April Comex Gold futures are trading lower shortly before the regular session opening. The market is trading below yesterday’s low, coming within striking distance of a major retracement zone. Earlier today, it turned lower for the year.
Daily Technical Analysis
The main trend is down according to the daily swing chart. However, the market is in the window of time for a closing price reversal bottom.
The main range is $1242.70 to $1370.50. Its retracement zone at $1306.60 to $1291.50 is the primary downside target.
Daily Technical Forecast
Based on the current price at $1314.20 and the earlier price action, the direction of the gold market today is likely to be determined by trader reaction to the 50% level at $1306.60.
Holding above $1306.60 will indicate the presence of buyers. If they create enough upside momentum, we could see a drive into an uptrending Gann angle at $1320.70. This angle was tested on the opening.
The angle at $1320.70 is a potential trigger point for an acceleration into a steep downtrending Gann angle at $1330.50. This angle, moving down at a rate of $4.00 per day from the $1370.50 main top, has been guiding the market lower for 10 trading sessions.
Taking out $1306.60 will indicate the selling is getting stronger. If there is an acceleration to the downside, we could see a drive into the Fibonacci level at $1291.50.
Watch the price action and read the order flow inside $1306.60 to $1291.50. If an intraday support base forms, we could see a late session rally and a possible closing price reversal bottom.