April Comex Gold traded steady to lower most of the session on Thursday as investors reacted to the European Central Bank’s latest monetary policy statement and concerns over a possible trade war. Traders are no preparing for Friday’s U.S. Non-Farm Payrolls report.
Daily Technical Analysis
The main trend is down according to the daily swing chart. Wednesday’s closing price reversal top took the wind out of the sail of the four-day counter-trend rally. The chart pattern was confirmed earlier on Thursday when sellers took out yesterday’s low at $1323.00.
The main trend will change to up on a move through $1364.40. Taking out $1303.60 will signal a resumption of the downtrend.
The minor trend is also down. A trade through $1342.00 will negate the closing price reversal top and change the minor trend to up.
The major support is the $1306.60 to $1291.50 retracement zone. This zone provided on March 1 when buyers stopped the sell-off at $1303.60.
The main range is $1364.40 to $1303.60. Its retracement zone at $1334.00 to $1341.20 stopped the rally at $1342.00 on Wednesday.
The short-term range is $1303.60 to $1342.00. Its retracement zone at $1322.80 to $1318.30 provided support on Thursday.
Daily Technical Forecast
Traders need to watch the price action and read the order flow on tests of the retracement zones at $1334.00 to $1341.20 and $1322.80 to $1318.30.
Trend traders are going to try to stop the rally at $1334.00 to $1341.20 in an effort to form a potentially bearish secondary lower top. Taking out $1342.00 should trigger an acceleration to the upside.
Aggressive counter-trend buyers are going to try to stop the selling on a test of $1322.80 to $1318.30 in an effort to form a potentially bullish secondary higher bottom. The trigger point for an acceleration to the downside is $1318.30.
Basically, we’re looking for a sideways trade inside $1342.00 to $1318.30. These two prices are also the breakout levels, however, we’re going to need a spike in volume to make them work.
This article was originally posted on FX Empire
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