Gold Price Futures (GC) Technical Analysis – Strengthens Over $1578.00, Weakens Under $1574.00Based on the early price action and the current price at $1572.80, the direction of the February Comex gold futures contract into the close on Tuesday is likely to be determined by trader reaction to the minor 50% level at $1574.00.
Gold futures are trading higher shortly before the close on Tuesday after recovering from early session weakness. With the market hovering near a 7-year peak, investors decided early in the session to book some profits after posting a tremendous gain since Christmas week.
According to Reuters, gold prices retreated early Tuesday as investors took profits in the absence of new developments in the tense situation between the United States and Iran.
At 18:06 GMT, February Comex gold is trading $1572.80, up $4.00 or +0.26%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through $1590.90 will signal a resumption of the uptrend. The main trend changes to down on a move through $1463.00. Other bottoms come in at $1456.60 and $1453.10.
The minor range is $1590.90 to $1557.00. Its retracement zone at $1574.00 to $1578.00 is the first upside target. It’s very important.
Counter-trend sellers may want to sell a test of this zone in an effort to form a secondary lower top. Buyers are going to try to drive the market through this zone in an effort to make $1557.00 a new higher main bottom.
The main range is $1453.10 to $1590.90. Its retracement zone at $1522.00 to $1505.70 is the best downside target and value zone. Buyers are likely to come in strong on a test of this zone.
Daily Technical Forecast
Based on the early price action and the current price at $1572.80, the direction of the February Comex gold futures contract into the close on Tuesday is likely to be determined by trader reaction to the minor 50% level at $1574.00.
A sustained move over $1574.00 will indicate the buying is getting stronger. Taking out the Fibonacci level at $1578.00 could trigger an acceleration to the upside with $1590.90 the next upside target.
A sustained move under $1574.00 will signal the presence of sellers. They are going to try to drive the market back into today’s intraday low at $1557.00.
If the selling pressure increases under $1557.00 then we could see an eventual break into an uptrending Gann angle at $1525.10. If this fails then look for the selling to extend into $1522.00 to $1505.70. This zone is value. Look for buyers to show up.