Advertisement
Advertisement

Gold Price Futures (GC) Technical Analysis – Could Be Building Support Base Between $1489.20 to $1481.30

By:
James Hyerczyk
Published: Oct 24, 2019, 06:09 UTC

Based on this week’s price action and the current price at $1495.60, the direction of the December Comex gold futures contract on Thursday is likely to be determined by trader reaction to the 50% level at $1489.20.

Comex Gold

Gold is trading flat early Thursday as investors continue to wait for fresh news on Brexit and U.S.-China trade talks, while beginning to gear up for next week’s U.S. Federal Reserve interest rate decision. The market has been trading inside a trading range since October 11, the day President Trump announced phase one of a partial trade deal between the United States and China.

At 05:49 GMT, December Comex gold is trading $1495.60, down $0.10 or -0.01%.

Rising Treasury yields and increasing demand for risky assets have also been pressuring gold. However, a month-long sell-off in the U.S. Dollar has helped prop-up prices, while preventing a steep plunge.

Comex Gold
Daily December Comex Gold

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1478.00 will indicate the selling pressure is getting stronger. Taking out $1465.00 will reaffirm the downtrend.

A trade through $1522.30 will change the main trend to up. Taking out the next main top at $1525.80 will reaffirm the uptrend.

The intermediate range is $1412.10 to $1566.20. Its retracement zone at $1489.20 to $1471.00 is the first support area.

The main range is $1396.40 to $1566.20. Its retracement zone at $1481.30 to $1461.30 is the major support area.

The two zones combine to make $1489.20 to $1481.30 the key area to watch. This is followed by $1471.00 to $1461.30.

The short-term range is $1566.20 to $1465.00. Its retracement zone at $1515.60 to $1527.50 is the key upside target.

Daily Swing Chart Technical Forecast

Based on this week’s price action and the current price at $1495.60, the direction of the December Comex gold futures contract on Thursday is likely to be determined by trader reaction to the 50% level at $1489.20.

Bullish Scenario

A sustained move over $1489.20 will indicate the presence of buyers. If this can attract enough buyers to trigger an acceleration to the upside then we could see a test of the 50% level at $1515.60.

Bearish Scenario

A sustained move under $1489.20 will signal the presence of sellers. The first downside target is the 50% level at $1481.30, followed by the October 11 low at $1478.00.

Taking out $1478.00 could extend the break into a Fibonacci level at $1471.00, followed by the main bottom at $1465.00 and another Fibonacci level at $1461.30.

The Fib level at $1461.30 is the trigger point for an acceleration to the downside with $1412.10 the next major target.

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.

Did you find this article useful?

Advertisement