Gold Price Futures (GC) Technical Analysis – November 28, 2018 Forecast
Gold futures are under pressure shortly after the regular session opening, but the market is trading inside yesterday’s range, suggesting investor indecision ahead of today’s U.S. GDP report and a speech by Fed Chair Jerome Powell at 1700 GMT. GDP is expected to come in at 3.6%, up slightly from the last report. Traders are hoping Powell discusses monetary policy and the pace of future rate hikes. He’s probably going to say that the central bank will continue to raise rates gradually and that their rate hikes will be “data dependent”.
At 1718 GMT, February Comex Gold is trading $1219.10, down $0.80 or -0.07%.
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Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart, however, momentum is trending lower. The secondary lower top at $1236.70 is another sign of increased selling pressure. The main trend will change to down on a trade through $1202.40.
The minor trend is down. This is why momentum is trending lower. A trade through $1236.70 will change the minor trend to up. This will also shift momentum to the upside.
The main range is $1190.00 to $1252.00. Its retracement zone at $1221.00 to $1213.70 is currently being tested. Inside this area is a short-term retracement zone at $1219.60 to $1215.50.
Combining the two retracement zones creates potential support clusters at $1221.00 to $1219.60 and $1215.50 to $1213.70.
The intermediate range is $1252.00 to $1202.40. Its retracement zone at $1227.20 to $1233.10 is resistance. This area provided resistance over the last week.
Daily Swing Chart Technical Forecast
Based on the early trade, the direction of the December Comex Crude Oil futures contract today is likely to be determined by trader reaction to a pair of 50% levels at $1221.00 and $1219.60.
Bullish Scenario
A sustained move over $1221.00 will indicate the presence of buyers. If this move generates enough upside momentum then we could see a rally into the 50% level at $1227.20.
Bearish Scenario
A sustained move under $1219.60 will signal the presence of sellers. This move could create the downside momentum needed to drive the market into a pair of Fibonacci levels at $1215.50 and $1213.70.
Taking out $1213.70 with conviction could trigger an acceleration to the downside with $1202.40 the next major downside target.