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Gold Price Futures (GC) Technical Analysis – January 23, 2019 Forecast

By:
James Hyerczyk
Published: Jan 23, 2019, 13:22 UTC

Based on the early price action, the direction of the April Comex gold futures contract the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at $1292.50.

Comex Gold

Gold futures are edging higher on Wednesday after traders confirmed yesterday’s closing price reversal bottom. The move is being fueled by a weaker U.S. Dollar, but gains are being limited by higher U.S. Treasury yields and increased demand for risky assets. There are no major economic releases today, but investors are paying attention to U.S.-China relations while watching for additional signs of a global economic slowdown.

At 1306 GMT, April Comex gold is trading $1290.50, up $1.00 or +0.08%.

Comex Gold
Daily April Comex Gold

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top at 1306.50 on January 4.

Yesterday, the market formed a closing price reversal bottom at $1283.00. The chart pattern was confirmed earlier today. A trade through this level will negate the chart pattern and signal a resumption of the downside momentum.

On the upside, the resistance is the retracement zone at $1293.60 to $1319.70. This zone stopped the rally at $1306.50.

On the downside, the first target is the 50% level at $1274.50. This is followed by additional 50% levels at $1264.70 and $1257.90.

Daily Technical Forecast

Based on the early price action, the direction of the April Comex gold futures contract the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at $1292.50.

Bullish Scenario

A sustained move over $1292.50 will indicate the presence of buyers. This could trigger a quick move into the 50% level at $1293.60 and the downtrending Gann angle at $1294.50.

The trigger point for an acceleration to the upside is $1294.50. Taking out this angle could drive gold into downtrending Gann angles at $1300.50 and $1303.50. The latter is the last potential resistance angle before the $1306.50 main top.

Bearish Scenario

A sustained move under $1292.50 will signal the presence of sellers. If this move creates enough downside momentum then look for a potential break into the closing price reversal bottom at $1283.00. If this fails then look for the selling to possibly extend into the 50% level at $1274.50 over the near-term.

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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