Comex Gold Futures (GC) Technical Analysis – May 25, 2016 Forecast

August Comex Gold futures are trading lower during the Asian session. The move represents a continuation of yesterday’s sell-off.

The main trend is down according to the daily swing chart. It turned down last week on a trade through $1261.00 and was reaffirmed earlier today on the move through $1227.50. If the selling persists then look for traders to go after the April 1 bottom at $1211.80.

Look for the selling pressure to continue today as long as the market remains on the bearish side of the steep downtrending angle at $1240.00.

Today is the seventh day down from the last main top so we are in the window of time for a closing price reversal bottom. If the follow-through is weak today, we could see a turnaround later in the session. This may be strong enough to produce the reversal. So be careful selling weakness.

If the selling pressure continues then we could see an acceleration into the $1211.80 main bottom. This is also the trigger point for another steep break with the next target the main 50% level at $1178.70.

Overcoming $1240.00 will signal the presence of buyers. This could trigger a short-covering rally into $1248.60.