Gold Price Futures (GC) Technical Analysis – Trigger Point for $20 Upside Spike is $1246.30
Gold is trading higher early Thursday as investors watch the stock market rout continue in the Asian session. In these types of matters, gold is not an investment, it is a safe-haven asset. That’s why buyers are being cautious. However, the slow and steady climb that has chewed through numerous resistance levels has put the market in a position to breakout to the upside with several potential upside targets coming in $20 and $30 above the current price.
At 0329 GMT, December Comex Gold is trading $1240.10, up $9.00 or +0.72%.
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Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through $1243.00 will signal a resumption of the uptrend. This is followed closely by another main top at $1244.70. The next target above this level expands all the way up to $1278.20.
The trend is in no danger of turning down. A closing price reversal top will be the first sign that the selling is greater than the buying at current price levels.
The main range is $1278.20 to $1167.10. Its retracement zone is $1222.70 to $1235.80. This zone is controlling the longer-term direction of the market. Trading above it is helping to give the market an upside bias.
The next key retracement zone is $1246.30 to $1264.90, followed by a 50% level at $1277.50.
The short-term range is $1184.30 to $1243.00. If $1222.70 fails as support then look for the selling to extend into its retracement zone at $1210.60 to $1204.40.
Daily Swing Chart Technical Forecast
Based on the early price action, the direction of the December Comex Gold futures market is likely to be determined by trader reaction to the Fibonacci level at $1235.80.
Bullish Scenario
A sustained move over $1235.80 will indicate the presence of buyers. Taking out $1243.00 will indicate the buying is getting stronger with the next target the July 23 main top at $1244.70. This is followed closely by the 50% level at $1246.30.
We could see a technical bounce on the first test of $1246.30, but if it is taken out, we could see an acceleration to the upside with the Fibonacci level at $1264.90 the next upside target, followed by a 50% level at $1277.50 and a main top at $1278.20.
Bearish Scenario
A sustained move under $1235.80 will signal the presence of sellers. This won’t change the main trend to down, but it could trigger a hard break with $1222.70 the next likely target. This price is another trigger point for an acceleration into $1210.60 to $1204.40.