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Gold Price Futures (GC) Technical Analysis – Plenty of Room to Downside with Target $1312.40 to $1309.30

James Hyerczyk

Gold futures succumbed to pressure from a stronger dollar, increased demand for higher risk assets and the easing of geopolitical concerns to close lower at the end of the week.

June Comex gold futures settled at $1327.30, down $2.70 or -0.20%.

Daily June Comex Gold

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 on March 27.

A trade through $1312.40 will change the main trend to down. This is followed closely by another main bottom at $1309.30.

A move through $1362.60 will negate the reversal top and signal a resumption of the uptrend with potential targets main tops at $1369.60 and $1375.50.

The short-term range is $1312.40 to $1362.60. Its retracement zone at $1331.60 to $1337.50 is the first layer of resistance.

The main range is $1375.50 to $1309.30. Its retracement zone at $1342.40 to $1350.20 is the primary upside target.

Based on the close at $1327.30, the short-term direction of the market is likely to be determined by trader reaction to the Fib level at $1331.60.

A sustained move under $1331.60 will indicate the presence of sellers. We could see an acceleration to the downside with targets coming in at $1312.40, $1311.40 and $1309.30.

Overcoming and sustaining a move over $1331.60 will indicate the return of sellers. This could generate the momentum needed to challenge $1337.50 and $1342.40.

Remember that despite the volatility, the trend is up so buyers could step in to stop this price slide.


This article was originally posted on FX Empire