Gold Price Futures (GC) Technical Analysis – Momentum is Building for Possible Test of $1370.00

April Comex Gold futures are trading higher this week after failing to follow-through to the downside, following last week’s potentially bearish closing price reversal top.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. A trade through $1349.20 will negate last week’s reversal top and signal a resumption of the uptrend. This could trigger a further rally into the last major main top at $1370.00.

A trade through $1329.10 will confirm the closing price reversal top. This could trigger the start of a 2 to 3 week correction.

On the downside, the support zone is the Fibonacci level at $1321.40 and the 50% level at $1306.40.

Weekly Technical Forecast

Based on this week’s price action, the direction of the gold market the rest of the week will be determined by trader reaction to the steep uptrending Gann angle at $1338.70.

A sustained move over $1338.70 will signal the presence of buyers. This could drive the gold market through the reversal top at $1349.20 and the downtrending Gann angle at $1350.00. Taking out this angle could trigger a further rally into the next downtrending Gann angle at $1360.00. This is the last potential resistance angle before the $1370.00 main top.

A sustained move under $1338.70 will indicate the presence of sellers. This will put the market in a position to drop further into a downtrending Gann angle at $1330.00 and the Fibonacci level at $1321.40.