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Comex Gold Futures (GC) Technical Analysis – November 24, 2015 Forecast

By:
James Hyerczyk
Updated: Nov 24, 2015, 08:56 UTC

February Comex Gold futures finished sharply lower on Monday as investors reacted to the strong U.S. Dollar and increased bets the Fed will raise rates in

Daily February Comex Gold

February Comex Gold futures finished sharply lower on Monday as investors reacted to the strong U.S. Dollar and increased bets the Fed will raise rates in December.

Based on the close at $1066.60, the first downside targets are a pair of uptrending angles at $1066.40 and $1064.40. The latter is the last potential support angle before the $1062.40 main bottom.

Daily February Comex Gold
Daily February Comex Gold

Taking out $1062.40 will signal a resumption of the downtrend. The daily chart indicates that this could trigger an acceleration to the downside since the next major target doesn’t come in until $1031.20.

Holding above $1066.40 will indicate the presence of buyers. Overcoming the angle at $1070.40 will indicate the buying is getting stronger.

The new short-term range is $1062.40 to $1087.30. Its 50% level or pivot is at $1074.80. This price may actually be controlling the short-term direction of the market.

Overcoming $1074.80 will likely lead to a test of the steep uptrending angle at $1078.40. Gold could begin to accelerate over this angle with the next major target a minor top at $1087.30 and a steep uptrending angle at $1094.40. Overcoming this angle will put the index in an extremely strong position.

 Look for a choppy, two-sided trade if gold straddles $1070.40 throughout the session. Overcoming $1074.80 will indicate the short-covering is getting stronger. Taking out $1062.40 with conviction will signal the selling is increasing.

Volume and volatility are expected to be below average today because of the U.S. bank holiday on Thursday. Nevertheless, traders should watch for periodic spike moves. Be careful buying strength and selling weakness unless the volume is on your side. Volatility and volume could increase with the release of the U.S. GDP report at 8:30 a.m. ET. Traders are looking for a reading of 2.0. 

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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