Gold Price Futures (GC) Technical Analysis – January 7, 2019 ForecastBased on the early price action and the current price at $1293.70, the direction of the February Comex gold futures contract today is likely to be determined by trader reaction to the steep uptrending Gann angle at $1292.00.
Gold futures are trading higher on Monday with the move being fueled by a weaker U.S. Dollar. There was no follow-through to the downside following Friday’s potentially bearish closing price reversal top. This suggests that Friday’s sell-off was caused by profit-taking after a 13-session rally rather than aggressive counter-trend short-selling.
At 1258 GMT, February Comex gold futures are trading $1293.70, up $7.90 or +0.61%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. However, Friday’s closing price reversal top may be signaling a shift in momentum to the downside.
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 trigger the start of a 2 to 3 day counter-trend correction.
The market is currently trading inside a major retracement zone. The 50% level is $1285.70 and the 61.8% level is $1312.30.
The short-term range is $1236.50 to $1300.40. Its 50% level or pivot at $1268.50 is the first downside target.
Daily Technical Forecast
Based on the early price action and the current price at $1293.70, the direction of the February Comex gold futures contract today is likely to be determined by trader reaction to the steep uptrending Gann angle at $1292.00.
A sustained move over $1292.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into Friday’s high at $1300.40. Taking out this level could trigger an acceleration into the main Fibonacci level at $1312.30.
The inability to overcome $1292.00 will signal the presence of sellers. This could drive gold into the major 50% level at $1285.70.
Look for an acceleration to the downside if $1285.70 fails as support. This could trigger an acceleration into $1278.10. This price is another trigger point for a steep break into the pivot at $1268.50. This is followed by the uptrending Gann angle at $1264.50.
Look for the market to strengthen on a sustained move over $1292.00, and to weaken on a sustained move under $1285.70.