The strong close has put December Gold in a position to change the main trend to up on the daily chart. Based on the daily swing chart, a trade through 1681.50 will turn the main trend to up. In addition, a new main bottom has been formed at 1596.60.
December Gold is Poised to Break Out Over Swing Top at $1681.50.
The first upside target following the breakout will be the downtrending Gann angle at 1723.70. A steep uptrending Gann angle comes in at 1711.00 while Gann angle support is at 1623.00.
Based on the main range of 1923.70 to 1535.00, traders should look for a possible rally into the retracement zone at 1729.35 to 1775.22 once the Gann angle resistance is penetrated.
The red arrow indicates a resistance cluster on October 11 at 1711.00 to 1729.35. The market could turn in this zone following the first test. Profit-taking at this cluster could trigger a near-term break.
With the main trend up, traders will be encouraged to trade the long side as long as December Gold continues to make higher tops and higher bottoms.
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