Comex Gold Futures (GC) Technical Analysis – January 23, 2017 Forecast

April Comex Gold futures are trading higher in reaction to the weaker U.S. Dollar. The Greenback is under pressure due to the lack of confidence in President Trump’s ability to run a government and deliver what he promised during his campaign.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1221.80 will signal a resumption of the uptrend. A move through $1198.10 will turn the main trend to down.

The main range is $1343.90 to $1127.20. Its retracement zone at $1235.60 to $1261.10 is the primary upside target. A downtrending angle passes through this zone at $1245.90, making it a valid upside target also.

The short-term range is $1127.20 to $1221.80. If there is a correction then $1174.50 to $1163.30 will become the primary downside target.

Forecast

Based on the current price at $1217.00 and the early price action, the direction of the market is likely to be determined by trader reaction to the main top at $1221.80.

Taking out $1221.80 will change the trend to up, overcoming the uptrending angle at $1123.20 will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the first target the major 50% level at $1235.60, followed by the downtrending angle at $1245.90.

The inability to overcome $1221.80 will signal the presence of sellers. This could drive the market back into the uptrending angle at $1206.10. This is followed by the main bottom at $1198.10. If this price fails then look for a steep sell-off with the next major target a support cluster at $1175.20 to $1174.50.

Watch the price action and read the order flow at $1121.80 today. Trader reaction to this top will set the tone for the day.