Comex Gold Futures (GC) Technical Analysis – October 16, 2014 Forecast

December Comex Gold futures had a volatile trading session on Wednesday, posting an outside move and a higher close. The catalyst behind the volatility was a sudden break in the U.S. Dollar. Traders should be prepared for more volatility today. Watch the price action in the dollar for clues as to the markets next move.

The close at $1244.80 was near the session’s high, but slightly below a steep angle which moves up to $1247.30 today. Overcoming this angle will put the market in a strong position.

The main range is $1324.30 to $1183.30. Its retracement zone at $1253.80 to $1270.40 is the next major upside target. Since the main trend is down on the daily chart, traders should watch for sellers on a test of this retracement zone.

A breakout over the upper or Fibonacci level at $1270.40 could trigger a further rally into a long-term downtrending angle at $1276.30. This is followed by still another angle at $1300.30.

A failure to overcome $1247.30 will be a sign of weakness and selling pressure. Look for further weakness if gold breaks to the weak side of a downtrending angle at $1228.30. This could trigger further selling pressure into the next uptrending angle at $1215.30.

The tone of the day will be determined by trader reaction to the steep uptrending angle at $1247.30.