Gold Price Futures (GC) Technical Analysis – November 16, 2017 Forecast
December Comex Gold futures are trading lower shortly ahead of the regular session opening. The market is rangebound. Concerns over tax reform and its impact on demand for higher risk assets is helping to underpin the market. Keeping a lid on gold prices are expectations of a Fed rate hike in December and possibly three in 2018.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The trend turned up on Wednesday when buyers took out the previous top at $1289.50. There wasn’t much of a follow-through rally and the subsequent pullback suggests the move was likely fueled by buy stops rather than new buying.
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The main range is $1317.10 to $1262.80. Its retracement zone at $1290.00 to $1296.40 is acting like resistance. Its lower or 50% level at $1290.00 stopped the rally on Wednesday. This zone is controlling the longer-term direction of the market.
The short-term range is $1263.80 to $1290.00. Its 50% level or pivot is $1276.90. The market is currently straddling this level.
Daily Technical Forecast
Based on the early price action, the direction of the gold market today is likely to be determined by trader reaction to the uptrending angle at $1277.80 and the short-term pivot at $1276.90.
A sustained move over $1277.80 will indicate the presence of buyers. If this move creates enough upside momentum then look for a possible rally into a pair of downtrending angles at $1284.50 and $1285.40.
The angle at $1284.50 is the trigger point for a possible acceleration into $1290.00.
A sustained move under $1276.90 will signal the presence of sellers. If this move generates enough downside momentum then look for a test of the next uptrending angle at $1270.80. This angle stopped the price slide on Tuesday.
If it fails then look for a move into the next uptrending angle at $1267.30. This is the last potential support angle before the $1263.80 main bottom.