Gold Price Futures (GC) Technical Analysis – Weak Momentum Could Trigger Retest of $1800.00 – $1795.00 Pivots
Gold futures are inching higher early Tuesday after prices slipped the previous session after reaching its highest level since August 4 the previous session. Traders seemed to shrug off a weaker U.S. Dollar and a dip in Treasury yields, while showing early caution ahead of Friday’s U.S. Non-Farm Payrolls report.
At 0:46 GMT, December Comex gold futures are trading $1814.00, up $1.80 or +0.10%.
Economists polled by Dow Jones expect 750,000 jobs were created in August and the unemployment rate fell to 5.2%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. However, Monday’s minor reversal top suggests the selling may be greater than the buying at current price levels.
A trade through $1826.50 will signal a resumption of the uptrend. A move through $1781.30 will change the main trend to down.
The market is currently trading inside a short-term retracement zone, making the 50% level at $1800.00 new support and the 61.8% level at $1828.80 new resistance.
Additional support is the long-term 50% level at $1795.00, followed by another retracement zone $1777.50 to $1758.50.
Daily Swing Chart Technical Forecast
The direction of the December Comex gold futures contract on Tuesday is likely to be determined by trader reaction to $1810.00.
Bullish Scenario
A sustained move over $1810.00 will indicate the presence of buyers. The first upside target is $1818.30. This is followed by $1826.50 and a Fibonacci level at $1828.80.
Overtaking $1828.80 will put the market on the strong side of a key retracement zone with the next targets a pair of tops at $1837.50 and $1839.00.
Bearish Scenario
A sustained move under $1810.00 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into a pair of 50% levels at $1800.00 to $1795.00. Since the main trend is up, look for buyers on the first test of this area.
A failure to hold $1795.00 could trigger an acceleration into a pair of main bottoms at $1781.30 to $1774.60. Taking out these levels will change the main trend to down.
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This article was originally posted on FX Empire