Advertisement
Advertisement

Gold Price Futures (GC) Technical Analysis – Key Pivot into Close $1342.70

By:
James Hyerczyk
Published: Jun 7, 2019, 19:27 GMT+00:00

Based on the current price at $1344.50 and the earlier price action, the direction of the August Comex gold futures contract is likely to be determined by trader reaction to the downtrending Gann angle at $1342.70.

Comex Gold

Gold futures are higher late Friday during the extended trading period. However, it’s trading near the mid-point of the session after hitting its highest level since February 21 earlier in the day. Lower Treasury yields led to a weaker U.S. Dollar, and a weaker dollar drove up demand for dollar-denominated gold.

The catalyst behind the price action was a weaker-than-expected U.S. Non-Farm Payrolls report, which raised the chances of an earlier than expected U.S. Federal Reserve rate cut.

At 19:02 GMT, August Comex gold futures are trading $1344.50, up $1.80 or +0.13%.

Comex Gold
Daily August Comex Gold

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through today’s intraday high at $1352.70 will signal a resumption of the uptrend. This could lead to an eventual test of the next main top at $1361.50. The rally could extend into main tops at $1405.90 and $1413.30 over the near-term.

The market is in no position to change the main trend to down, but due to the prolonged move up in terms of price and time, it is ripe for a potentially bearish closing price reversal top.

The main range or contract range is $1413.30 to $1202.00. Its 50% to 61.8% retracement zone is $1307.70 to $1332.60. This zone is controlling the longer-term direction of the market. Trading above it will help maintain the strong upside bias. Longer-term traders should consider this zone support.

Comex Gold
Daily August Comex Gold (Short-Term)

Daily Technical Forecast

Based on the current price at $1344.50 and the earlier price action, the direction of the August Comex gold futures contract is likely to be determined by trader reaction to the downtrending Gann angle at $1342.70.

Bullish Scenario

A sustained move over $1342.70 will indicate the presence of buyers late in the session. If they’re able to create enough upside momentum we could see a drive into the downtrending Gann angle at $1352.10, followed by today’s intraday high at $1352.70.

Bearish Scenario

A sustained move under $1342.70 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the major Fibonacci level at $1332.60, followed by a steep uptrending Gann angle at $1322.60.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?

Advertisement