December Comex Gold futures are trading lower shortly before the regular session opening and today’s U.S. Non-Farm Payrolls report. A stronger-than-report
December Comex Gold futures are trading lower shortly before the regular session opening and today’s U.S. Non-Farm Payrolls report. A stronger-than-report or a report that supports a Fed rate hike should be bearish for gold. However, due to the prolonged sell-off, we’re not sure if the news has already been priced into the market.
The main trend is up according to the daily swing chart. A trade through $1268.50 will signal a resumption of the downtrend with the next target the August 8 bottom at $1257.10.
A trade through $1285.00 will change the minor trend to up.
The gold market is currently sitting inside the major retracement zone, bounded by $1286.80 to $1268.90. Holding inside this range will likely mean that bullish counter-trend traders are trying to form a major bottom. Taking out the Fib level at $1268.90 will be bearish. Overcoming the 50% level at $1286.80 will be bullish.
If a new range develops between $1317.10 and $1268.50 then its retracement zone at $1292.80 to $1298.50 will become the primary upside target.
Based on the current price at $1271.60 and the earlier price action, the direction of the gold market today is likely to be determined by trader reaction to the main Fibonacci level at $1268.90.
A sustained move over $1268.90 will indicate the presence of buyers. If this move gains traction then we could see a rally into the steep downtrending angle at $1285.10. This angle forms a resistance cluster with the $1285.00 minor top.
A sustained move under $1268.90 will signal the presence of sellers. This should lead to an immediate test of yesterday’s low at $1268.50. This is a possible trigger point for an acceleration into the next major bottom at $1257.10.
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.