Gold Price Futures (GC) Technical Analysis – November 19, 2018 Forecast

Gold is struggling on Monday shortly before the regular session opening. The move is a bit surprising because the U.S. Dollar is edging lower against a basket of currencies. Last week, gold closed higher in four out of five sessions after hitting its lowest level in a little more than a month. The market was supported by worries that U.S. inflation may be cooling. Furthermore, a few dovish comments from Fed officials raised questions over the pace of future rate hikes.

At 1230 GMT, December Comex Gold is trading $1220.60, down $2.40 or -0.20%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through $1246.00 will signal a resumption of the uptrend. A move through $1196.60 will change the main trend to down.

The minor trend is down. This is why momentum is trending lower. A trade through $1239.30 will change the minor trend to up and shift momentum to the upside.

The major retracement zone support is $1206.60 to $1197.20. This zone stopped the selling last week at $1196.60.

The main range is $1184.30 to $1246.00. Its retracement zone at $1215.20 to $1207.90 is additional support. Holding over this zone is helping to give the market its upside bias.

The short-term range is $1246.00 to $1196.60. Its retracement zone at $1221.30 to $1227.10 is the first upside target. This zone was tested on Friday. It also rejected the market earlier today.

Daily Technical Forecast

Based on the early price action, the direction of the December Comex Gold futures contract the rest of the session is likely to be determined by trader reaction to the longer-term uptrending Gann angle at $1220.30.

Bullish Scenario

A sustained move over $1220.30 will indicate the presence of buyers. This is followed closely by the short-term 50% level at $1221.30. If this move can generate enough upside momentum then look for a potential surge into the Fibonacci level at $1227.10. This is another trigger point for rally into a downtrending Gann angle at $1230.00.

The daily chart indicates there is plenty of room to the upside over $1230.00 so don’t be surprised by a price acceleration.

Bearish Scenario

A sustained move under $1220.30 will signal the presence of sellers. If selling volume increases on the move then look for a potential plunge into the 50% level at $1215.20, followed by the uptrending Gann angle at $1212.60.