Comex Gold Futures (GC) Technical Analysis – October 28, 2014 Forecast

December Comex Gold futures inched lower on Monday, putting the market in a position to weaken further. The main range is $1183.30 to $1255.60, making the primary target its retracement zone at $1219.40 to $1211.00.

An uptrending angle from the $1183.30 bottom passes through the retracement zone at $1217.30, making it a valid target today.

The upcoming test of the retracement zone is very important to the near-term structure of the market. Buyers will likely show up inside the retracement zone in an effort to form a potentially bullish secondary higher bottom. Bearish traders will use this zone as a launching pad for an acceleration to the downside. Whoever wins the trading battle inside $1219.40 to $1211.00 will likely set the tone of the market for the near-term.

Watch for profit-taking or aggressive counter-trend buying on the first test of $1219.40. This could produce an intraday technical bounce.