Comex Gold Futures (GC) Technical Analysis – October 17, 2014 Forecast

December Comex Gold futures closed lower on Thursday, giving it a slight downside bias on the opening today. The inside day, however, suggests traders should watch for better-than-average volatility.

The short-term range is 1250.30 to 1222.00. The pivot price formed by this range at $1236.10 is controlling the short-term direction of the market today. If the pivot fails as support then look for the start of a retracement of the $1183.30 to $1250.30 range. This makes its 50% level at $1216.80 the best downside target.

The nearest uptrending support angle is $1219.30.

The first resistance is this week’s high at $1250.30. This is followed by the major 50% level at $1253.80.

Overcoming the steep uptrending angle from the $1183.30 bottom at $1255.30 will put the market in a strong position. This may generate enough upside momentum to trigger a rally into the Fibonacci level at $1270.40.

The early tone of the session will be determined by trader reaction to $1236.10. A bearish tone will develop if this level fails. A bullish tone will develop over $1253.80.