Gold Price Futures (GC) Technical Analysis – October 25, 2018 Forecast

Gold futures are trading higher but off their highs. Sellers came in after an early session rally failed to take out Tuesday’s high at $1243.00 despite yesterday’s steep drop in stocks which should’ve led to some safe-haven buying. Stocks are recovering from yesterday’s beat down as we approach the cash market opening. Gold could feel further downside pressure if stocks continue to rebound. However, there is always the possibility of a surprise breakout to the upside if stocks get hit hard once again.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1243.00 will signal a resumption of the uptrend. The first target is the next main top at $1244.70. This is followed by another main top at $1278.20. The market isn’t close to changing the main trend to down, but it is in the window of time for a closing price reversal top.

The main range is $1278.20 to $1167.10. Its retracement zone is $1222.70 to $1235.80. This zone is controlling the near-term direction of the market. Holding above $1235.80 will give the market an upside bias. A break under $1222.70 will shift sentiment to the downside.

On the upside, the next target is the 50% level at $1246.30. This is followed by a Fibonacci level at $1264.90 and another 50% level at $1277.50.

The short-term range is $1184.30 to $1243.00. If $1222.70 fails as support then its retracement zone at $1210.60 to $1204.40 will become the primary downside target.

Daily Technical Forecast

Based on the early price action, the direction of the December Comex Gold futures contract the rest of the session is likely to be determined by trader reaction to the long-term downtrending Gann angle at $1239.70.

A sustained move under $1239.70 will indicate the presence of sellers. Crossing to the weak side of the Fibonacci level at $1235.80 will indicate the selling is getting stronger. If this move creates enough downside momentum then look for a potential break into the support cluster at $1222.70 to $1222.30. This cluster is formed by a 50% level and uptrending Gann angle, respectively. Since the main trend is up, buyers could step in on a test of this area.