Comex Gold Futures (GC) Technical Analysis – August 25, 2015 Forecast

December Comex Gold futures posted a potentially bearish closing price reversal top on Monday. The chart pattern will be confirmed on a break through $1145.10. Based on the short-term range of $1108.50 to $1169.80, the primary downside objective today is its retracement zone at $1139.10 to $1131.90.

Currently, the market is straddling an uptrending angle at $1148.50. Trader reaction to this angle will likely determine the direction of the market today.

Holding above $1148.50 will signal the presence of buyers. Look for a labored rally, however, because of the tight resistance at $1156.30, $1160.30 and $1161.70. Overcoming and sustaining a rally over $1161.70 will indicate that the buying is getting stronger. This could trigger a rally into yesterday’s high at $1169.80.

Taking out $1169.80 will negate the closing price reversal top. This could trigger a surge to the upside with the next target coming in at $1183.80. This is also a trigger point for an acceleration to the upside with $1195.60 the next target. This is the last potential resistance before the $1207.30 main top.

A sustained move under $1148.50 will signal the presence of buyers. Taking out $1145.10 will confirm the closing price reversal top.

The first downside target is a major 50% level at $1140.50. This is followed closely by another 50% level at $1139.10 and the 61.8% level at $1131.90. Additional targets are an uptrending angle at $1128.50 and a pair of angles at $1118.50 and $1117.70.

Watch the price action and order flow at $1148.50. This will tell us whether the bulls or the bears are in control. The same goes for yesterday’s low at $1145.10. A trade through this price will confirm the potentially bearish closing price reversal top.