Yahoo Finance Gold Price Futures (GC) Technical Analysis – Rangebound Trade Indicates Trader Indecision, Impending Volatility
June Comex Gold futures are being driven lower by increased demand for higher risk assets on Tuesday. A strong recovery in the U.S. Dollar is also making gold a less-desirable investment. The Greenback was helped by a drop in the Euro.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart, however, momentum has been sideways the past four sessions.
A trade through $1369.40 will signal a resumption of the uptrend. The main trend will change to down on a move through $1322.60.
The minor trend is up. A trade through $1353.50 will signal a resumption of the minor trend. The minor trend will change to down on a move through $1335.50.
The price action is being controlled by a pair of retracement zones. The main retracement zone is $1342.40 to $1350.20. The minor retracement zone is $1346.00 to $1340.50. These levels have been acting like pivots, resistance and support the past 5 sessions.
Daily Swing Chart Technical Forecast
Based on the early price action, the direction of the gold market into the close will be determined by trader reaction to the main Fibonacci level at $1350.20 and the minor Fibonacci level at $1340.50.
A sustained move over $1350.20 will give the gold market an upside bias into the close. This could lead to a test of $1353.50. This is the potential trigger point for an acceleration to the upside.
A sustained move under $1340.50 will help form a strong downside bias with $1335.50 the next target.
This article was originally posted on FX Empire
