Advertisement
Advertisement

Gold Price Futures (GC) Technical Analysis – April 4, 2019 Forecast

By:
James Hyerczyk
Published: Apr 4, 2019, 12:55 UTC

Based on the early price action, the direction of June Comex gold on Thursday is likely to be determined by trader reaction to the Fib level at $1289.90.

Gold Bars and Dollar

Gold moved to a new session low on Thursday after a weaker Euro drove up the U.S. Dollar Index, prompting investors to sell the dollar-denominated asset. The move in the Euro was fueled by the release of the minutes from the European Central Bank’s March meeting in which policymakers said that the persistence of uncertainties continued to weigh on the growth outlook, forcing it to announce new stimulus measures.

At 12:31 GMT, June Comex gold is trading $1288.80, down $6.70 or -0.50%.

Comex Gold
Daily June Comex Gold

Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed after sellers took out $1289.50. The market is now trading lower for the year and in a position to take out the low of the year at $1287.50.

The minor trend is also down. The downtrend was reaffirmed when sellers took out $1289.50. This made $1299.00 a new minor top. A trade through this level will change the minor trend to up and shift momentum to the upside.

The next downside target is a major retracement zone at $1285.50 to $1268.90.

On the upside, the nearest resistance is a Fibonacci level at $1289.90. This is followed by a 50% level at $1302.50.

Daily Technical Forecast

Based on the early price action, the direction of June Comex gold on Thursday is likely to be determined by trader reaction to the Fib level at $1289.90.

Bullish Scenario

A sustained move over $1289.90 will indicate the return of buyers. If this move creates enough upside momentum then look for a potential rally into the downtrending Gann angle at $1298.80.

Bearish Scenario

A sustained move under $1289.90 will indicate the presence of sellers. The next target is the 50% level at $1285.50. This is a potential trigger point for an acceleration to the downside with $1268.90 the next major downside target.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?

Advertisement