The early price action indicates that the key support today is a steep uptrending Gann angle at $1322.30.
February Comex Gold futures are trading higher early in the session on Friday. A weaker U.S. Dollar is the catalyst behind the rally.
If the U.S. Consumer Inflation report comes in below the 0.10% estimate then gold should spike higher.
The main trend is up according to the daily swing chart. There is room to run to the upside over the near-term since the next main top is $1365.80.
Due to the prolonged move up in terms of price and time, the market is vulnerable to a closing price reversal top.
The main range is $1365.80 to $1238.30. Its retracement zone at $1317.10 to $1302.10 is support.
The early price action indicates that the key support today is a steep uptrending Gann angle at $1322.30.
A sustained move over $1322.30 will indicate the presence of buyers. This could generate the upside momentum needed to test the next downtrending Gann angle at $1344.00. This is the last potential resistance angle before the $1365.80 main top.
The uptrending Gann angle at $1322.30 forms a support cluster with a downtrending Gann angle at the same price. This is why the market stopped at $1322.10 today.
If $1322.30 is taken out with heavy selling pressure then look for a quick break into the Fibonacci level at $1317.10. This is the trigger point for an acceleration into the 50% level at $1302.10.
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.