Comex Gold Futures (GC) Technical Analysis – October 12, 2014 Forecast
December Comex Gold futures posted a lower-high, lower-low and a lower-close on Friday. This makes $1234.00 a new minor top. The main trend is down, but a new minor range was formed between $1183.30 and $1234.00. This makes its pivot at $1208.60 the next potential downside target.
The first angle to watch today is $1223.30. Based on the close at $1221.70, the market is expected to open weak. This sets up an initial test of the 50% level at $1208.60, followed by a pair of angles at $1203.30 and $1193.30.
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If this market is setting up to move higher, then it has to pick up support on a pullback into the pivot at $1208.60 or the uptrending angles at $1203.30 and $1193.30. Bullish traders will try to form a secondary higher bottom.
On the upside, the first target is a long-term downtrending angle at $1234.30. The daily chart opens up over this angle with the next target the September 23 minor top at $1237.00 and a major 50% level.
The main range is $1324.30 to $1183.30. The retracement zone at $1253.80 to $1270.40 is the next major upside target, followed by a downtrending angle at $1279.30.
Watch the price action and order flow on a test of the pivot at $1208.60. Counter-trend buyers may show up at this level to support the market. This should correspond with a break in the U.S. Dollar.
If support for the dollar begins to erode considerably then watch for a possible breakout over the downtrending angle at $1234.30.