Comex Gold Price Futures (GC) Technical Analysis – May 15, 2017 Forecast

June Comex Gold futures are trading higher on Monday. The market is getting support from safe-haven buying tied to concerns over political fall-out from President Trump’s abrupt firing of FBI Director James Comey, the ballistic missile test by North Korea over the week-end and Friday’s global cyber-attack.

Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is starting to trend higher although gold hasn’t overtaken any key areas on the daily chart. On the weekly chart, the market formed a potentially bullish closing price reversal bottom.

The first target is a major Fibonacci level at $1236.00. Overtaking this level could trigger a rally into the major 50% level at $1247.70.

The main range is $1297.40 to $1214.30. If this counter-trend rally gains traction then its retracement zone at $1255.90 to $1265.70 will become the primary upside target.

Forecast

Based on the current price at $1231.30 and the current price action, the direction of the gold market the rest of the session is likely to be determined by trader reaction to the steep uptrending angle at $1230.30.

A sustained move over $1230.30 will indicate the buying is getting stronger. This could trigger a fast rally into $1236.00.

Overcoming $1236.00 could trigger an acceleration to the upside with the next major target angle coming in at $1243.00. This is followed by $1247.70.

A sustained move under $1236.00 will signal the presence of sellers. This could trigger a break into a short-term uptrending angle at $1222.30, followed by a longer-term uptrending angle at $1220.50.

Watch the price action and read the order flow at $1230.30 all session. Trader reaction to this angle will set the tone for the day.