Comex Gold Futures (GC) Technical Analysis – August 5, 2014 …

Comex Gold Futures (GC) Technical Analysis – August 5, 2014 …

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After two days of consolidation inside a major retracement zone, December Comex Gold futures weakened on Monday. The significance of the move is that it identified the key area buyers will have to take out in order to put gold in a position to challenge the recent main top and perhaps change the trend to up.

Daily December Comex Gold

The main range is $1241.70 to $1347.50. The retracement zone created by this range is $1294.60 to $1282.10. Over the past three days, the market has straddled this zone and in particular the 50% level at $1294.60.

The minor range is $1314.60 to $1281.00. Its retracement zone at $1297.80 to $1301.80 is a potential upside target and possible resistance zone. Since the main trend is down on the daily chart, traders are likely to defend this zone on the first test. This zone is standing in the way of a test of and a possible breakout over $1314.60, and a resumption of the downtrend.

A failure to overcome resistance is likely to mean another test of the uptrending angle at $1284.70, the Fibonacci level at $1282.10 or last week’s low at $1281.00. If the last price is violated with conviction then the daily chart indicates this market has the potential to break to the next uptrending angle at $1263.20 today.

Besides the retracement zone at $1297.80 to $1301.80, gold faces another potential resistance target at $1298.60. Overcoming $1301.80 could trigger a move into $1306.60. This is followed by an angle at $1313.50 and the main top at $1314.60.

Look for a firm market on a sustained move over $1294.60, however, the rally may be labored because of the number of levels the market has to chew through. Watch for sideways action if $1294.60 fails and $1282.10 holds as support. Finally, there could be a steep acceleration to the downside with $1263.20 a potential target if $1282.10 is taken out with conviction.

 

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Comex Gold Futures (GC) Technical Analysis – August 5, 2014 …

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