Comex Gold Futures (GC) Technical Analysis – June 25, 2014 Forecast

August Comex Gold futures poked higher to $1326.60 on Tuesday, but the market remained inside the major retracement zone which should determine the market’s next move. If there is no follow-through move then the rally was likely triggered by buy stops rather than real buying. If investors don’t bite on a breakout rally, then look for the start of a pullback into the nearest value zone.

The main range is $1392.00 to $1240.20. The retracement zone formed by this zone is $1316.10 to $1334.00. This is the zone that is currently being tested.

The short-term range is $1258.00 to $1326.60. The short-term retracement zone is $1292.30 to $1284.20. This is the best downside target. If investors back away from buying strength then they are saying they want a better entry price.

A downtrending angle from the $1392.00 top crosses the $1316.10 to $1334.00 retracement zone at $1322.00 today. Holding this angle will indicate that sellers are taking control. This could lead to a break under the 50% level at $1316.10 which will be a sign of weakness.

Crossing to the bullish side of this angle will indicate that buyers are getting the upper hand while taking out the Fib level at $1334.00 will be a sign of strength.

The first downside target today is a steep uptrending angle at $1306.00. A sustained move under this price should lead to a test of the short-term retracement zone at $1292.30 to $1284.20 where the value seekers will likely be waiting.