Gold Price Futures (GC) Technical Analysis – Major Pivot at $1489.10 Controlling Price Action
Gold is trading a little higher shortly before the regular session opening. The market is being underpinned by worries ahead of a crucial vote by the U.K. parliament on the Brexit agreement at 18:00 GMT. However, gains are being capped by positive comments over the progress being made in the trade talks between the United States and China.
At 11:46 GMT, December Comex gold is trading $1489.10, up $1.00 or +0.07%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. The main trend will change to up on a trade through $1522.30. A move through $1478.00 will signal a resumption of the downtrend. A trade though $1465.00 will reaffirm the downtrend.
The market has also been trading inside the October 11 range of $1508.00 to $1478.00 for the past seven sessions. This price action suggests investor indecision and impending volatility.
The market is currently testing a major retracement zone at $1489.10 to $1471.00.
On the upside, potential resistance is a serious of 50% levels at $1495.40, $1504.20 and $1515.60.
Daily Technical Forecast
Based on the early price action and the current price at $1489.10, the direction of the December Comex gold futures contract the rest of the session on Tuesday is likely to be determined by trader reaction to the main 50% level at $1489.10.
Bearish Scenario
A sustained move under $1489.10 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to possible extend into the uptrending Gann angle at $1480.00, followed closely by the low at $1478.00.
If $1478.00 fails as support then look for a break into the next uptrending Gann angle at $1472.50, followed by the main Fibonacci level at $1471.00. A trade through the main bottom at $1465.00 could trigger an acceleration to the downside.
Bullish Scenario
A sustained move over $1489.10 will signal the presence of buyers. This could trigger a labored really with potential resistance levels coming in at $1495.00, $1495.40, $1498.20, $1503.30 and $1504.20.
The 50% level at $1504.20 is a potential trigger point for an acceleration to the upside with the next target a 50% level at $1515.60.
This article was originally posted on FX Empire
