Comex Gold Futures (GC) Technical Analysis – July 1, 2016 Forecast

August Comex Gold futures are trading higher shortly before the regular session opening. The market is getting a boost from a weaker U.S. Dollar.

The main trend is up according to the daily swing chart. After four days of sideways-to-lower trading, momentum appears to be shifting to the upside.

The short-term range is $1252.80 to $1362.60. Its retracement zone is $1307.70 to $1294.70. This zone remains the primary downside target should the current rally fail. Early in the week, gold came close to touching the 50% level of the zone at $1307.70 when it traded down to $1308.20.

Based on yesterday’s close at $1320.60 and the early price action, the direction of the market today is likely to be determined by trader reaction to the downtrending angle at $1322.60.

A sustained move over $1322.60 will indicate the presence of buyers. This could create enough upside momentum to overcome the steep uptrending angle at $1332.80. This move is currently taking place.

The next upside target is a downtrending angle at $1342.60. This is a potential trigger point for an acceleration into a pair of downtrending angles at $1362.60 and $1357.60. The latter is the last potential resistance angle before the $1362.60 main top.

A failure to hold above $1332.80 will be the first sign of selling pressure. Breaking under the downtrending angle at $1322.60 will indicate the selling is getting stronger. This could trigger an acceleration to the downside since the next target is the short-term 50% level at $1307.70. This is followed by a potential support cluster at $1294.70, $1293.50 and $1292.80.

Look for the upside bias to continue on a sustained move over $1342.60. Weakness could start to develop on a sustained move under $1332.80 with a possible sharp break under $1322.60.