Technical analysis of gold for November 11, 2016

The gold price has broken through important support levels and is heading towards recent lows $1,250-$1,240. The trend is bearish for the short-term. The price could be heading towards $1,220-$1,180, but overall longer-term view remains very bullish as an important long-term low is at $1,045.

Red line - support (broken)

The gold price has broken below the red trend-line support and the Ichimoku cloud. Support is at $1,240 and resistance is at $1,270. Only a break above $1,270 could increase bulls' chances for a reversal. Oscillators are diverging in the short term so a bounce to back-test the broken trend line at $1,270 could be justified.

On a daily basis the price has reached the 88.6% Fibonacci retracement. The price remains below the Ichimoku cloud after being rejected at $1,340. Only a break above the Ichimoku cloud on a daily basis will confirm that the uptrend is back on track. Until then we could see a deep decline towards $1,220 to complete the entire correction of the rise from $1,045 to $1,375.The material has been provided by InstaForex Company - www.instaforex.com