Gold Price Futures (GC) Technical Analysis – Sustained Move Over $1788.50 Targets $1817.60
The direction of the June Comex gold market on Monday is likely to be determined by trader reaction to $1788.50.
Gold futures are trading higher on Monday as the U.S. Dollar gave back earlier gains and U.S. Treasury yields retreated. The market is now in a position to breakout over a major long-term 50% level.
At 14:04 GMT, June Comex gold futures are trading $1793.90, up $26.20 or +1.48%.
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Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through $1798.40 will reaffirm the uptrend. The main trend will change to down on a move through $1723.20.
Taking out $1798.40 will turn $1754.60 into a new main bottom.
The long-term trading range is $1464.20 to $2112.70. The market has been trading inside its 50% to 61.8% retracement zone at $1788.50 to $1711.90 since late February.
After a failed attempt to breakout to the downside through $1711.90 in March, the market is now attempting to breakout to the upside over $1788.50.
Daily Swing Chart Technical Forecast
The direction of the June Comex gold market on Monday is likely to be determined by trader reaction to $1788.50.
Bullish Scenario
A sustained move over $1788.50 will indicate the presence of buyers. This could trigger a move into the $1798.40 main top.
Taking out $1798.40 will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the February 23 main top at $1817.60 the next major upside target. A sustained move over this level could extend the rally into the February 10 main top at $1858.90.
Bearish Scenario
A sustained move under $1788.50 will signal the presence of sellers. This could lead to a labored break with potential downside targets coming in at $1776.50, $1760.80 and $1754.60.
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