Comex Gold Futures (GC) Technical Analysis – April 26, 2017 Forecast

June Comex Gold futures are trading lower shortly before the regular session opening. The market is trying to recover from early session weakness. The early selling stopped on a test of a major uptrending angle. The current chart pattern suggests there is plenty of room to the downside, but the next rally is likely to be labored because of a series of potential resistance levels.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the top on April 17 at $1297.40.

On the downside, support is a Fib level at $1262.90.

On the upside, resistance is closely layered at $1267.00, $1269.40 and $1272.60. The market could expand to the upside if $1272.60 is taken out with $1281.70 to $1285.40 the next likely target.

The major range is $1198.00 to $1297.40. If there is a steep sell-off then its retracement zone at $1247.70 to $1236.00 will become the primary downside target.

Forecast

Based on the current price at $1265.50 and the earlier price action, the direction of the gold market the rest of the session is likely to be determined by trader reaction to the long-term uptrending angle at $1262.00.

A sustained move over $1262.00 will indicate that buyers are coming in to support the market on this break. However, buying volume must continue to increase or the move will fail. Standing in the way of a breakout to the upside are a series of levels at $1267.00, $1269.40 (an actual resistance cluster), and $1272.60.

Look for the rally to expand over $1272.60 with the next major target coming in at $1281.70.

Look out to the downside if $1262.00 fails as support. The chart pattern suggests we could see a steep break with the next targets $1248.20 and $1247.70.

Simply stated, look for a strong upside bias over $1272.60 and a downside bias under $1262.00. Expect a choppy, two-sided trade if prices get locked between the two levels.