Gold Price Futures (GC) Technical Analysis – In Position to Post Potentially Bearish Closing Price Reversal Top

Based on today’s price action, the direction of the June Comex gold futures contract the rest of the session is likely to be determined by trader reaction to $1300.90. Today’s early price action has put the market in a position to post a potentially bearish closing price reversal top.
James Hyerczyk
Comex Gold

Gold futures are trading lower at the mid-session on Tuesday. Demand for the precious metal, and so-called “safe-haven” asset is being dampened by a stronger U.S. Dollar, firm Treasury yields and increasing demand for higher risk assets. The catalyst behind the weakness is the hope that U.S.-China negotiators will reach a trade deal agreement in a timely manner.

At 15:27, June Comex Gold futures are trading $1296.20, down $5.60 or -0.43%.

Daily June Comex Gold

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade though $1304.20 will signal a resumption of the uptrend. If this creates enough upside momentum then look for the rally to possibly extend into the next main top at $1314.70.

A trade through $1267.30 will change the main trend to down, but this is not likely today. However, the market is up eight sessions from the last main bottom, which puts it inside the window of time for a potentially bearish closing price reversal top.

Today’s early price action has put the market in a position to post a potentially bearish closing price reversal top. This makes yesterday’s close at $1300.90 a key level to watch the rest of the session.

The main range is $1330.80 to $1267.30. The market is currently testing its retracement zone at $1299.10 to $1306.50. This zone is controlling the near-term direction of the market.

The short-term range is $1314.70 to $1267.30. Its retracement zone at $1296.80 to $1291.30 is also being tested.

The major support zone remains $1272.70 to $1253.00.

Daily Technical Forecast

Based on today’s price action, the direction of the June Comex gold futures contract the rest of the session is likely to be determined by trader reaction to $1300.90.

Bearish Scenario

A sustained move under $1300.90 will indicate the presence of sellers. This will also put the market in a position to post a potentially bearish closing price reversal top. If confirmed, this could lead to a 2 to 3 day counter-trend correction.

The initial break is likely to be labored because of a number of potential support levels at $1299.30, $1299.10, $1296.80 and 1295.80.

The selling will start to open up to the downside under $1295.80 with the next targets coming in at $1291.70 and $1291.30.

The 50% level at $1291.30 is the trigger point for an acceleration to the downside with the next major target angle coming in at $1283.30.

Bullish Scenario

A sustained move over $1300.90 will signal the presence of buyers. The first target angle is $1303.20, followed by today’s intraday high at $1304.20. Taking out $1304.20 could trigger an acceleration into the Fibonacci level at $1306.50. Overtaking this level could trigger a surge into the next main top at $1314.70.

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