Comex Gold (GC) Futures Technical Analysis – March 18, 2014 Forecast

April Comex Gold is trading lower overnight. The move confirmed yesterday’s potentially bearish closing price reversal top. The short-term range is $1319.30 to $1392.60. This makes the first downside target $1355.95 to $1347.30. Since the main trend is up on the daily chart, there may be a technical bounce following a test of this zone.

The market also broke through an uptrending angle from the $1237.50 bottom at $1365.50. Look for downside pressure as long as gold remains below this angle. From the $1392.60, downtrending resistance comes in at $1376.60. If there is a short-covering rally, this angle is expected to stop it today.

Even with the confirmation of the reversal top, the main uptrend remains intact. Therefore, this is just a corrective move. At times, it could get ugly since the nearest change in trend level is way down at $1319.30.

Bullish traders should start watching gold when it enters the $1355.95 to $1347.30 support zone. Watch the order flow inside this zone to see if the selling pressure is subsiding and the buying increasing. It’s important that buyers defend this zone because $1335.50 is the next likely target if this zone fails as support.