Comex Gold Futures (GC) Technical Analysis – December 4, 2014 Forecast

February Comex Gold futures are trading lower. Traders could be waiting for news about the European Central Bank’s quantitative easing plans before making their move today. The market remains inside the major retracement zone which represents trader indecision. It could also mean the bids and offers are relatively equal so pay attention to the order flow today to get an early clue as to who has the upper hand.

The main range is $1256.20 to $1132.00. The key retracement zone is $1194.10 to $1208.80. To keep it simple, a sustained move over the upper or Fibonacci level will send out a bullish signal while taking out the lower or 50% level with conviction will be bearish.

The key Gann angle to watch today is at $1204.00. This angle, moving up $4.00 per day from the $1132.00 bottom, is acting like a 50% level or pivot. Holding above this angle will be bullish, falling below it will be bearish.

Holding $1204.00 will likely lead to a test of $1208.80. You can see this in the early going today. The daily chart indicates there is room to the upside if bids come in to support $1208.80. The next targets are last week’s high at $1221.00 and a downtrending angle at $1225.20. This is followed by another angle at $1240.70.

On the downside, look for offers to line up if $1194.10 is taken out, but don’t expect an acceleration to the downside to begin unless the sellers can push the market under the downtrending angle at $1194.20.

The daily chart opens up under $1194.10. Given the short-term range of $1141.70 to $1221.00, the first potential target is the 50% level at $1170.10, followed by the next uptrending angle at $1168.00 and the Fibonacci level at $1161.10.

The tone of the market today will be determined by trader reaction to the angle at $1204.00.