Gold Price Futures (GC) Technical Analysis – May 20, 2019 Forecast
Gold futures are trading slightly higher shortly before the mid-session. The market is mounting a comeback from early session weakness that put it in a position to challenge a key 50% level at $1272.70 and a main bottom at $1267.30.
Helping to support the market is a weaker U.S. Dollar and lower demand for risky assets. A slight rise in U.S. Treasury yields is helping to put a lid on the intraday rally.
At 15:05 GMT, June Comex gold is trading $1278.40, up $2.70 or +0.23%.
Daily Technical Analysis
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 at $1304.20 on May 14. A trade through $1267.30 will change the main trend to down.
On the downside, the major support is the retracement zone at $1272.70 to $1253.00. On the upside, the major resistance comes in at $1299.10 to $1306.50.
The short-term range is $1267.30 to $1304.20. Its retracement zone is $1285.80 to $1281.40. The market is currently trading below this zone, giving it a slight downside bias.
Daily Technical Forecast
Based on the early price action, the support is a price cluster at $1273.30, $1272.70 and $1272.20.
Bullish Scenario
A sustained move over $1273.30 will indicate the presence of buyers. If this move generates enough upside momentum then look for a test of an uptrending Gann angle at $1279.30.
Overtaking $1279.30 will indicate the buying is getting stronger. This could lead to a labored rally with potential targets a short-term Fibonacci level at $1281.40, a short-term 50% level at $1285.80 and a downtrending Gann angle at $1288.20.
Bearish Scenario
The inability to overcome $1279.30 will indicate the presence of sellers. This could lead to a retest of the support cluster at $1273.30 to $1272.20.
Look for an acceleration to the downside if $1272.20 fails as support. This could trigger a break into the main bottom at $1267.30. This is the trigger point for an even steep decline with $1253.00 the next potential support target.
This article was originally posted on FX Empire
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