Gold Price Futures (GC) Technical Analysis – May 8, 2019 ForecastBased on the early 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 the short-term 50% level at $1291.30.
Gold futures are moving higher on Wednesday with most of the buying attributed to the placement of safe-haven hedges due to the weakness in U.S. equity markets. The financial markets have been on edge since Sunday when President Trump threatened to place additional tariffs on Chinese imports. This is raising concerns that a deal to end the trade dispute between the U.S. and China may not be forthcoming in the near future as previously anticipated.
At 12:48 GMT, June Comex gold is trading $1292.40, up $6.60 or +0.50%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The main trend changed to up earlier today when buyers took out $1290.90. A trade through $1267.30 will change the main trend to down.
On the downside, the major retracement zone support is $1272.70 to $1253.00.
The short-term range is $1314.70 to $1267.30. Its retracement zone at $1291.30 to $1296.80 is currently being tested. This could become resistance. Watch the price action on a test of this zone.
The main range is $1330.80 to $1267.30. If the rally continues to gain traction then look for a move into its retracement zone at $1299.10 to $1306.50.
The combination of the two retracement zones creates a potential resistance cluster at $1296.80 to $1299.10.
Daily Technical Forecast
Based on the early 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 the short-term 50% level at $1291.30.
A sustained move over $1291.30 will indicate the presence of buyers. However, the next move could be labored because of a series of potential resistance levels including a downtrending Gann angle at $1295.70, a Fibonacci level at $1296.80, a 50% level at $1299.10 and a downtrending Gann angle at $1299.80. The market begins to open up to the upside if $1299.80 is taken out with strong volume.
A sustained move under $1291.30 will signal the presence of sellers. This could trigger a move into a steep uptrending Gann angle at $1283.30. Look for an acceleration to the downside if this angle fails with the next support angle coming in at $1275.30.