Comex Gold Futures (GC) Technical Analysis – December 6, 2016 Forecast

February Comex Gold futures are trading flat shortly before the regular session opening. Like the Euro and the U.S. Dollar Index, gold is trading inside the previous day’s range. This indicate investor indecision and impending volatility.

Sellers could have crushed gold on Monday since there is so much room to the downside. However, the price action suggests that an aggressive bottom-picker came in to stop the plunge. Yesterday’s strong short-covering rally into the close and today’s firm price action suggests that counter-trend buyers may be coming in to support the market.

Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1190.20 will turn the main trend to up. A drive through $1158.60 will signal a resumption of the downtrend.

The short-term range is $1158.60 to $1190.20. Its 50% level or pivot is at $1174.40. The market is currently straddling this price.

The main range is $1236.10 to $1158.60. Its retracement zone at $1197.40 to $1206.50 is the primary upside target.

Forecast

Based on the current price at $1175.00, the direction of the gold market today is likely to be determined by trader reaction to the pivot price at $1174.40.

A sustained move under $1174.40 will indicate the presence of sellers. The daily chart is open to the downside with $1158.60 the next likely target.

A sustained move over $1174.40 will signal the presence of buyers. This move could create enough upside momentum to challenge a major Fibonacci level at $1181.00 and a downtrending angle at $1184.10. This angle is the trigger point for an acceleration into $1190.20 then the main 50% level at $1197.40.

Watch the price action and read the order flow at $1174.40 today. Trader reaction to this price will set the tone for the day.

Gold Fundamental Forecast