Gold Struggles To Stay In Bullish Territory - Forex News by FX Leaders
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Gold Struggles To Stay In Bullish Territory

Posted Thursday, February 14, 2019 by
Shain Vernier • 1 min read

It has been an active session in gold, with prices rebounding from a significant sell-off during the U.S pre-market hours. A rapid break beneath the 1308.0 level for April GOLD futures prompted a test under last week’s bottom (1306.4) and daily downside support (1306.1). Since then, bullion has rallied on investor angst stemming from today’s lagging Retail Sales (Dec.) numbers.

As I mentioned earlier, the U.S./China trade negotiations in Beijing and a pending U.S. government shutdown are the key fundamentals driving today’s markets. Bullion has certainly been impacted, putting in a whipsaw session.

April Gold Futures: Technical Outlook

The 38% Current Wave Retracement (1312.2) continues to be a monster for April gold. Today marks the seventh straight day that this level has been traded. It is currently the premier two-way catalyst in this market.

April Gold Futures (GC), Daily Chart
April Gold Futures (GC), Daily Chart

Overview: At press time (11:45 AM EST), it appears that April gold is content to rotate in the vicinity of 1312.2. If we see a weekly close above this level, then the prevailing bullish trend of early 2019 will remain valid.

The earlier sell-off brought about a test of downside support at the daily Bollinger MP (1306.1). This area proved to be valid, with price quickly retreating from the intraday low of 1304.7. All in all, a quick bullish bounce following a sell-off seems to be the rule for bullion. Until proven otherwise, holding intermediate-term longs is a solid way of playing this market.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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