Gold futures are trading higher shortly before the regular session opening. A weaker U.S. Dollar is underpinning the market. Rising U.S. Treasury yields may be capping gains.
At 1119 GMT, December Comex Gold is trading $1207.60, up $4.70 or +0.40%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top at $1218.00 on September 13.
A trade through $1218.00 will negate the reversal top and signal a resumption of the uptrend. The main trend will change to down on a trade through $1192.70.
The main range is $1244.70 to $1167.10. Its retracement zone at $1205.90 to $1215.10 is controlling the near-term direction of the market and acting like resistance.
The short-term range is $1167.10 to $1220.70. Its retracement zone at $1193.90 to $1187.60 is the primary downside target and support.
Daily Technical Forecast
Based on the early price action, the direction of the December Comex Gold market today is likely to be determined by trader reaction to the 50% level at $1205.90.
A sustained move over $1205.90 will indicate the presence of buyers. If this move can generate enough upside momentum then look for the rally to extend into an uptrending Gann angle at $1213.10, followed by a Fibonacci level at $1215.10.
The trigger points for an upside breakout are a pair of main tops at $1218.00 and $1220.70.
A sustained move under $1205.90 will signal the presence of sellers. The first target angle drops in at $1190.10. This is a potential trigger point for an acceleration to the downside with $1193.90 to $1187.60 the main target.
This article was originally posted on FX Empire
More From FXEMPIRE:
- NZD/USD Forex Technical Analysis – September 19, 2018 Forecast
- E-mini Dow Jones Industrial Average (YM) Futures Analysis – September 19, 2018 Forecast
- DAX Index Price Forecast – DAX to Move Range Bound Today on Widening US-DE Bond Spread Difference
- AUD/USD Forex Technical Analysis – September 19, 2018 Forecast
- Gold Price Futures (GC) Technical Analysis – September 19, 2018 Forecast
- Important CHF Pairs’ Technical Update: 19.09.2018