Comex Gold Futures (GC) Technical Analysis – March 28, 2017 Forecast

June Comex Gold futures are trading higher shortly before the regular session opening. After trading sideways to lower earlier in the session, the gold market started to rise in reaction to a stagnant U.S. Dollar Index and a reversal to the downside in the stock market during the pre-market session.

Overall, there is still a strong upside bias that is being driven by political and economic uncertainty in Europe and the United States.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1264.20 will signal a resumption of the buying. A move through the last swing top at $1268.10 will signal a resumption of the uptrend.

On the downside, a trade though $1243.70 will turn the main trend to down.

The major upside target is a long-term retracement zone at $1260.70 to $1291.50. About a month ago, this zone provided resistance when the rally stopped at $1268.10. Yesterday, it stopped the rally at $1264.20.

Currently, it looks as if investors are going to go after the lower or 50% level at $1260.70.

Forecast

Based on the current price at $1260.70, the direction of the gold market the rest of the session is likely to be determined by trader reaction to the major 50% level at $1260.70.

A sustained move over $1260.70 will signal the presence of buyers. This could lead to a fast move into yesterday’s high at $1264.20 then the main top at $1268.10.

Taking out $1268.10 with conviction could trigger a surge to the upside. The daily chart indicates there is plenty of room to rally with the major Fibonacci level at $1291.50 the next potential upside target.

The inability to overcome $1260.70 will indicate the presence of sellers, or that the buying is slowing. This could lead to a move into the short-term uptrending angle at $1251.70. This is followed by the longer-term uptrending angle at $1246.00. Both angles are capable of stopping the selling.

However, if $1246.00 fails as support then look for a potential break into $1243.70. Taking out this level will change the main trend to down and could trigger the start of an acceleration to the downside.