Comex Gold Futures (GC) Technical Analysis – May 30, 2016 Forecast

The August Comex Gold futures market is closed Monday because of the U.S. Memorial Day bank holiday so we’ll take a look at the weekly chart which should offer you guidance all week especially when combined with the daily chart analysis.

The main trend is down according to the weekly swing chart. The main trend turned down last week when sellers took out the last swing bottom at $1211.80.

The main range is $1049.40 to $1308.00. Its retracement zone at $1178.70 to $1148.20 is the primary downside target. Buyers may show up on a test of this zone so don’t be surprised by a technical bounce.

Based on the close at $1216.70, the nearest resistance is an uptrending angle at $1241.40 and a steep downtrending angle at $1244.00.

Overtaking $1244.00 will indicate strong buying. This could trigger a further rally into a downtrending angle at $1276.00.

The inability to overcome and sustain a rally over $1241.40 will signal the presence of sellers. A sustained move under last week’s low at $1209.00 will indicate the selling is getting stronger.

The weekly chart is wide open to the downside with the first downside target the main 50% level at $1178.70. There could be a technical bounce on the first test of this level, but if it fails then look for the selling pressure to extend into the main Fibonacci level at $1148.20 and a long-term uptrending angle at $1145.40.

The direction of the market this week will likely be determined by trader reaction to last week’s low at $1209.00. Treat this price like a weekly pivot.