Comex Gold Futures (GC) Technical Analysis – July 26, 2016 Forecast
A weaker U.S. Dollar is helping to underpin December Comex Gold futures shortly before the regular session opening. This news may help the market finally confirm last week’s closing price reversal bottom. This will occur on a trade through $1342.00.
The main trend is up according to the daily swing chart. However, momentum has been to the downside since July 6. This makes the market ripe for a follow-through rally, following last week’s closing price reversal bottom at $1318.50.
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The intermediate range is $1259.10 to $1384.40. Its retracement zone is $1321.80 to $1307.00. This zone stopped the break last week when the market reversed at $1318.50.
The new short-term range is $1384.40 to $1318.50. If gold can break out to the upside then its retracement zone at $1351.50 to $1359.20 will become the primary upside target.
Based on Monday’s close at $1327.20 and the earlier price action, look for an upside bias to develop on a rally over the downtrending angle at $1328.40 and a downside bias to develop on a sustained move under the 50% level at $1321.80.
If there is a rally over $1328.40 then look for a possible acceleration to the upside with potential targets at $1342.00 and $1343.10. Overtaking $1342.00 will confirm the closing price reversal bottom. Crossing to the strong side of the angle at $1343.10 will put the market in a bullish position with $1351.50 the next major upside target.
A sustained move under $1321.80 will signal the presence of sellers. The next target is the reversal bottom at $1318.50. Taking out this level will negate the chart pattern. This could trigger an acceleration into the Fib level at $1307.00.
Based on the current price at $1327.60, it looks as if buyers will go after the downtrending angle at $1328.40 on the opening so be prepared for an early uptrend.