Gold Price Futures (GC) Technical Analysis – February 27, 2019 Forecast

Gold futures are trading slightly better on Wednesday. The market is getting a little support from lower Treasury yields, a weaker U.S. Dollar and a decrease in demand for risky assets. The price action suggests investors are a little reluctant to commit to either side of the market due to uncertainties over Fed policy, the outcome of Brexit, U.S.-China trade negotiations and U.S.-North Korea nuclear weapons negotiations.

At 13:08 GMT, April Comex gold is trading $1330.20, up $1.70 or +0.13%.

Daily Technical Analysis

Gold is posting an inside trading range for the fourth straight session. This indicates investor indecision and impending volatility.

The main trend is up according to the daily swing chart. A trade through $1349.80 will signal a resumption of the uptrend. The main trend will change to down on a move through $1304.70.

The short-term range is $1304.70 to $1349.80. Its retracement zone at $1327.30 to $1321.90 has been stable support all week.

Daily Technical Forecast

Based on the early price action, the direction of the April Comex gold futures contract on Wednesday is likely to be determined by trader reaction to the support cluster at $1327.50 to $1327.30.

Bullish Scenario

A sustained move over $1327.50 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to extend into the resistance cluster at $1336.40 to $1337.70.

Look for profit-taking on the initial test of $1336.40. However, watch for a potential acceleration to the upside if $1337.70 is taken out with conviction.

Bearish Scenario

A sustained move under $1327.30 will signal the presence of sellers. This could trigger a spike into the short-term Fibonacci level at $1321.90, followed closely by the uptrending Gann angle at $1320.70.

The angle at $1320.70 is a potential trigger point for an acceleration to the downside with the next target angle coming in at $1312.70. This is the last potential support angle before the $1304.70 main bottom.

Holding above the retracement zone at $1327.30 to $1321.90 is helping to generate a slight upside bias and the main trend is up. Missing, however, is a catalyst to drive up the buying volume.