Forecast on Index Futures

Gold forecast and trade plan for 12/02/16

Gold dipped to 1163, then shot higher to 1176 before hitting 1180.

There is volatility around the important support at 1173~1172. The “push lower” but “closing unchanged” is not so negative while considering an “Oversold” market condition. Bulls must force a weekly close above 1173 for a chance of recovery next week. A close below 1170 is more negative in the bear trend.

For the upside story today, Gold holding above 1173 allows a recovery to minor resistance at 1177/78. Above 1182 signals further gains to 1188/89 and the best chance of a high for the day. Shorts need stops above 1192. A break higher is positive therefore targeting 1195, 1197/98 and an excellent selling opportunity at 1203/05.

Holding below 1171 is more negative and targets 1168, 1164/63 then the 1161/60 low. This is not a good support and further losses target 1157 then 1147/46.

Daily Chart

gc-daily-12-02-16

 

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