Comex Gold Futures (GC) Technical Analysis – December 9, 2016 Forecast

February Comex Gold futures are trading lower shortly before the cash market opening. The market is likely to begin the session on the weak side of a downtrending angle and a short-term pivot.

Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1158.60 will signal a resumption of the downtrend after several days of consolidation.

The short-term range is $1158.60 to $1190.20. Its 50% level or pivot is $1174.40. Look for a short-term downside bias on a sustained move under this price and a short-term upside bias on a sustained move under this pivot.

Forecast

Based on the current price at $1165.80 and the earlier price action, the direction of the gold market today will be determined by trader reaction to the downtrending angle at $1172.10.

A sustained move under $1172.10 will indicate the presence of sellers. This could create enough downside pressure to challenge this week’s low at $1158.60.

Overtaking the angle at $1172.10 will signal the presence of buyers. This is followed by the pivot at 1174.40. The market opens up to the upside over $1174.40 with the next target the major Fib level at $1182.00 and this week’s high at $1190.20.

Look to stay short as long as gold continues to walk down the Gann angle at $1172.10 today.