Gold Price Futures (GC) Technical Analysis – September 29, 2017 Forecast

December Comex Gold futures are trading slightly higher shortly before the regular session opening. Yesterday, the market formed a potentially bullish closing price reversal bottom. This chart pattern was confirmed during the pre-market session.

This chart pattern doesn’t mean the trend is changing to up, but it could trigger a shift in momentum to the upside. It’s going to need help from a weaker dollar to fuel the move, however. Typically, we see a 2 to 3 day counter-trend move or a 50% retracement of the last break.

Daily Technical Analysis

The main trend is down according to the daily swing chart. It changes to up on a trade through $1317.10. A move through $1280.40 will change the main trend to down.

Yesterday’s closing price reversal bottom occurred inside a major retracement zone bounded by $1286.80 to $1268.90.

The new short-term range is $1317.10 to $1280.40. Its retracement zone at $1298.80 to $1303.10 is the primary upside target. Since the main trend is down, sellers are likely to show up on a test of this zone.

Daily Forecast

Based on the current price at $1291.50 (1045 GMT) and the earlier price action, the direction of the gold market today is likely to be determined by trader reaction to the steep downtrending angle at $1293.10.

Overtaking $1293.10 and sustaining the rally will indicate the presence of buyers. This could trigger an acceleration to the upside with $1298.80 the first upside target, followed by a Fibonacci level at $1303.10 and another downtrending angle at $1305.10.

The inability to overcome $1293.10 will signal the presence of sellers. This could drive the market back into a steep uptrending angle at $1288.40. This is followed by layers of potential support including the major 50% level at $1286.80, and uptrending angles at $1284.40, $1282.40 and $1281.40. The latter is the last potential support angle before the $1280.40 main bottom.

Watch the price action and read the order flow at $1288.40. Trader reaction to this angle will tell us if the buying is getting stronger.