Gold Price Futures (GC) Technical Analysis – Trade Through $1291.60 Confirms Closing Price Reversal Bottom

Following a prolonged move down in terms of price and time on the daily chart, December Comex Gold posted a potentially bullish closing price reversal bottom.

This chart pattern doesn’t mean the trend is getting ready to turn up, but it does indicate the buying may be greater than the selling at current price levels.

This particular closing price reversal bottom took place inside a major retracement zone, suggesting investors may have been looking for value.

Swing Chart Analysis

The main trend is down according to the daily swing chart. The series of lower tops and lower bottoms is proof of this. A trade through $1317.10 will change the main trend to up.

Yesterday’s closing price reversal bottom occurred at $1280.40. Taking out this level will negate the chart pattern and signal a resumption of the selling. This could lead to a test of the next two bottoms at $1272.70 and $1257.10.

The main range is $1211.10 to $1362.40. Its retracement zone is $1286.80 to $1268.90. Yesterday’s reversal bottom at $1280.40 occurred inside this retracement zone.

Crossing to the strong side of the 50% level at $1286.80 will indicate the presence of short-covering.

Closing Price Reversal Bottom Analysis

Taking out $1291.60 will confirm the closing price reversal bottom. The first upside objective is the short-term retracement zone at $1298.80 to $1303.10.

Changing the trend to up on a trade through $1317.10 will likely lead to a test of another retracement zone at $1321.40 to $1331.10.

We’re going to be watching the price action and order flow at $1291.60 all session because this is the potential trigger point for an acceleration to the upside.

A failure to overcome $1291.60 will indicate that the buying is weak and that the market may have to form a support base inside $1286.80 to $1268.90 before moving higher.