Gold Price Futures (GC) Technical Analysis – January 18, 2018 Forecast

February Comex Gold futures are trading lower as we head into the rollover into the April futures contract. A stronger U.S. Dollar is encouraging investors to take profits after the 22 session rally. Traders will be watching today’s U.S. economic reports and the price action in the Treasury market for direction.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, the price action suggests momentum may be getting ready to shift to the downside with the formation of the two-day top at $1345.00.

The first support is a long-term Fibonacci level at $1317.10. This is followed by the long-term 50% level at $1302.10.

The main range is $1238.30 to $1345.00. If there is a further sell-off then its retracement zone at $1291.70 to $1279.10 will become the primary downside target.

Daily Technical Forecast

Based on the early trade, the direction of the gold market the rest of the session will be determined by trader reaction to the steep uptrending Gann angle at $1334.30. This angle guided the market higher for 22 sessions. Today represents the first clean break of this angle.

A sustained move under $1334.30 will indicate the presence of sellers. This could drive the market into $1317.10.

Overtaking $1334.30 and sustaining the move will signal the return of buyers. Potential resistance angles drop in at $1337.00, $1341.00 and $1343.00. The latter is the last potential resistance angle before the $1345.00 main top.