Gold Price Futures (GC) Technical Analysis – April 4, 2018 Forecast

June Comex gold futures are trading sharply higher early Wednesday, driven by a weaker U.S. Dollar and a sell-off in higher risk assets. The catalyst for the move was China’s announcement of additional tariffs on 106 U.S. products on Wednesday, in a move likely to heighten global concerns of an escalating trade war between the United States and China.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trying to shift back to the upside following last week’s steep sell-off.

The short-term range is $1362.60 to $1325.40. Its retracement zone at $1344.00 to $1348.40 is currently being tested. Overtaking this zone will shift momentum to the upside.

A trade through $1362.60 will signal a resumption of the uptrend. A move through $1325.40 will indicate the selling is getting stronger.

Daily Technical Forecast

Based on the current price at $1347.10 and the earlier price action, the direction of the gold market the rest of the session is likely to be determined by trader reaction to the short-term Fibonacci level at $1348.40.

A sustained move over $1348.40 will indicate the presence of buyers. This could trigger a fast rally into a long-term downtrending Gann angle at $1352.00. We could see a technical bounce on the first test of this angle. However, look for an acceleration to the upside if this angle is taken out with strong volume.

A rally through $1352.00 could generate the upside momentum needed to drive the gold market into the last main top at $1362.60. Taking out this top will signal a resumption of the uptrend and likely fuel a rally into another downtrending Gann angle at $1363.80. This is the last potential resistance angle before the $1369.60 and $1375.50 main tops.

A sustained move under $1348.40 will signal the presence of sellers. This could lead to a quick test of the 50% level at $1344.00. This price is the trigger point for a steep sell-off.

Watch the price action and read the order flow inside $1344.00 to $1348.40. This will tell us if the buying is getting stronger.