Gold Price Futures (GC) Technical Analysis – April 9, 2018 Forecast

The relative calm in the stock market and a stronger U.S. Dollar is helping to put a cap on the June Comex Gold futures contract shortly after the regular session opening. Increased appetite for risk is behind the price action today as investors may be increasing bets that the United States and China will negotiate their way out of a full-blown trade war.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, a closing price reversal bottom stopped the selling pressure and may have signaled a shift in momentum to the upside.

A trade through $1339.10 will confirm the reversal chart pattern. This could trigger the start of a 2 to 3 day rally with the retracement zone at $1342.60 to $1347.30 the primary upside target.

The main trend will change to up on a move through $1352.50. A move through $1322.60 will negate the closing price reversal bottom and signal a resumption of the downtrend.

Daily Technical Forecast

Based on the early price action, buyers appear to be respecting the long-term uptrending Gann angle at $1326.30 and Friday’s high at $1339.10.

A trade through $1339.10 will signal the presence of buyers. This could create the upside momentum needed to challenge the short-term 50% level at $1342.60, the short-term Fibonacci level at $1347.30 and the long-term downtrending Gann angle at $1350.50. This angle stopped the rally on April 4 at $1352.50 and should also be considered another trigger point for a breakout to the upside.

A move into the uptrending angle at $1326.30 could also attract counter-trend buyers.

Crossing to the weak side of the downtrending Gann angle at $1325.50 will signal the presence of sellers. This is followed by the closing price reversal bottom at $1322.60.

Taking out $1322.60 will indicate the selling is getting stronger. This could trigger an acceleration to the downside with potential targets coming in at $1312.40, $1311.40 and $1309.30.