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Gold Price Futures (GC) Technical Analysis – Strengthens Over $1757.40, Weakens Under $1738.60

By:
James Hyerczyk
Published: Sep 27, 2021, 17:10 GMT+00:00

The direction of the December Comex gold futures market into the close is likely to be determined by trader reaction to $1757.40 and $1738.60.

Comex Gold

Gold futures are inching higher shortly after the New York session on Monday despite a rise in Treasury yields and the U.S. Dollar. An overnight reversal to the downside in the U.S. stock indexes may be helping to underpin prices, but more than likely, the market may have found a sweet spot on the chart where it is neither too bullish nor two bearish.

At 16:52 GMT, December Comex gold futures are trading $1752.80, up $1.10 or +0.06%.

Daily December Comex Gold

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1737.50 will signal a resumption of the downtrend. A move through $1788.40 will change the main trend to up.

The short-term range is $1677.90 to $1836.90. Gold is currently trading inside its retracement zone at $1757.40 to $1738.60.

The minor range is $1788.40 to $1737.50. Its 50% level or pivot at $1762.90 is the first upside target.

The strongest resistance are is a series of 50% levels at $1787.20, $1795.00 and $1800.00.

On the downside, the major support is a long-term Fibonacci level at $1716.00.

Daily Swing Chart Technical Forecast

The direction of the December Comex gold futures market into the close on Monday is likely to be determined by trader reaction to $1757.40 and $1738.60. The upside potential seems to be a little more limited than the downside potential.

Bullish Scenario

A sustained move over $1757.40 will indicate the presence of buyers. The first upside target is $1762.90.

Taking out $1762.90 could trigger an acceleration into a resistance cluster at $1787.20 to $1788.40. This is followed by a pair of major 50% levels at $1795.00 to $1800.00.

Bearish Scenario

A sustained move under $1757.40 will be the early sign of weakness. This could trigger a break into $1738.60 to $1737.50.

A failure to hold $1737.50 could trigger an acceleration into the major Fibonacci level at $1716.00.

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About the Author

James Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement. He is the author of two books on technical analysis and has a background in both futures and stock markets.

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