Comex Gold

Gold Price Futures (GC) Technical Analysis – July 16, 2018 Forecast

Gold futures are trading a little higher early Monday. The market is catching a bid because of the weaker U.S. Dollar and a slight easing of demand for risky assets. The market is currently trading inside Friday’s range, which suggests investor indecision and impending volatility.

At 0731 GMT, August Comex Gold futures are trading $1242.90, up $1.70 or +0.14%.

Comex Gold
Daily August Comex Gold

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1236.20 will signal a resumption of the downtrend. This could trigger a further break into the July 7, 2017 main bottom at $1230.70. The main trend will change to up on a trade through $1266.90.

The short-term range is $1266.90 to $1236.20. Its 50% level or pivot at $1251.60 is the first upside target.

The intermediate range is $1274.40 to $1236.20. Its 50% level at $1255.30 is the next upside target. Since the main trend is down, we’re likely to see sellers on a test of $1251.60 to $1255.30.

The main range $1313.00 to $1236.20. If the trend changes to up then look for the rally to extend into its retracement zone at $1274.60 to $1283.70.

Comex Gold (Close-Up)
Daily August Comex Gold (Close-Up)

Daily Technical Forecast

Based on the early trade, the direction of the August Comex Gold market today is likely to be determined by trader reaction to the steep downtrending Gann angle at $1246.90.

A sustained move under $1246.90 will indicate the presence of sellers. If this generates enough downside momentum then look for a retest of $1236.20. If this price fails as support then look for the selling to extend into $1230.70. Crossing to the weak side of the steep downtrending Gann angle at $1229.00 will put gold in a bearish position.

A sustained move over $1246.90 will signal the presence of buyers. This could trigger a rally into a series of 50% levels at $1251.60 and $1255.30, followed by a downtrending Gann angle at $1256.90. Since the main trend is down, sellers could show up on a test of these levels.

Holding inside Friday’s range of $1236.20 to $1248.50 will indicate investor indecision and impending volatility. Look for the price action in the dollar to control the movement in gold futures today.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.