03.12.201510:18 Forex Analysis & Reviews: Gold technical analysis for December 3, 2015

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Gold price reached a new lower low yesterday after breaking the short-term support at $1,060-65. Besides, it has reached our lower end of the target area touching $1,046. I continue to expect a big bounce towards $1,120-30 and I continue to believe this is not the time to be short or sell gold. This is the time to be looking for an opportunity to open long positions.

Blue line - bullish divergence

Gold price remains below the Ichimoku cloud confirming short-term trend remains bearish. However, despite the price reaching lower lows, the 4-hour stochastic is not following this scenario. There is a bullish divergence. This is not the time to be looking for short positions.

Red lines - declining wedge

Blue lines - projection

Gold price is at the lower wedge boundary. Weekly stochastic is oversold. We could slide lower towards $1,020-30, but in overall this is the time to be looking for an opportunity to open long positions as I expect gold price to make a strong bounce towards at least $1,120-30.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.