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Gold Price Futures (GC) Technical Analysis – Getting Chopped by Series of Retracement Levels

By:
James Hyerczyk
Published: Sep 17, 2020, 16:17 UTC

The direction of the December Comex gold market into the close will be determined by trader reaction to the 50% level at $1956.70.

Gold

Gold futures are trading lower on Thursday, but clawing back from its lows as the U.S. Dollar gives back earlier gains. Gold was pressured earlier in the session after yesterday’s Fed announcements disappointed expectations for further stimulus to spur inflation and support the economy, devastated by the COVID-19 pandemic.

At 15:25 GMT, December Comex gold is trading $1955.00, down $15.50 or -0.79%.

Despite the weakness, the Fed said nothing that would alter the bullish long-term picture for gold. Central bank policymakers pledged to keep rates pinned near zero levels until inflation was on track to “moderately exceed” its 2% inflation target “for some time”.

Daily December Comex Gold

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through $2001.20 will signal a resumption of the uptrend. The main trend changes to down on a trade through $1911.70.

The choppy trade is being caused by a series of retracement levels.

Support is $1947.80 and $1939.20.

Resistance is $1956.70 and $1966.90.

On the upside, the major resistance zone is $1981.70 to $2007.10. This zone stopped rallies on Wednesday at $1983.80 and on September 1 at $2001.20.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December Comex gold market into the close will be determined by trader reaction to the 50% level at $1956.70.

Bullish Scenario

A sustained move over $1956.70 will indicate the presence of buyers. This could lead to a labored rally with potential upside targets layered at $1966.90 and $1981.70. The latter is a potential trigger point for an acceleration to the upside with the next targets $2001.20 and $2007.10.

Bearish Scenario

A sustained move under $1956.70 will signal the presence of sellers. This could trigger a further break into $1947.80 and $1939.20. The latter is a potential trigger point for an acceleration to the downside.

For a look at all of today’s economic events, check out our economic calendar.

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.

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