110.40 fails because it will likely lead to a break through the main bottom at $1108.50. Taking out this bottom will turn the main trend to down on the daily chart. This price is also a trigger point for an acceleration down to angles at $1098.70 and $1086.20. The latter is the last potential support angle before the $1073.70 main bottom.
If enough buying comes in to hold the market above the support angles at $1124.50 and $1123.70 as well as above the 50% level at $1121.70 then look for the rally to extend into a steep downtrending angle at $1137.80.
A break out over $1137.80 is likely to challenge a resistance cluster at $1140.50. This could trigger an acceleration into a downtrending angle at $1153.80.
Watch the price action and read the order flow at $1124.50 and $1123.70. This will tell us whether buyers are still coming in to support the market, or if sellers are winning the battle. However, don’t expect a sharp break unless $1121.70 is taken out with conviction.