Gold Price Futures (GC) Technical Analysis – March 7, 2019 Forecast

Gold prices are showing little reaction to the European Central Bank’s announcement of another program to stimulate bank lending in the Euro Zone, for a third time. The news triggered a spike to the downside in the Euro, which fueled a positive response in the U.S. Dollar Index. Typically, a stronger dollar puts pressure on gold, however, today’s price action suggests gold investors may have already priced in the news.

At 13:22 GMT, April Comex gold is trading $1287.30, down $0.40 or -0.03%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed earlier in the session when sellers took out a swing bottom at $1281.50. A trade through today’s intraday low at $1280.80 will indicate the selling pressure is getting stronger.

The market is in no position to change the main trend to up, however, it is in the window of time for a closing price reversal bottom. A close over $1287.60 will form this chart pattern. If confirmed, we could see a 2 to 3 day counter-trend rally.

The minor trend is also down. A trade through $1291.80 will change the minor trend to up. This will also shift momentum to the upside.

The main range is $1209.30 to $1349.80. Today’s low at $1280.80 is slightly above the upper-level of its retracement zone at $1279.60 to $1263.00.

Daily Technical Forecast

Based on the early price action, the direction of the April Comex gold market the rest of the session is likely to be determined by trader reaction to a long-term uptrending Gann angle at $1285.30.

Bullish Scenario

A sustained move over $1285.30 will indicate the presence of buyers. The first target is the minor top at $1291.80. Taking out this level could trigger an acceleration to upside with the next major target a steep downtrending Gann angle at $1305.80. Since the main trend is down, sellers are likely to show up on a test of this angle.

Bearish Scenario

A sustained move under $1285.30 will signal the presence of sellers. This could trigger a retest of today’s low at $1280.80, followed by the main 50% level at $1279.60. Look for a technical bounce on the first test of this level.

The 50% level at $1279.60 is also the trigger point for an acceleration to the downside with the next major target the Fibonacci level at $1263.00.