Comex Gold Futures (GC) Technical Analysis – May 5, 2016 Forecast

June Comex Gold is trading higher shortly before the regular session opening. This comes as a surprise since the U.S. Dollar and stocks are also higher. It just be position-squaring ahead of Friday’s U.S. Non-Farm Payrolls report.

The main trend is up according to the daily swing chart. A trade through $1306.00 will signal a resumption of the uptrend. It may not be in a position to form a daily closing price reversal top, but it is in a position to form a potentially bearish closing price reversal top on the weekly chart.

The main range is $1225.40 to $1306.00. Its retracement zone at $1265.70 to $1256.20 is the primary downside target over the near-term.

Based on the current price at $1280.80, the direction of the market today is likely to be determined by trader reaction of the steep downtrending angle at $1282.00.

A sustained move over $1282.00 will signal the presence of buyers. Overcoming the long-term uptrending angle at $1285.40 will indicate the buying is getting stronger. This could create enough upside momentum to challenge the downtrending angle at $1294.00.

The inability to overcome the downtrending angle at $1282.00 will signal the presence of sellers. The first target is yesterday’s low at $1273.60. This price is the trigger point for a steep sell-off with the next target the main 50% level at $1265.70.

Watch the price action and read the order flow at $1282.00 the rest of the session. Trader reaction to this angle will tell us if the buyers have returned or if the selling is getting stronger.