Comex Gold Futures (GC) Technical Analysis – July 15, 2014 Forecast

August Comex Gold futures sold off sharply on Monday after aggressive profit-taking triggered sell stops under a steep uptrending angle that had provided support for 18 days. Additional selling pressure hit gold when the major 50% level at $1316.10 was taken out. This led to a breakdown under the last main bottom at $1309.40, turning the main trend to down on the daily chart.

If the aggressive selling continues on Tuesday then look for an initial test of a pair of uptrending angles at $1298.20 and $1296.00. Watch for a technical bounce on the first test of this area. If it fails as support then look for the sell-off to continue into the retracement zone at $1293.50 to $1280.90.

If there is no follow-through to the downside and yesterday’s low at $1302.20 holds then look for a possible rally back to $1316.10. Extending the rally through this level could trigger an eventual move into $1324.50 to $1329.80.

Watch for a possible two-sided trade today. Although the main trend is down and the selling pressure may continue, it is also oversold on a short-term basis. This could mean a retracement to the upside in order to attract new short-sellers. Look for a choppy trade today.

If there is further selling pressure then profit-taking and counter-trend buying may begin when $1298.20 and $1296.00 are being tested. This could slow down the rate of the decline. It could come to a complete halt once the 50% level at $1293.50 is reached.