Comex Gold Futures (GC) Technical Analysis – April 27, 2017 Forecast

June Comex Gold futures are holding steady, but the tone of the market seems negative. Investors are currently battling liquidation caused by increasing demand for higher risk assets. Additionally, investors are also reacting to the elimination of several factors that had been providing support throughout the year. These include the French election, President Trump’s ability to run a government and escalating tension with North Korea.

Technical Analysis

The main trend is up according to the daily swing chart, but momentum is trending lower. The next major downside target is a main bottom at $1248.20. The nearest resistance is the $1297.40 main top.

Gold is currently being influence by a number of retracement levels at $1262.90. $1267.00, $1269.40 and $1272.80. These levels have provided both support and resistance throughout the week.

If buyers can take out $1272.80 then look for a possible rally into the short-term retracement zone at $1279.00 to $1283.40.

If $1262.90 fails as support then we could see an eventual test of the major retracement zone at $1247.70 to $1236.00.

Forecast

Based on the current price at $1264.40, the direction of the gold market today is likely to be determined by trader reaction to the major uptrending angle at $1264.00.

A sustained move over $1264.00 will indicate the presence of buyers. The rally will be labored at first, but once it gets rolling, we could see a drive into the downtrending angle at $1281.40.

A sustained move under $1264.00 will signal the presence of sellers. The daily chart is wide open under this angle so we could see an acceleration to the downside with potential targets $1248.20 and $1247.70. If the selling pressure continues to build then look for the break to extend into $1236.00 and $1231.00.

Watch the price action and read the order flow at $1264.00 all session. Trader reaction to this angle will tell us if the buyers or sellers are in control.