December Gold Futures: Will We Revisit This Week’s GAP? - Forex News by FX Leaders

December Gold Futures: Will We Revisit This Week’s GAP?

Posted Wednesday, September 13, 2017 by
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!

Technical Outlook

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.

Gold DailyDecember 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.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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