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Gold Price Futures (GC) Technical Analysis – Trigger Point for Steep Break is $1338.50

By:
James Hyerczyk
Published: Feb 19, 2018, 12:15 UTC

Based on last week’s close at $1356.20, the direction of the gold market this week is likely to be determined by trader reaction to the downtrending Gann angle at $1354.50.

Comex Gold

April Comex Gold futures are trading lower early Monday as investors react to a slight rebound in the U.S. Dollar. Trading is thin as investors adjust to below average volume caused by a bank holiday in the U.S. and the Lunar New Year holiday in China.

Comex Gold
Weekly April Comex Gold

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. A trade through $1370.50 will signal a resumption of the uptrend. A move through $1309.00 will change the minor trend to down and signal a shift in momentum to the downside.

The short-term range is $1370.50 to $1309.00. Its 50% level or pivot is $1339.80. Holding above this level will help the market maintain its current upside bias.

The main range is $1242.70 to $1370.50. If $1309.00 fails as support then its retracement zone at $1306.60 to $1291.50 will become the primary downside target.

Weekly Technical Forecast

Based on last week’s close at $1356.20, the direction of the gold market this week is likely to be determined by trader reaction to the downtrending Gann angle at $1354.50.

A sustained move over $1354.50 will signal the presence of buyers. This could trigger a rally into the next downtrending Gann angle at $1362.50. This is the last potential resistance angle before the $1370.50 main top.

A sustained move under $1354.50 will indicate the presence of sellers. The daily chart begins to open up under this angle with the next target a potential support cluster at $1339.80 to $1338.50.

The angle at $1338.50 is a potential trigger point for an acceleration to the downside with the next target angle coming in at $1322.70.

The weekly chart will open up under $1322.70 with the next targets $1309.00 to $1306.60.

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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