April Gold Posts 38% Retracement
If you like volatility, then the last three sessions in April gold futures have been just what the doctor ordered.
April GOLD futures have been on a 72-hour rollercoaster ride, featuring wide daily ranges and heavy participation. On Wednesday, prices rallied to a session high just beneath the 1350.0 handle at 1349.8. Since then, the FOMC Minutes release prompted a bullion bailout, and the market has fallen more than $17 per ounce.
April Gold Futures: Technical Outlook
If you like volatility, then the last three sessions in April gold futures have been just what the doctor ordered. Daily ranges have been epic: 191, 100, and 117 ticks. The action has driven a hard test of the 38% Current Wave Retracement (1332.6).
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At press time (about 12:00 PM EST), price has put in a session bottom of 1332.6. This area has held up as valid support on several occasions, but the market appears to be heading lower.
There are two levels to keep a close eye on until Friday’s closing bell:
- Resistance(1): Swing High, 1349.8
- Support(1): 38% Current Wave, 1332.6
Overview: The last time bullion challenged a daily 38% Fibonacci retracement level, we saw a two-week period of consolidation near 1312.0. While it is too early to tell for sure, gold may be primed to enter a similar pattern at 1332.0.
For now, the technical outlook for April gold is simple: as long as price remains above 1332.6, then the near-term bias has to be bullish and another run at 1350.0 is in the cards. If bullion sells-off beneath the 38% retracement, then a return to the 1325.0-1315.0 area becomes probable.
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