Comex Gold Futures (GC) Technical Analysis – November 11, 2015 Forecast

December Comex Gold futures are trading flat shortly before the cash market opening. The range is tight and volume is low because of the U.S. bank holiday.

Yesterday, the market nudged lower to $1084.00. The move took out last week’s low at $1084.50 before rebounding into the close. This indicates that the weakness was likely due to sell stops rather than fresh shorting. It may also be a sign of trader indecision ahead of Friday’s U.S. retail sales report.

If momentum begins to shift to the upside then look for a possible drive into the September 11 main bottom at $1097.70. Sellers may come in on the first test of this level because “old bottoms tend to become new tops”. This level is followed closely by the steep downtrending angle at $1103.10 and the October 2 bottom at $1103.80.

The angle at $1103.10 is a trigger point for a potential acceleration to the upside.

The nearest downside target is yesterday’s low at $1084.00. Taking out this level with conviction will likely trigger a further break into the July 24 main bottom at $1073.70.

Today is a tough call because of the expectation of below average volume. Be careful buying strength and selling weakness. Keep in mind that the tighter they wind this market, the greater the move to expect once volume returns to normal-to-above normal. This may not occur until Friday, however, since many traders may refuse to commit to either side until after the U.S. retail sales report is released.