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

December Comex Gold futures crossed to the bullish side of long-term downtrending angle, but the acceleration to the upside didn’t materialize as expected. This could be a sign that a big seller is out there defending the trend.

After walking up a steep uptrending angle for several days, it looks as if this angle is getting ready to fail unless there is a strong opening over $1239.30. Since the market closed at $1234.30, there is going to be an early downside bias.

Crossing under the long-term downtrending angle at $1230.30 will be another sign of weakness.

The daily chart opens up under this angle with $1211.30 the next likely downside target.

If a short-term range forms between $1183.30 and $1238.60 then also watch for a potential pullback into its pivot at $1211.00. This pivot actually forms a pretty tight support cluster with the angle at $1211.30, making it the best downside target today.

If the market can sustain a rally over $1239.30 then look for it to extend into the major 50% level at $1253.80. Taking out this level with conviction could mean a test of the Fibonacci level at $1270.40.

The tone of the market today will be determined by trader reaction to two levels. Look for a bearish tone if $1230.30 fails as support and a bullish tone to develop if traders can regain $1239.30.