FX.co ★ Gold technical analysis for November 16, 2015

Gold price has finished its decline from $1,190 at a new low of $1,074. Is this a long-term low? For now, we can be pretty sure that at least a bounce should be expected. As I mentioned in the previous posts, gold is at the long-term support level, and bears should be very cautious.

Blue parallels - bullish short-term channel

Blue TL- Resistance

Gold price has bounced towards the Ichimoku cloud resistance and has started moving towards higher highs and higher lows in the 4-hour chart. Above $1,130, we can say that short-term trend has changed. Until then, I prefer to stay neutral or place stops for long positions at last week's lows.

Gold is testing tenkan-sen resistance at $1,100. The daily stochastic is turning upwards with a bullish crossing. I think we can see a bounce towards at least$1,120-30 where we find the 38% Fibonacci retracement and the Ichimoku cloud. This is the time to be long on gold but not short.