December Comex Gold futures inched lower on Monday, putting the market in a position to weaken further. The main range is $1183.30 to $1255.60, making the
December Comex Gold futures inched lower on Monday, putting the market in a position to weaken further. The main range is $1183.30 to $1255.60, making the primary target its retracement zone at $1219.40 to $1211.00.
Daily December Comex Gold
An uptrending angle from the $1183.30 bottom passes through the retracement zone at $1217.30, making it a valid target today.
The upcoming test of the retracement zone is very important to the near-term structure of the market. Buyers will likely show up inside the retracement zone in an effort to form a potentially bullish secondary higher bottom. Bearish traders will use this zone as a launching pad for an acceleration to the downside. Whoever wins the trading battle inside $1219.40 to $1211.00 will likely set the tone of the market for the near-term.
Watch for profit-taking or aggressive counter-trend buying on the first test of $1219.40. This could produce an intraday technical bounce.
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.
