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Gold Price Futures (GC) Technical Analysis – Testing Intermediate 50% Level

By:
James Hyerczyk
Published: Sep 7, 2018, 05:16 UTC

Based on the early price action, the direction of the December Comex Gold futures contract is likely to be determined by trader reaction to the intermediate 50% level at $1205.90.

Comex Gold

Gold futures are trading slightly better early Friday on low volume. Most traders are on the sidelines ahead of the possible announcement of new tariffs by the United States on China, and the release of the latest U.S. Non-Farm Payrolls report at 1230 GMT.

AT 0451 GMT, December Comex Gold futures are trading $1206.90, up $2.60 or +0.22%.

Comex Gold
Daily December Comex Gold

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through $1220.70 will signal a resumption of the uptrend. The main trend changes to down on a trade through $1189.50.

The minor trend is down. A trade through $1195.10 will indicate the selling is getting stronger. A move through $1214.90 will change the minor trend to up and shift momentum back to the upside.

The short-term range is $1167.10 to $1220.70. Its retracement zone at $1193.90 to $1187.60 is support.

The intermediate range is $1278.20 to $1167.10. Gold is currently testing its retracement zone at $1205.90 to $1215.10.

The main range is $1278.20 to $1167.10. Its retracement zone at $1222.70 to $1235.80 is the primary upside target.

Comex Gold
Daily December Comex Gold (Close-Up)

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December Comex Gold futures contract is likely to be determined by trader reaction to the intermediate 50% level at $1205.90.

A sustained move over $1205.90 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to extend into the Fib level at $1215.10. This is followed by the main top at $1220.70 and the main 50% level at $1222.70.

The latter is a potential trigger point for an acceleration to the upside with $1235.80 the next likely upside target.

A sustained move under $1205.90 will signal the presence of sellers. If this level is hit with high volume selling then look for a break into the minor bottom at $1195.10 and the short-term 50% level at $1193.90.

Additional support is clustered at $1189.50 to $1187.60.

The trigger point for an acceleration to the downside is $1187.60.

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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