December Gold Futures: Will We Revisit This Week’s GAP?
Shain Vernier • 1 min read
December gold futures have taken an interesting path over the course of this week’s trade. On Monday, I outlined the probability that the gap down on open would be tested and ultimately filled in. Thus far, that call has not come to fruition.
However, there have been some great gold trading signals from my colleague Arslan. Congrats to all who followed and harvested some pips from the market!
So, will December gold futures test the gap? As of now, the jury is still out. But, we are nearing some key support levels that may serve as a launch pad to the bull.
December Gold Futures, Daily Chart
A few technical aspects to be aware of:
Monday’s gap 1341.5 to 1347.1
62% Fibonacci retracement at 1325.3
78% Fibonacci retracement at 1315.5
20 Day EMA 1320.8
Bollinger Band mid point at 1315.8
Bottom line: If this market is going to rally, it will be from the outlined resistance zone on the chart. As of now, buying in blindly is far too expensive a proposition given our risk management parameters.
However, there may be an opportunity to make a few bucks in the coming sessions. If we confirm failure in the resistance zone, then coming economic data releases are likely to provide the action needed to drive price north from here.
Today’s close will be crucial to the rest of the week’s trade. As the ranges set up on the daily chart, I will be in a better position to trade this market wisely.