Gold Price Futures (GC) Technical Analysis – May 20, 2019 Forecast

Based on the early price action, the support is a price cluster at $1273.30, $1272.70 and $1272.20. A sustained move over $1273.30 will indicate the presence of buyers. If this move generates enough upside momentum then look for a test of an uptrending Gann angle at $1279.30.
James Hyerczyk
Comex Gold

Gold futures are trading slightly higher shortly before the mid-session. The market is mounting a comeback from early session weakness that put it in a position to challenge a key 50% level at $1272.70 and a main bottom at $1267.30.

Helping to support the market is a weaker U.S. Dollar and lower demand for risky assets. A slight rise in U.S. Treasury yields is helping to put a lid on the intraday rally.

At 15:05 GMT, June Comex gold is trading $1278.40, up $2.70 or +0.23%.

Daily June Comex Gold

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top at $1304.20 on May 14. A trade through $1267.30 will change the main trend to down.

On the downside, the major support is the retracement zone at $1272.70 to $1253.00. On the upside, the major resistance comes in at $1299.10 to $1306.50.

The short-term range is $1267.30 to $1304.20. Its retracement zone is $1285.80 to $1281.40. The market is currently trading below this zone, giving it a slight downside bias.

Daily Technical Forecast

Based on the early price action, the support is a price cluster at $1273.30, $1272.70 and $1272.20.

Bullish Scenario

A sustained move over $1273.30 will indicate the presence of buyers. If this move generates enough upside momentum then look for a test of an uptrending Gann angle at $1279.30.

Overtaking $1279.30 will indicate the buying is getting stronger. This could lead to a labored rally with potential targets a short-term Fibonacci level at $1281.40, a short-term 50% level at $1285.80 and a downtrending Gann angle at $1288.20.

Bearish Scenario

The inability to overcome $1279.30 will indicate the presence of sellers. This could lead to a retest of the support cluster at $1273.30 to $1272.20.

Look for an acceleration to the downside if $1272.20 fails as support. This could trigger a break into the main bottom at $1267.30. This is the trigger point for an even steep decline with $1253.00 the next potential support target.

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