Gold Price Futures (GC) Technical Analysis – November 21, 2017 Forecast
December Comex Gold futures are trading higher shortly before the U.S. opening. There was no follow-through to the downside after yesterday’s steep break. The price action suggests investor indecision.
Stocks are up and the U.S. Dollar is trading higher so perhaps thin trading conditions are playing a role in today’s early move. Perhaps investors feel that yesterday’s sell-off was overdone. Traders may be reacting to renewed concerns over North Korea and political issues in Germany.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The trend turned up on Friday when prices reached $1297.50. However, there has been no follow-through to the upside which suggests the move may have been fueled by buy stops rather than new buying.
A trade through $1269.70 will change the main trend to down. This could trigger a further break into a series of bottoms at $1263.80, $1262.80 and the August 8 bottom at $1257.10.
The short-term range is $1269.70 to $1297.50. Its retracement zone is $1283.60 to $1280.30. The market is currently trading on the weak side of this zone, giving the market a downside bias.
Daily Technical Forecast
Based on the current price at $1279.10 and the earlier price action, the direction of the gold market today is likely to be determined by trader reaction to the short-term Fibonacci level at $1280.30.
A sustained move under $1280.30 will signal the presence of sellers. If this creates enough downside momentum then look for a quick move to $1269.70.
A sustained move over $1280.30 will indicate the presence of buyers. This is followed by the 50% level at $1283.60. This price is a possible trigger point for an acceleration into a major 50% level at $1290.00. This is followed by a resistance cluster at $1296.40 to $1297.50.
Based on yesterday’s range, one can see the effect below average volume can have on a market’s volatility. It can just as easily rally the same amount today.
This article was originally posted on FX Empire
