Gold Price Futures (GC) Technical Analysis – February 15, 2018 Forecast

April Comex gold futures are trading lower shortly before the New York opening after touching its highest level since January 26 earlier in the session. The price action is in response to a slight recovery in the U.S. Dollar Index.

Traders are also squaring positions ahead of a slew of U.S. economic data including the Producer Price Index report, the Empire State Manufacturing Index, the Philly Fed Manufacturing Index and Weekly Unemployment claims.

Traders will also get the opportunity to reaction to fresh data on Capacity Utilization and Industrial Production.

Daily Technical Analysis

The main trend is down according to the daily swing chart, but momentum has shifted to the upside. A trade through $1370.50 will change the main trend to up.

The short-term range is $1370.50 to $1309.00. Its retracement zone at $1347.00 to $1339.80 is the support. It is also controlling the near-term direction of the market. Holding above this zone will help maintain the developing upside bias.

Daily Technical Forecast

Based on the early price action, the direction of the gold market the rest of the session will be determined by trader reaction to the downtrending Gann angle at $1355.50.

A sustained move under $1355.50 will indicate the presence of sellers. This could lead to a test of the steep uptrending Gann angle at $1349.00, followed by the Fibonacci level at $1347.00.

Breaking the Fib at $1347.00 could drive the market into the 50% level at $1339.80. This is a potential trigger point for an acceleration into the next uptrending Gann angle at $1329.00.

Overtaking $1355.50 will signal the presence of buyers. This could trigger a move into the next downtrending Gann angle at $1363.00. This is the last potential resistance angle before the $1370.50 main top.

Basically, look for the bullish tone to continue on a sustained move over $1355.50, and for a downside bias to develop on a sustained move under $1349.00.