Gold Price Futures (GC) Technical Analysis – January 11, 2019 Forecast

Based on the early price action, the direction of the February Comex gold market on Friday is likely to be determined by trader reaction to the pivot at $1289.20. The main trend is up according to the daily swing chart. However, upside momentum stopped with the formation of a closing price reversal top on January 4. Since then the market has zig-zagged inside a wide range.
James Hyerczyk
Gold Bars and Dollar
Gold Bars and Dollar

Buyers returned to the gold market on Friday, driving the market higher after yesterday’s sell-off. The market is still trading inside last Friday’s wide range which suggests investor indecision and impending volatility. Gold is being supported by a weaker U.S. Dollar and on expectations the U.S. Federal Reserve will may pause interest rate hikes in 2019. Putting a lid on the rally is optimism over US-China trade relations and increased demand for risky assets.

At 0825 GMT, February Comex gold is trading at $1294.40, up $7.00 or +0.54%.

Daily February Comex Gold

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, upside momentum stopped with the formation of a closing price reversal top on January 4. Since then the market has zig-zagged inside a wide range.

A trade through $1300.40 will negate the closing price reversal top and signal a resumption of the uptrend.

A move through $1278.10 will confirm the closing price reversal top. This could lead to the start of a 2 to 3 day sell-off.

The major retracement zone at $1285.70 to $1312.30 has been acting like resistance for more than a week.

The extremely short-term range is $1300.40 to $1278.10. The market has been straddling its 50% level or pivot at $1289.20 all week. Trader reaction to this level should control the direction of the market today.

The short-term range is $1236.50 to $1300.40. Its 50% level at $1268.50 is the first major downside target.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the February Comex gold market on Friday is likely to be determined by trader reaction to the pivot at $1289.20.

Bullish Scenario

A sustained move over $1289.20 will indicate the presence of buyers. The first target is yesterday’s high at $1298.00. This is followed by the closing price reversal top at $1300.40.

Taking out $1300.40 could trigger an acceleration to the upside with the next target angle coming in at $1308.50. Overcoming this angle will put gold in a strong position with the next target the Fibonacci level at $1312.30.

Bearish Scenario

A sustained move under $1289.20 will signal the presence of sellers. This could trigger a break into the major 50% level at $1285.70.

Look for the selling to get stronger if $1285.70 fails as support with $1278.10 the first target. This is followed by an uptrending Gann angle at $1272.50, followed by $1268.50.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US