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Gold Price Futures (GC) Technical Analysis – July 29, 2019 Forecast

By:
James Hyerczyk
Published: Jul 29, 2019, 10:08 UTC

Based on the early price action and the current price at $1431.50, the direction of the December Comex gold futures contract on Monday is likely to be determined by trader reaction to the 50% level at $1431.70.

Comex Gold

Gold futures are trading flat-to-lower on Monday shortly before the regular session opening. Volume is light and the market is trading inside Friday’s range, which tends to indicate investor indecision and impending volatility. The market is mirroring the pattern in U.S. Treasurys and the September U.S. Dollar Index. The price action suggests investors aren’t sure how to play the Fed’s interest rate decision and monetary policy statement, due to be released on Wednesday. Due to the uncertainty of the event, gold traders may feel it’s best to keep their powder dry for a couple of days.

At 09:54 GMT, December Comex gold futures are trading $1431.50, down $0.70 or -0.05%.

Comex Gold
Daily December Comex Gold

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on July 19 at $1467.00.

The main trend will change to down on a trade through $1413.70. If this is taken out, the selling could extend into a pair of main bottoms at $1399.80 and $1396.40.

The minor trend is down. This confirmed the shift in momentum to the downside. A trade through $1447.00 will change the minor trend to up. This will shift momentum to the upside.

The main range is $1396.40 to $1467.00. Its retracement zone at $1431.70 to $1423.40 is currently being tested as investors try to build a support base inside this zone.

Daily Technical Forecast

Based on the early price action and the current price at $1431.50, the direction of the December Comex gold futures contract on Monday is likely to be determined by trader reaction to the 50% level at $1431.70.

Bullish Scenario

A sustained move over $1431.70 will indicate the presence of buyers. This could trigger a move into the uptrending Gann angle at $1434.40. Overcoming this angle will indicate the buying is getting stronger. If this creates enough upside momentum then look for the rally to possibly extend into the downtrending Gann angle at $1443.00.

Bearish Scenario

A sustained move under $1431.70 will signal the presence of sellers. This could trigger an acceleration to the downside with the next targets a minor bottom at $1423.90 and a Fibonacci level at $1423.40. If this level fails then look for an extension of the selling into the uptrending Gann angle at $1415.40.

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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