Gold Price Futures (GC) Technical Analysis – June 18, 2018 Forecast

Gold futures are trading higher early Monday as aggressive investors take advantage of prices not seen since December 19. On Friday, gold plunged $29.80 or -2.33% on what looked like a delayed reaction to the Fed’s rate hike on Wednesday and the European Central Bank’s monetary policy moves on Thursday.

According to the headlines, long gold investors just decided to exit the market in droves for no particular reason. Much of the move, I suspect was fueled by sell-stops under a series of rising minor bottoms, and main bottoms at $1294.50 and $1286.80.

At 0121 GMT, August Comex Gold futures are trading at $1284.30, up $5.80 or +0.44%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1313.00 will change the main trend to up. On the downside, the nearest target is the December 12 main bottom at $1251.90.

Clawing back above the former bottoms at $1286.80 and $1294.50 will indicate that Friday’s selling was fueled by sell stops rather than aggressive shorting.

Additional resistance is a Fibonacci level at $1300.60.

Daily Technical Forecast

Based on Friday’s close at $1278.50 and the early price action, the direction of the August Comex Gold futures contract the rest of the session is likely to be determined by trader reaction to a downtrending Gann angle at $1282.40 and an uptrending Gann angle at $1283.90.

A sustained move under $1282.40 will indicate the presence of sellers. This move could lead to a test of Friday’s low at $1277.90. The daily chart opens up to the downside under this angle with the next target angle coming in at $1267.90. This is the last potential support angle before the $1251.90 main bottom.

A sustained move over $1283.90 will signal the presence of buyers. If this move gains traction then look for a possible retracement of the break from $1313.00 to $1277.90. This makes $1295.50 the minimum upside target.

Basically, look for an upside bias to develop on a sustained move over $1283.90 and for a downside bias to develop on a sustained move under $1282.40.