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February Comex Gold futures closed higher on Friday after surviving a test of the main bottom at $1045.40. A trade through this bottom would’ve signaled resumption of the downtrend.

Daily-February-Comex-Gold15-645x313

The main trend is up according to the daily swing chart. The trend turned up on December 4, but momentum has been to the downside since that date.The short-term range is $1045.40 to $1088.30. Its retracement zone is $1066.90 to $1061.80. The market had been straddling this zone for two weeks. Trader reaction to this zone is likely to set the tone of the market over the near-term.

Based on Friday’s close at $1065.00, the direction of the market today is likely to be determined by trader reaction to the 50% level at $1066.90 and the Fibonacci level at $1061.80.A sustained move over $1065.00 will indicate the presence of buyers. Crossing over to the strong side of the up trending angle at $1069.40 will put gold in a bullish position. The daily chart is open to the upside over this angle with the next target the December 4 high at $1088.30 and the steep up trending angle at $1093.40.Crossing to the strong side of the angle at $1093.40 will put gold futures in a position to challenge a long-term down trending angle at $1109.20 and a long-term 50% level at $1114.30.

A sustained move under the Fib level at $1061.80 will signal the presence of sellers. The first downside target is an uptrending angle at $1057.40. This is followed closely by another uptrending angle at $1051.40. This is the last potential support angle before last week’s low at $1046.80 and the main bottom at $1045.40.Taking out $1045.40 will negate the closing price reversal chart pattern and signal a resumption of the downtrend. The first target under this bottom is a long-term downtrending angle at $1035.20. Crossing to the weak side of this angle will put gold in an extremely bearish position.

Source: FXEMPIRE

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Peter Says

0 1

I cant think there is any reason to sell and down trend.Only Buy



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