Comex Gold Futures (GC) Technical Analysis – October 23, 2014 Forecast

After reaching a major 50% level earlier in the week, December Comex Gold sold off on Wednesday, making $1255.60 a new minor top. This also created a new minor range with the minor bottom at $1222.00.  The pivot price controlling the short-term direction of the market is $1238.80.

The nearest uptrending support angle is at $1246.00.  If this angle fails then look for investors to go after the short-term pivot at $1238.80. A break through this angle will trigger a further decline into the next major uptrending angle at $1235.30.

The daily chart opens up under $1235.30. The pivot price created by the $1183.30 to $1255.60 range at $1219.40 is the best downside target.

Holding the pivot at $1238.80 and the angle at $1246.00 will be a sign that buyers are still coming in to support the market.

The main range is $1324.30 to $1183.30. Its retracement zone at $1253.80 to $1270.40 stopped the market earlier in the week at $1255.60. This is the primary upside target along with a long-term downtrending angle at $1271.30.

The tone of the market today is likely to be determined by trader reaction to the short-term pivot at $1238.80. Watch the price action and order flow at this price to see if the interest is on the long side or the short side. A lot will depend on what the U.S. Dollar is doing. A bullish dollar will be bearish for gold.