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Gold Price Futures (GC) Technical Analysis – February 9, 2018 Forecast

By:
James Hyerczyk
Published: Feb 9, 2018, 13:25 UTC

Based on the early price action, the direction of the gold market today is likely to be determined by trader reaction to the uptrending Gann angle at $1322.70.

Comex Gold

April Comex Gold futures are trading mixed shortly after the futures market opening. Traders are monitoring the price action in the dollar and the stock market. Dollar and stock market traders are watching U.S. Treasury yields.

Higher yields should support the dollar and pressure stocks. If stocks sell off sharply then flight-to-safety buying should support gold. However, rising rates and a firmer dollar could limit gains. Gold could spike to the upside if a stock market sell-off is steep enough to send investors into the safety of U.S. Treasury yields.

There are a lot of “ifs”, but the stock market turmoil came as such a surprise that investors are moving money everywhere for protection.  Most of the moves have been short-term in nature also, making it difficult for gold to re-establish a solid uptrend.

Comex Gold
Daily April Comex Gold

 Daily Technical Analysis

The main trend is down according to the daily swing chart. The market isn’t close to changing the main trend to up, but today’s session begins with the market in the window of time for a potentially bullish closing price reversal bottom.

A trade though $1309.00 will signal a resumption of the downtrend.

The main range is $1242.70 to $1370.50. Its retracement zone at $1306.60 to $1291.50 is the primary downside target.

The short-term range is $1370.50 to $1309.00. Its retracement zone at $1339.80 to $1347.00 is the primary upside target.

Daily Technical Forecast

Based on the early price action, the direction of the gold market today is likely to be determined by trader reaction to the uptrending Gann angle at $1322.70.

A sustained move over $1322.70 will signal the presence of buyers. Overtaking the steep downtrending Gann angle at $1326.50 will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the next target the short-term 50% level at $1339.80.

A sustained move under $1322.70 will indicate the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into $1309.00 then $1306.60.

If $1306.60 fails then look for the selling to extend into $1291.50.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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