Comex Gold Futures (GC) Technical Analysis – November 30, 2015 Forecast

February Comex Gold futures are trading flat-to-lower during the pre-market session. Traders are watching the movement in the U.S. Dollar while preparing for an interest rate hike by the Fed in mid-December.

The market ended last week with a sharp break to the downside. The move took out the previous main bottom at $1062.40, signaling a resumption of the downtrend. It also made $1087.30 a new main top. A trade through this level will turn the main trend back to up. One swing trading model suggests that gold futures could break to $966.50 by December 10.

Based on Friday’s close at $1056.20, the direction of the market today is likely to be determined by trader reaction to the steep, short-term downtrending angle at $1047.30.

Holding the angle at $1047.30 will indicate the presence of buyers. This may create enough upside momentum to challenge the next downtrending angle at $1067.30. This angle is important because it has been providing resistance and guiding the market lower since November 20.

Taking out the angle at $1067.30 could trigger more short-covering into downtrending angles at $1077.30 and $1082.30. The latter is the last potential resistance angle before the $1087.30 main top.

A sustained move under $1047.30 will signal the presence of sellers. This move will put gold in an extremely bearish position. The next major downside target under this angle comes in at $1007.20 today.

Watch the price action and read the order flow at $1047.30 today. Trader reaction to this price will set the tone of the market today and perhaps the week.