Technical Analysis

Gold futures (GC) short trade update as price falls

  • The short trade from two weeks ago is working nicely.
  • What we can do with the position moving forward.
  • Weekly candles show bearish wicks.


Two weeks ago, we looked at the candlestick that formed on the daily chart in GC, which eventually closed as a spinning top at the top of an up trend. It signals to us that there is much confusion in the market when a candlestick like this forms, and this gave us a short opportunity. You can read the article here.

Moving forward

Price action has been bearish recently, and the top of that candlestick will be a difficult one to break for the bulls. At this point, it could be a good idea to take profit slowly while leaving at least 50% of the position open for a potential move even lower. Targets for the move extending lower would be $1,949.3.

GC daily cahrt showing up trend lines and a bearish target
GC Daily Chart

Weekly Chart

I want to point something out on the weekly chart, and it’s the fact that there is a lot of sell pressure above the $2,030 level. This is emphasized by the bearish wicks which keep suppressing the price. Traders should factor this into their technical analysis because it tells us that there is a very strong resistance level forming. Bulls could find it very difficult to make new highs this year, by the look of it.

GC Weekly chart showing bearish candles
GC Weekly Chart