December Comex Gold is trading lower shortly before the regular session opening. The selling is continuing after Wednesday's sell-off was triggered by a surprisingly hawkish U.S. Federal Reserve monetary policy statement.
Daily Technical Analysis
The main trend is down according to the daily swing chart. The trend turned down on a move through $1302.30 on Wednesday. Today is the ninth day down from the $1362.40 main top. This puts the market in a position to post a potentially bullish closing price reversal bottom. This chart pattern will not mean the trend is turning to up, but it may be necessary to alleviate some of the selling pressure.
Based on the current price at $1296.50 and the earlier price action, the direction of the gold market today is likely to be determined by trader reaction to the uptrending angle at $1299.30.
A sustained move under $1299.30 will indicate the selling is getting stronger. This could drive the market into the next uptrending Gann angle at $1290.30. This is the last support angle before the $1281.30 main bottom.
A sustained move over the uptrending angle at $1299.30 will signal the return of buyers. They can create enough upside momentum, they could trigger a rally into a pair of uptrending angles at $1315.10 and $1317.30. Overcoming the angles will put gold in a position to challenge the major 50% level at $1321.90.
Look for a bullish tone to develop on a sustained move over $1299.30 and for a bearish tone to develop under this same angle.
This article was originally posted on FX Empire
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