December Comex Gold futures posted a lower-high, lower-low and a lower-close on Friday. This makes $1234.00 a new minor top. The main trend is down, but a
December Comex Gold futures posted a lower-high, lower-low and a lower-close on Friday. This makes $1234.00 a new minor top. The main trend is down, but a new minor range was formed between $1183.30 and $1234.00. This makes its pivot at $1208.60 the next potential downside target.
The first angle to watch today is $1223.30. Based on the close at $1221.70, the market is expected to open weak. This sets up an initial test of the 50% level at $1208.60, followed by a pair of angles at $1203.30 and $1193.30.
If this market is setting up to move higher, then it has to pick up support on a pullback into the pivot at $1208.60 or the uptrending angles at $1203.30 and $1193.30. Bullish traders will try to form a secondary higher bottom.
On the upside, the first target is a long-term downtrending angle at $1234.30. The daily chart opens up over this angle with the next target the September 23 minor top at $1237.00 and a major 50% level.
The main range is $1324.30 to $1183.30. The retracement zone at $1253.80 to $1270.40 is the next major upside target, followed by a downtrending angle at $1279.30.
Watch the price action and order flow on a test of the pivot at $1208.60. Counter-trend buyers may show up at this level to support the market. This should correspond with a break in the U.S. Dollar.
If support for the dollar begins to erode considerably then watch for a possible breakout over the downtrending angle at $1234.30.
James Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement. He is the author of two books on technical analysis and has a background in both futures and stock markets.