Comex Gold Futures (GC) Technical Analysis – November 23, 2015 Forecast

The stronger U.S. Dollar sent February Comex Gold futures sharply lower shortly after the pre-market opening. Trader reaction to this move will likely set the tone for the week. Bullish traders are going to try to form a secondary higher bottom. Bearish traders are going to try to take out a multi-year low at $1062.40 while making $1087.30 a new lower main top.

The main trend is down according to the daily swing chart. The current main bottom is $1062.40. A trade through this level will signal a resumption of the downtrend. The new minor top is $1087.30. A trade though this level will indicate the counter-trend buying is getting stronger.

The short-term range is $1062.40 to $1087.30. Its 50% level or pivot is $1074.80. Based on the close at $1076.30, the direction of the market today is likely to be determined by trader reaction to this pivot.

Look for a bullish tone to develop on a sustained move over the price cluster formed by the uptrending angle at $1074.40 and the 50% level at $1074.80. This move could create enough upside momentum to challenge a steep uptrending angle at $1086.40 and last week’s high at $1087.30. Crossing over to the strong side of the angle at $1086.40 will put gold in a bullish position.

A sustained move under $1074.40 will indicate the presence of sellers. The first downside target is an uptrending angle at $1068.40. This is followed by uptrending angles at $1065.40 and $1063.90. The latter is the last potential support angle before the $1062.40 main top.

The main trend is down and with the stronger dollar, it’s hard to be a buyer at current price levels. Watch the price action and read the order flow at $1074.40 today. Trader reaction to this level will set the tone for the day. Volume may be low this week because of the U.S. holiday on Thursday. This may, at times, create volatile two-sided trading action.