Gold Price Futures (GC) Technical Analysis – $1889.70 Could Be Trigger Point for Surge into $1917.40
Gold futures are trading nearly flat early Tuesday, basically mirroring the price action of the U.S. Dollar index. Volume is a little on the light side despite a strong performance the previous sessions. The low volume and volatility could be a function of dampened expectations of a timely fiscal stimulus deal and general uncertainty ahead of Tuesday evening’s Presidential debate.
At 08:27 GMT, December Comex gold futures are trading $1887.40, up $5.10 or 0.27%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart, however, momentum is trending higher following the confirmation of the closing price reversal bottom on September 24.
A trade through $1851.00 will negate the closing price reversal bottom and signal a resumption of the downtrend. The main trend will change to up on a move through the last swing top at $1983.80.
The main range is $1690.10 to $2089.20. Its retracement zone is $1889.70 to $1842.60. This zone is controlling the near-term direction of the market. Gold traders have been trying to form a support base inside this zone the last four sessions.
The minor range is $1983.80 to $1851.00. Its 50% level at $1917.40 is the next upside target.
The short-term range is $2089.20 to $1851.00. Taking out the first pivot could drive the market into its retracement zone at $1970.10 to $1998.20.
Daily Swing Chart Technical Analysis
Based on the early price action, the direction of the December Comex gold futures contract on Tuesday is likely to be determined by trader reaction to the main 50% level at $1889.70.
Bullish Scenario
A sustained move over $1889.70 will indicate the buying is getting stronger. This could trigger a rally into the minor 50% level at $1917.40.
Bearish Scenario
A sustained move under $1889.70 will signal the presence of sellers. The first minor target is $1871.70. This is followed by the support cluster at $1851.00 to $1842.60.
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This article was originally posted on FX Empire
