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

December Comex Gold futures traded lower on Monday which was expected because of the downside momentum on the close on Friday. Buyers came in at $1226.30, however, producing a potentially bullish closing price reversal bottom.

This chart pattern is not suggesting the main trend is getting ready to turn higher, but it does indicate it may be preparing for a strong short-covering rally. The chart pattern will be confirmed on a trade through $1239.30.

The first minor objective is the old bottom at $1241.70. This could stop the rally temporarily because old bottoms tend to become new tops. The best objective today is a downtrending angle from the $1347.50 top at $1253.50.

If there is no confirmation, or if it fails to trigger a strong short-covering rally then look for traders to go after the bottom at $1226.30. The first objective on a break through this bottom is $1222.00 to $1220.00.

The tone of the day will be determined by whether buyers can confirm the reversal bottom on a trade through $1239.30. Taking out then sustaining a move over this level could trigger a strong short-covering rally.  Otherwise, look for the rally to die and the market to resume the downtrend.