April Gold Posts 38% Retracement - Forex News by FX Leaders
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April Gold Posts 38% Retracement

Posted Thursday, February 21, 2019 by
Shain Vernier • 1 min read

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).

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

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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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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