Gold technical analysis for November 5, 2015

The gold price continued with its downward move despite holding above the long-term support trend line coming from $1,080. Breaking below this trend line is not a good sign for gold bulls. A bounce towards $1,130 is confirmed here but it seems that we are not going to avoid a new low below $1,080.

Blue line - support trend line

The gold price remains below the Ichimoku cloud confirming that the short-term trend remains bearish. Stochastics is oversold with divergence and it could point to a bounce at least towards $1,130 where we find the 38% Fibonacci retracement.

The weekly chart remains bearish in the short term, since it broke below the tenkan-sen, and bearish in the longterm as it remains below the weekly Ichimoku cloud. Breaking below the blue upward sloping trend line is a bearish sign and it will increase the chances of a new low formation over the coming weeks. I remain neutral as I believe the downside is limited and too risky as I have no reversal signals yet.The material has been provided by InstaForex Company - www.instaforex.com