Gold Price Futures (GC) Technical Analysis – Triangle Chart Pattern Indicates Impending Volatility

Gold futures are trading slightly higher, but inside a tight range for the sixth straight trading decision. The price action suggests investor indecision and impending volatility. Helping to hold the market inside a range since October 11 is the lack of clarity over Brexit. The good news is, some of the uncertainty may clear up this week when the U.K. parliament votes again on the matter. In the meantime, gold traders are keeping their powder drive until they get some news they can react to with conviction.

At 14:36 GMT, December Comex gold futures are trading $1494.00, up $0.10 or +0.01%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1478.00 will signal a resumption of the downtrend. A move through $1465.00 will reaffirm the downtrend. The main trend will change to up on a move through $1522.30.

The market has been trading inside a range since October 11. Its high at $1508.00 and its low at $1478.00 should also be considered potential breakout levels.

The price action is also being controlled by a pair of 50% levels at $1489.40 and $1495.40. Another 50% level comes in at $1504.20. The widest range is being formed by a 50% level at $1515.60 and a Fibonacci level at $1471.00.

Daily Technical Forecast

Based on the early price action and the current price at $1494.00, the direction of the market the rest of the session on Friday is likely to be determined by trader reaction to the uptrending Gann angle at $1493.00.

Bullish Scenario

A sustained move over $1493.00 will indicate the presence of buyers. However, look for a labored rally because of a series of potential resistance levels including a 50% level at $1495.40, a downtrending Gann angle at $1500.20, a 50% level at $1504.20 and another downtrending Gann angle at $1505.30.

The Gann angle at $1504.30 is the trigger point for a potential acceleration to the upside with the next target a 50% level at $1515.60.

Bearish Scenario

A sustained move under $1493.00 will signal the presence of sellers. This is followed by a 50% level at $1489.10. This is a potential trigger point for an acceleration to the downside with the next targets an uptrending Gann angle at $1479.00 and a low at $1478.00.

Side Notes

If you strip out the 50% levels then the trigger point for an acceleration to the upside is $1505.30 and the trigger point for an acceleration to the downside is $1493.00.