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Comex Gold Futures (GC) Technical Analysis – January 24, 2017 Forecast

By:
James Hyerczyk
Updated: Jan 24, 2017, 13:20 UTC

April Comex Gold futures are under pressure shortly before the regular session opening. The catalyst behind the move is the stronger U.S. Dollar. Gold

Comex Gold Bars

April Comex Gold futures are under pressure shortly before the regular session opening. The catalyst behind the move is the stronger U.S. Dollar. Gold prices will be sensitive to the dollar all day as well as U.S. equities. However, the wildcard remains President Donald Trump. He can create volatility at any time in either direction so traders have to be on their toes.

Comex Gold
Daily April Comex Gold

Technical Analysis

The main trend is up according to the daily swing chart. Earlier today, the market took out the previous main top at $1221.80. This signaled a resumption of the uptrend, however, the buying dried up after a test of $1223.00.

If the rally continues through $1223.00 then look for a test of the two main tops at $1225.50 and $1237.10.

A trade through $1198.10 will change the main trend to down.

Today’s price action also indicates a potentially bearish closing price reversal top may be forming. If confirmed, this could lead to the start of a 2 to 3 day break.

The main range is $1343.90 to $1127.20. Its retracement zone at $1235.60 to $1261.10 is the primary upside target.

The short-term range is $1127.20 to $1223.00. If there is a meaningful sell-off then its retracement zone at $1175.10 to $1163.80 will become the primary downside target.

Forecast

Based on the current price at $1215.50, the nearest upside target is an uptrending angle at $1227.20. The nearest downside target is an uptrending angle at $1210.10.

If buyers can take out $1215.50 then look for the rally to continue into the main 50% level at $1235.60 and the downtrending angle at $1243.90. This last price is also a trigger point for an acceleration into $1261.10.

Taking out the angle at $1210.10 will indicate the selling is getting stronger. This could lead to a test of the main bottom at $1198.10.

A failure at $1198.10 will change the main trend to down. It could also trigger a break into the next uptrending angle at $1177.10.

The market is currently trading inside an uptrending channel. It is being formed by uptrending angles at $1215.50 and $1210.10.

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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