Gold Price Futures (GC) Technical Analysis – Could Be Setting Up Bearish Closing Price Reversal Top

Based on the early price action, the direction of the August Comex gold futures contract into the close is likely to be determined by trader reaction to yesterday’s close at $1327.90.
James Hyerczyk
Comex Gold

Gold futures are trading lower at the mid-session may be vulnerable to a near-term correction of $30 or more if Treasury yields continue to rise along with demand for higher risk assets. Furthermore, a stronger U.S. Dollar is likely to trigger a drop in demand for the dollar-denominated asset.

I recently warned about chasing the market higher because I suspected that all it was going to take was the U.S. and China saying the trade negotiations were set to resume to bring in the sellers. On Tuesday, the Chinese Commerce Ministry said in a post that the “differences and frictions between the two sides” should be dealt with through talks. It wasn’t the announcement of new trade talks, however, it was just enough to encourage profit-taking after an early rally.

At 16:04 GMT, August Comex gold is trading $1327.30, down $0.60 or -0.05%.

Daily August Comex Gold

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, the market is threatening to form a potentially bearish closing price reversal top which could bring an end to the rally. If formed then confirmed, we could see a 2 to 3 day correction of 50% to 61.8% of the short-term rally.

A trade through $1334.10 will signal a resumption of the uptrend. A move through $1335.70 will reaffirm the uptrend. This could even trigger a breakout to the upside with $1361.50 the next target.

The trend will change to down on a trade through $1274.60. However, this is highly unlikely today. What is possible is a closing price reversal top, or a close below $1327.90.

The long-term range is $1413.30 to $1202.00. Its 50% to 61.8% retracement zone is $1307.70 to $1332.60. Today’s rally stopped just slightly above the upper or Fibonacci level at $1332.60.

The short-term range is $1274.60 to $1334.10. Its retracement zone at $1304.40 to $1297.30 is a potential downside target.

The combination of the two zones creates a 50% support cluster at $1307.70 to $1304.40.

Daily Technical Forecast

Based on the early price action, the direction of the August Comex gold futures contract into the close is likely to be determined by trader reaction to yesterday’s close at $1327.90.

Bullish Scenario

Look for a bullish move into the close if buyers can sustain a move over $1327.90. This could trigger a move into the Fib level at $1332.60, the intraday high at $1334.10 and the main top at $1335.70. This is followed by a downtrending Gann angle at $1343.50.

Bearish Scenario

A sustained move under $1327.90 will indicate the presence of sellers. The first target is a downtrending Gann angle at $1325.50. This is a potential trigger point for an acceleration to the downside with the next target angle coming in at $1310.60.

If $1310.60 fails as support then look for the selling to possibly extend into the 50% support cluster at $1307.70 to $1304.40.

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

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.