Yahoo Finance Gold Price Futures (GC) Technical Analysis – Extended Sideways Trade Indicates Investor Indecision, Impending Volatility
Gold finished higher last week, but well off its high after an attempt to breakout to the upside failed to attract enough buyers to extend the rally. The U.S. Dollar and U.S. Treasury yields controlled the price action last week. They were driven by in two-directions by U.S. economic data and U.S.-China trade issues.
For the week, December Comex Gold settled at $1201.10, up $0.70 or +0.06%.
Weekly Technical Analysis
The main trend is down according to the weekly swing chart. However, downside momentum has slowed since the week-ending August 17. Four weeks of sideways, rangebound trading has also contributed to the loss in downside momentum.
The market has also been trading inside the wide range formed the week-ending August 17. This range is $1167.10 to $1221.40. A trade through $1167.10 will signal a resumption of the downtrend. A move through $1221.40 will not change the trend to up, but it could trigger a surge to the upside.
The main range is $1392.30 to $1167.10. Its retracement zone at $1250.00 to $1277.20 is the primary upside target.
The short-term range is $1167.10 to $1221.40. Its 50% level or pivot is $1194.30. This zone is controlling the near-term direction of the market.
Weekly Technical Forecast
Based on last week’s price action, the direction of the December Comex Gold futures contract is likely to be determined by trader reaction to the pivot at $1194.30.
A sustained move over $1194.30 will indicate the presence of buyers. The first upside target is a downtrending Gann angle at $1204.30. This is followed by a long-term uptrending Gann angle at $1208.00.
The daily chart starts to open up over $1208.00. If this move can create enough upside momentum then we could see a surge into $1221.40. This is a potential trigger point for an acceleration to the upside with $1250.00 the next key target.
A sustained move under $1194.30 will signal the presence of sellers. The first downside target is a long-term uptrending Gann angle at $1184.80. If this angle fails then look for gold to possibly plunge into its next targets at $1167.10 and $1162.00.
Basically, look for an upside bias to develop on a sustained move over $1208.00, and watch for a downside bias to develop on a sustained move under $1184.80.
This article was originally posted on FX Empire
