Gold Price Futures (GC) Technical Analysis – December 20, 2017 Forecast

February Comex Gold futures are trading higher shortly before the regular session opening. The market is rapidly approaching a key retracement area that could prove to be resistance.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since December 12. On Thursday, the market will enter the window of time for a closing price reversal top.

The main range is $1303.40 to $1238.30. Its retracement zone at $1270.90 to $1278.50 is the primary upside target. A major Fibonacci level falls inside this zone at $1272.30.

The new short-term range is $1238.30 to $1269.70. If the market holds inside this range then we could see a correction into its retracement zone at $1254.00 to $1250.30.

Daily Technical Forecast

Based on the early price action, trader reaction to the downtrending Gann angle at $1269.40 will determine the direction of the market the rest of the session.

A sustained move under $1269.40 will signal the presence of sellers. This could drive the market back into the steep uptrending Gann angle at $1262.30. This angle is the trigger point for an acceleration to the downside.

The daily chart shows there is plenty of room to fall with the next major target $1254.00.

Overtaking and sustaining a move over $1269.40 will indicate the presence of buyers. This could fuel a quick rally into $1270.90 then $1272.30. Since the main trend is down, we’re going to start looking for sellers on a test of this area. Overtaking $1272.30 could trigger a spike into $1278.50.