Gold Price Futures (GC) Technical Analysis – December 22, 2017 Forecast

February Comex Gold futures are trading higher on Friday. The market has now posted a higher-high in eight straight trading sessions. The early price action indicates the market is still having trouble with a key retracement area, however. Trader reaction to this area will tell us if momentum is shifting to the upside. This is important because all we’ve seen so far is an extended counter-trend rally.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1303.40 will change the main trend to up. Perhaps the best thing that could happen to this market is a minimum two-session correction. This price action would form a new lower top and change in trend level.

The resistance is a short-term 50% level at $1270.90 and a long-term Fibonacci level at $1272.30. This zone has stopped the market three sessions in a row. Overtaking $1272.30 could trigger an acceleration into a short-term Fibonacci level at $1278.50. This move will be the first sign that momentum is shifting to the upside.

The new short-term range is $1238.30 to $1272.80. Its retracement zone is $1255.60 to $1251.50. If a correction starts today then this zone will become the primary downside target.

Daily Technical Forecast

Based on the early price action, the direction of the gold market today will be determined by trader reaction to the Fib at $1272.30.

A sustained move under $1272.30 will signal the presence of sellers, or perhaps the buying is slowing down. The next targets are $1270.90 and an uptrending Gann angle at $1270.30.

The daily chart starts to open up under $1270.30. This move could drive the market into a downtrending Gann angle at $1265.40.

Crossing to the weak side of $1265.40 will indicate the selling pressure is getting stronger. This could lead to a move into the short-term 50% level at $1255.60.

Overtaking and sustaining a rally over $1272.30 will indicate the presence of buyers. This could create the upside momentum needed to challenge the Fib level at $1278.50, followed by a downtrending Gann angle at $1284.40.