FXEMPIRE
All
Advertisement
Advertisement

Gold Price Futures (GC) Technical Analysis – Strengthens Over $1570.60, Weakens Under $1565.80

Based on Tuesday’s price action and the close at $1570.10, the direction of the April Comex gold futures contract on Wednesday is likely to be determined by trader reaction to a pair of 50% levels at $1565.80 and $1570.60.
James Hyerczyk

Gold futures retreated on Tuesday as equities and bond yields moved higher after China’s senior medical adviser suggested the coronavirus epidemic may be over by April, although uncertainty over the impact of the outbreak underpinned the safe-haven metal. Traders shrugged off the weakness in the U.S Dollar, which hit a four-month high earlier in the session.

On Tuesday, April Comex gold settled at $1570.10, down $9.40 or -0.60%.

Daily April Comex Gold

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1598.50 will change the main trend to up. A move through the last main bottom at $1551.10 will signal a resumption of the downtrend.

The minor trend is also down. A trade through $1580.50 will change the minor trend to up. Taking out this level will shift momentum to the upside.

The price action is also being controlled by a number of retracement levels.

On the downside, a pair of 50% levels at $1570.60 to $1565.80 is potential support.

The short-term range is $1619.60 to $1542.80. Its retracement zone at $1581.20 to $1590.30 is potential resistance.

The main range is $1458.50 to $1619.60. Its retracement zone at $1539.10 to $1520.00 is potential support and a value zone. A pullback into this zone should attract buyers.

Advertisement

Daily Swing Chart Technical Forecast

Based on Tuesday’s price action and the close at $1570.10, the direction of the April Comex gold futures contract on Wednesday is likely to be determined by trader reaction to a pair of 50% levels at $1565.80 and $1570.60.

Bullish Scenario

A sustained move over $1570.60 will indicate the presence of buyers. This could trigger a rally into the minor top at $1580.50 and the short-term 50% level at $1581.20.

Taking out $1581.20 could trigger an acceleration into the short-term Fibonacci level at $1590.30.

Bearish Scenario

A sustained move under $1565.80, will signal the presence of sellers. This could trigger an acceleration to the downside with the next major target the main bottom at $1551.10.

Taking out $1551.10 could lead to a further break into the main bottom at $1542.80 and the main 50% level at $1539.10.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Trade With A Regulated Broker

  • Your capital is at risk