Comex Gold Futures (GC) Technical Analysis – February 16, 2017 Forecast

April Comex Gold futures are trading higher, mirroring the move by the U.S. Dollar Index. The market is following through to the upside following yesterday’s closing price reversal bottom. A sudden drop in U.S. Treasury yields ignited the rally on Wednesday.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1246.60 will signal a resumption of the uptrend.

The main 50% level at $1235.60 and the minor 50% level at $1232.00 are key support levels today. Opening above these levels today will give gold an upside bias.

Forecast

Based on the current price at $1238.40 and the earlier price action, the direction of the gold market today is likely to be determined by trader reaction to the downtrending angle at $1240.60.

Taking out $1240.60 will indicate the presence of buyers. This could trigger a rally into the next downtrending angle at $1243.60. This is the last potential resistance angle before the $1246.60 main top.

Overtaking $1246.60 will not only reaffirm the uptrend, but it could put gold on a fast path to $1261.10.

A failure at $1240.60 will signal the presence of sellers. This could drive gold back into a cluster of numbers at $1235.60, $1234.60, $1233.50 and $1232.00.

The daily chart will open up to the downside on a move through $1232.00. This could trigger an acceleration into the next angles at $1225.50 and $1221.50.

Watch the price action at $1240.60 today. This will tell us if the buyers or sellers are in control.