Gold Price Futures (GC) Technical Analysis – Strengthens Over $1949.40, Weakens Under $1931.70

Gold futures are trading lower at the mid-session after posting a mostly mixed performance earlier in the session. Buyers seem a little tentative despite a reversal to the downside by the U.S. Dollar against a basket of currencies and lower Treasury yields. Traders also showed little reaction to the disappointing Weekly U.S. Initial Claims report which came in higher than expected.

At 16:50 GMT, December Comex gold is trading $1950.10, down $20.20 or -1.03%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $2024.60 will signal a resumption of the uptrend. A move through $1874.20 will change the main trend to down.

The formation of the secondary lower top at $2024.60 suggests the selling may be greater than the buying at current price levels.

The short-term range is $2089.20 to $1874.20. Its retracement zone at $1981.70 to $2007.10 is potential resistance. This area essentially stopped the rally at $2024.60 on Tuesday.

The minor range is $1874.20 to $2024.60. Its retracement zone at $1949.40 to $1931.70 is new support. This area stopped the selling earlier today.

The main range is $1690.10 to $2089.20. Its retracement zone at $1889.70 to $1842.60 is major support. This area stopped the selling at $1874.20 on August 12.

Short-Term Outlook

Based on the early price action, the direction of the December Comex gold market into the close is likely to be determined by trader reaction to $1949.40 to $1931.70.

Bullish Scenario

A sustained move over $1949.40 will indicate the presence of buyers. If this move creates enough upside momentum then look for a potential rally into the next 50% level at $1981.70.

Bearish Scenario

A sustained move under $1931.70 will signal the presence of sellers. If this move generates enough downside momentum then look for a possible break into the major 50% level at $1889.70. #gold##ForexForecast##BearishSentiment#

Reprinted from FXEmpire，the copyright all reserved by the original author.