Yahoo Finance Gold Price Futures (GC) Technical Analysis – Setting Up for Volatile Breakout
Gold futures are trading slightly higher early Tuesday after finishing lower on Monday due to a spike to the upside by the U.S. Dollar. Traders have been looking for clues as to the next major move after rallying to a multi-month high over a week ago. However, a mixed trade by U.S. Treasurys and U.S. equity futures has encouraged many gold traders to take a “wait-and-see” approach.
At 0252 GMT, December Comex Gold futures are trading $1226.50, up $1.90 or +0.16%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through $1236.90 will signal a resumption of the uptrend with $1244.70 the next upside target. The main trend will change to down on a trade through $1184.30.
The main range is $1278.20 to $1167.10. Its retracement zone at $1222.70 to $1235.80 is controlling the near-term direction of the market. Gold has been trading inside this zone for nine consecutive sessions.
The next resistance zone is $1246.30 to $1264.90.
The short-term range is $1184.30 to $1236.90. Its retracement zone at $1210.60 to $1204.40 is the primary downside target. Since the main trend is up, look for buyers to come in on a test of this zone.
Daily Swing Chart Technical Forecast
Based on yesterday’s close at $1224.60 and the early price action, the direction of the December Comex Gold futures contract is likely to be determined by trader reaction to the main 50% level at $1222.70.
A sustained move over $1222.70 will indicate the presence of buyers. If this creates enough upside momentum then look for a potential rally into $1235.80 to $1236.90.
Overcoming $1236.90 could trigger a breakout into $1244.70 to $1246.30. The latter is the trigger point for a steep rally with $1264.90 the next target.
A sustained move under $1222.70 will signal the presence of sellers. This is a potential trigger point for an acceleration to the downside with the next target $1210.60 to $1204.40. Watch for buyers on the first test of this zone.
This article was originally posted on FX Empire
