Comex Gold Futures (GC) Technical Analysis – November 9, 2015 Forecast

December Comex Gold futures finished sharply lower on Friday and near the low of the day and week. Sellers were looking for the downside momentum to continue, but when they didn’t get it, they started to book profits and lighten-up on the downside. This is helping to generate an inside move on the daily chart. The inside move is often indicative of trader indecision and impending volatility.

Friday’s stronger-than-expected jobs report changed the probability of a December rate hike by the Fed from 50% to 70%. This Friday, the U.S. will release its latest retail sales figures. Some short-sellers may not want to sell weakness ahead of the report so they may square up their positions in order to drive the market into a more favorable resistance area before re-shorting the market on a strong retail sales report.

Technically, the main trend is down on the daily chart.

The first upside objective is the September 11 former bottom at $1097.70. This is followed closely by the October 2 bottom at $1103.80. Overtaking these levels will likely trigger more short-covering by those investors who sold weakness late last week.

The first major objective of the short-covering rally is a steep downtrending angle at $1119.10. This is the nearest true resistance so a test of this angle is likely to attract fresh shorting pressure.

On the downside, taking out $1084.50 could trigger an acceleration into the July 24 main bottom at $1073.70.

Based on the current price at $1092.70, the first major decision today will come in on a test of $1097.70. Trader reaction to this level will tell us whether the buyers or the sellers are in control.