Gold Price Futures (GC) Technical Analysis – July 25, 2017 Forecast

December Comex Gold futures are trading lower shortly before the regular session opening. The market followed through to the downside after posting a closing price reversal top on Monday, confirming the potentially bearish chart pattern.

Technical Analysis

The main trend is down according to the daily swing chart. Despite the recent 10 day rally, the main trend never turned up. A trade through $1265.10 will negate the reversal top. A move through $1267.10 will change the main trend to up.

The main range is $1305.50 to $1211.10. Its retracement zone at $1258.30 to $1269.40 appears to have stopped the rally.

The new short-term range is $1211.10 to $1265.10. If the selling continues then its retracement zone at $1238.10 to $1231.70 will become the primary downside target.

Forecast

Based on the current price at $1256.20 and the earlier price action, the direction of the gold market today is likely to be determined by trader reaction to the steep uptrending angle at $1255.10.

Holding $1255.10 will indicate the presence of buyers. This could lead to a test of $1258.30. Overcoming this level could create the upside momentum needed to challenge $1265.10, $1269.40 and $1271.50. This is the trigger point for an acceleration to the upside.

A sustained move under $1255.10 will signal the presence of sellers. The daily chart is wide open to the downside with the next major downside target coming in at $1238.10.

Watch the price action and read the order flow at $1255.10 all session. Trader reaction to this angle will set the tone for the day.