Gold Price Futures (GC) Technical Analysis – April 26, 2018 Forecast

June Comex Gold futures are trading slightly higher. Traders are taking their cues from the Euro. If the European Central Bank is hawkish then look for the Euro to rally and the dollar index to weaken. If the ECB is dovish then the dollar index will resume its rally and gold should break.

Daily Technical Analysis

The main trend is down according to the daily swing chart. It turned down on Wednesday when sellers took out $1322.60. There wasn’t much of a follow-through to the downside with the selling stopping at $1320.20. This may be a set-up for a short-covering rally and a better shorting opportunity.

A trade through $1320.20 will signal a resumption of the downtrend. If this move creates enough downside momentum then look for the selling to extend into the next two main bottoms at $1312.40 and $1309.30.

The major downside target is a long-term retracement zone at $1311.40 to $1296.20. A test of this zone could also attract aggressive counter-trend buyers.

Daily Technical Forecast

Based on the early trade, the direction of the gold market today is likely to be determined by trader reaction to a steep downtrending Gann angle at $1325.40.

A sustained move under $1325.40 will indicate the presence of sellers. This could drive the market through $1320.20. If this move creates enough downside momentum then watch for a possible extension of the selling into a cluster of potential support levels at $1312.40, $1311.40 and $1309.30.

A sustained move over $1325.50 will signal the presence of buyers. If this move creates enough upside momentum then look for a possible surge to the upside over the near-term with a potential target coming in today at $1339.30.

If a short-term range develops between $1369.40 and $1320.20 then its retracement zone at $1344.80 to $1350.60 will become the near-term upside target.