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Gold Price Futures (GC) Technical Analysis – Weekly Chart Strengthens Over $1220.10, Weakens Under $1207.10

By:
James Hyerczyk
Updated: Sep 4, 2018, 08:24 UTC

Based on last week’s close at $1206.70, the direction of the December Comex Gold market this week is likely to be determined by trader reaction to the long-term uptrending Gann angle at $1207.10.

Comex Gold

December Comex Gold futures finished lower last week while consolidating for a second week inside the $1221.40 to $1167.10 range from the week-ending August 17. The price action was primarily driven by the direction of the U.S. Dollar. However, more importantly, hedge funds and money managers reduced their net short positions for the first time in a month. This may be an early sign of a bottom.

Comex Gold
Weekly December Comex Gold

Weekly Technical Analysis

The main trend is down according to the weekly swing chart. A trade through $1167.10 will signal a resumption of the downtrend. This could lead to a test of the December 16, 2016 main bottom at $1162.00.

The market is in no position to change the main trend to up. The same goes for the minor trend, which is also down. However, taking out $1221.40 could have the same effect as a breakout to the upside because this high has limited gains the last two weeks. The current inside trading weeks tend to indicate investor indecision and impending volatility.

The first major upside target area is a long-term retracement zone at $1250.60 to $1277.70.


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Weekly Technical Forecast

Based on last week’s close at $1206.70, the direction of the December Comex Gold market this week is likely to be determined by trader reaction to the long-term uptrending Gann angle at $1207.10.

A sustained move over $1207.10 will indicate the presence of buyers. This could trigger a rally into the steep downtrending Gann angle at $1220.10. This angle, moving down $4.00 per week from the $1388.10 main top the week-ending April 13, has been guiding gold prices lower for 21 weeks.

We could see a technical bounce on the first test of $1220.10, but if it’s taken out, we could see an acceleration to the upside with $1250.60 the next likely target. This is the trigger point for another acceleration into $1277.70. This price is 50% of the long-term range.

A sustained move under $1207.10 will signal the presence of sellers. This could trigger a steep break into the next long-term uptrending Gann angle at $1185.10. This is the last potential support angle before the $1167.10 low and the $1162.00 main bottom.

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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