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Comex Gold Futures (GC) Technical Analysis – January 19, 2017 Forecast

By:
James Hyerczyk
Published: Jan 19, 2017, 16:03 UTC

February Comex Gold is trading flat after breaking sharply on Wednesday in reaction to hawkish comments from Fed Chair Janet Yellen. Yellen basically said

Comex Gold Bars

February Comex Gold is trading flat after breaking sharply on Wednesday in reaction to hawkish comments from Fed Chair Janet Yellen. Yellen basically said the Fed could raise rates multiple times in 2017 and that the economy is slowing moving into the central bank’s target zones. This idea was supported by the U.S. consumer inflation report that come in at 0.3%, in line with expectations. More importantly, on an annualized basis, inflation rose above 2.0% for the first time since the summer of 2014 to 2.1%.

Due to Trump’s inauguration on Friday, volume is expected to be light today and the price action limited. However, investors should be aware of possible volatility spikes.

Comex Gold
Daily February Comex Gold

Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1218.90 will turn the main trend to up. The price action suggests investors may be taking a breather today. However, momentum is still trending up. The minor trend will turn down on a move through $1187.50.

On the upside the primary target is a retracement zone at $1232.70 to $1258.20.

On the downside, the support is a series of retracement levels at $1193.40, $1180.20, $1171.60 and $1160.40.

Forecast

Based on the early price action, the direction of gold today is likely to be determined by trader reaction to the Fibonacci level at $1193.40. This price is likely to act like a pivot.

A sustained move over $1193.40 will indicate that buyers are coming in to support the market. Upside targets include $1218.90 and $1232.70.

A sustained move under $1193.40 could create the momentum needed to challenge $1187.40 then $1180.20.

I don’t expect much movement today, but be careful buying strength and selling weakness due to the low volume.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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