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Gold Price Futures (GC) Technical Analysis – Looking for Near-Term Test of Value Zone at $1781.00 – $1757.10

By:
James Hyerczyk
Published: Nov 22, 2021, 18:09 UTC

The direction of the December Comex gold market into the close is likely to be determined by trader reaction to $1821.50.

Comex Gold

In this article:

Gold futures are trading sharply lower at the mid-session on Monday as the U.S. Dollar jumped after Federal Reserve Chair Jerome Powell was nominated for a second term, driving expectations that the central bank may stay the course on tapering economic support.

At 17:51 GMT, December Comex gold is trading $1812.10, down $42.20 or -2.28%.

Fed policymakers are debating whether to withdraw support more quickly to deal with inflation, after one of its most influential officials signaled that the idea will be on the table at the December meeting.

Daily February Comex Gold

Daily Swing Chart 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 November 16.

A trade through $1761.00 will change the main trend to down. A move through $1881.90 will negate the closing price reversal top and signal a resumption of the uptrend.

The minor range is $1761.00 to $1881.90. The market is currently trading on the weak side of its 50% level at $1821.50, making it resistance.

The short-term range is $1723.70 to $1881.90. Its 50% level at $1802.80 is the next downside target.

The main range is $1680.00 to $1881.90. Its retracement zone at $1781.00 to $1757.10 is the primary downside target. Look for buyers to return on a test of this area since it could be a value zone.

Daily Swing Chart Technical Analysis

The direction of the December Comex gold market into the close is likely to be determined by trader reaction to $1821.50.

Bearish Scenario

A sustained move under $1821.50 will indicate the presence of sellers. If this continues to generate downside momentum then look for a pullback into $1802.80.

Watch for a technical bounce on the first test of $1802.80, but if it fails then look for the selling to possibly extend into the main 50% level at $1781.00, followed by the main 61.8% level at $1757.10.

Somewhere between $1781.00 and $1757.10, look for buyers to re-emerge.

Bullish Scenario

A sustained move over $1821.50 will signal the presence of buyers. If this move generates enough upside momentum then we could see a 1 to 2 day rally into at least $1845.40.

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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