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Gold Price Futures (GC) Technical Analysis – November 27, 2018 Forecast

By:
James Hyerczyk
Published: Nov 27, 2018, 14:05 UTC

Based on the early price action, the direction of the February Comex Gold futures contract the rest of the session is likely to be determined by trader reaction to the 50% level at $1227.20.

Comex Gold

Gold is trading higher on Tuesday, shortly after the regular session opening. The market is once again mirroring the price action in the U.S. Dollar. The catalysts behind the price action are comments from President Trump regarding additional tariffs on China and ECB President Draghi’s negative comments on the Euro Zone economy on Monday. Both comments helped the dollar strengthen, which put pressure on gold earlier today.

At 1330 GMT, February Comex Gold is trading $1229.80, up $1.10 or +0.09%.

Gold is also being supported by dovish comments from Fed Vice Chairman Richard Clarida. Just a short while ago he said in a speech that the central bank should take a “gradual” approach to rate hikes that should also be “data dependent.”  He also said the Fed is “much closer” to a neutral rate of interest that it was when it started hiking in December 2015.

Comex Gold
Daily February Comex Gold

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, the momentum is trending lower. A trade through $1252.00 will signal a resumption of the uptrend. The main trend will change to down on a move through $1202.40.

The minor trend is down. This is why the momentum is trending lower. It will change to up on a trade through $1236.70.

The main range is $1190.00 to $1252.00. Its retracement zone at $1221.00 to $1213.70 is support. Inside this zone is the short-term retracement zone at $1219.60 to $1215.50. This formation has created potential support clusters at $1221.00 to $1219.60 and $1215.50 to $1213.70.

The intermediate range is $1252.00 to $1202.40. Its retracement zone at $1227.20 to $1233.10 is resistance. The market has been trading inside this zone for seven sessions.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the February Comex Gold futures contract the rest of the session is likely to be determined by trader reaction to the 50% level at $1227.20.

Bullish Scenario

A sustained move over $1227.20 will indicate the presence of buyers. If this move generates enough upside momentum then look for the rally to extend into the Fibonacci level at $1233.10. This is followed by the minor top at $1236.70. This price is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under $1227.20 will signal the presence of sellers. Taking out today’s intraday low at $1225.80 will indicate the selling is getting stronger. This could lead to a collapse into the first support cluster at $1221.00 to $1219.60.

Gold is trading like a secondary market at this time. It’s getting its direction from the U.S. Dollar.

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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