38% Fibonacci Support In Play For Gold - Forex News by FX Leaders
Fibonacci

38% Fibonacci Support In Play For Gold

Posted Monday, July 22, 2019 by
Shain Vernier • 1 min read

As we approach the mid-U.S. session, tight ranges are the rule as traders get back behind their desks from the weekend break. At press time, August gold futures are trading within a modest 78 tick range, very near a key Fibonacci support level.

Thursday and Friday of last week brought extreme volatility to gold. Stimulus-oriented comments from NY FED President Williams sent traders to their screens in droves, producing whipsaw trading conditions. Now, prices are tight and downside support at the daily 38% Fibonacci retracement is in play.

Fibonacci Support Proving Valid For August Gold

Amid a wide-open economic calendar, the gold market is in a relative holding pattern. Prices of the August futures contract are in consolidation near the 1427.0 handle.

August Gold Futures (GC), Daily Chart Fibonacci
August Gold Futures (GC), Daily Chart

Here are the levels to watch for the remainder of the session:

  • Support(1): 38% Fibonacci Retracement, 1427.8
  • Support(2): Daily SMA, 1410.9

Overview: At this point, the daily uptrend in gold remains valid. Prices are holding firm in the neighborhood of the 38% Fibonacci support level (1427.8). As long as this area is in play, then a bullish bias is warranted.

Although GOLD is currently becoming compressed, don’t get too used to the tight action. This week brings several key economic events and very likely a move in bullion. With a bit of luck, we will get a chance to buy in from the Daily SMA or sell the Spike High in the near future. Stay tuned for details on how to get in on the action as the week unfolds.

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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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