Comex Gold Futures (GC) Technical Analysis – December 13, 2016 Forecast

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Updated: Dec 13, 2016, 12:48 UTC

February Comex Gold futures are trading lower shortly before the regular session opening. There was no follow-through to the upside after yesterday’s

February Comex Gold futures are trading lower shortly before the regular session opening. There was no follow-through to the upside after yesterday’s closing price reversal bottom which suggests this was short-covering rather than aggressive buying.

Although volume and volatility are expected to remain below average ahead of the Fed announcement on Wednesday, we could see both pick up today if the stock market sells off sharply.

Daily February Comex Gold

Technical Analysis

The main trend is down according to the daily swing chart. However, yesterday’s closing price reversal bottom may be an indication that momentum is getting ready to shift to the upside. This will occur on a move through $1167.90.

The short-term range is $1152.50 to $1167.90. Its 50% level or pivot is $1160.20. This price is key support today. It will essentially control the short-term direction of the market.

The main range is $1190.20 to $1152.50. Its 50% level or pivot at $1171.40 is the next upside target. This is followed by the major Fibonacci level at $1182.00.

Forecast

Based on the current price at $1161.00, the direction of the market today is likely to be determined by trader reaction to the pivot at $1160.20.

A sustained move over $1160.20 will indicate the presence of buyers. This could generate enough upside momentum to challenge a pair of downtrending angles at $1164.10 and $1166.20.

Overcoming $1166.20 will indicate the buying is getting stronger. This could drive the market into $1171.40. This is the trigger point for an acceleration into $1182.00.

A sustained move under $1160.20 will signal the presence of sellers. The daily chart is open to the downside under this level with $1152.50 the next target.

Watch the price action and read the order flow at $1160.20. Trader reaction to this level will tell us if the buying is getting stronger or if the sellers are retaking control.

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About the Author

James Hyerczykauthor

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.