Gold Price Futures (GC) Technical Analysis – Trader Reaction to Pivot at $1232.90 Will Set the Tone Today

December Comex Gold futures finished higher on Tuesday after buyers rejected an attempt by sellers to reach a new low for the year. The catalyst behind the move was a rebound in the Chinese Yuan against the U.S. Dollar. The Chinese currency rose after a report said that the U.S. and China were trying to restart negotiations to defuse a trade war.

 Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum may have shifted to the upside with the formation of a closing price reversal bottom on Tuesday.

The main trend will change to up on a trade through $1244.70. A trade through $1222.60 will negate the reversal bottom and a move through $1221.00 will signal a resumption of the downtrend.

A trade through $1237.80 will confirm Tuesday’s closing price reversal bottom. It will also shift momentum to the upside. If it generates enough upside momentum, buyers may even take a shot at $1244.70.

The short-term range is $1221.00 to $1244.70. Its 50% level or pivot at $1232.90 is controlling the near-term direction of the market.

The main range is $1278.20 to $1221.00. Its retracement zone at $1249.60 to $1256.40 is the primary upside target.

Daily Swing Chart Technical Forecast

The market closed on Tuesday at $1232.90. This is also the same price as the pivot controlling its near-term direction.

A sustained move over $1232.90 will indicate the presence of buyers. If this move generates enough upside momentum then look for buyers to go after yesterday’s high at $1237.80. Taking out this level will confirm the reversal bottom and shift momentum to the upside. This could drive the market into the main top at $1244.70.

Taking out $1244.70 will change the trend to up. This could lead to a test of $1249.60 to $1256.40.

A sustained move under $1232.90 will signal the presence of sellers. If the selling volume increases on this move then look for a drive into $1222.60 then $1221.00. The latter is the trigger point for an acceleration to the downside.