Technical analysis of gold for November 23, 2016

Gold price continues to trade sideways around the $1,220-$1,210 area where the 50% Fibonacci retracement of the entire rise from $1,045 is found. Gold price has not given any confirmation of a trend reversal, so a trend remains bearish and price is in danger of breaking below $1,200. My longer-term view remains bullish Gold.

Blue line - trend line resistance

Red rectangles - resistance levels

Gold price continues to trade below the Ichimoku cloud on the 4-hour chart. Price is moving sideways. Short-term resistance is at $1,220 and next at $1,230 where the Ichimoku cloud is found. Support is at $1,204. If broken, we will see price below $1,200 and could fall as far as the $1,170-$1,180 area.

Gold price is at the 50% Fibonacci retracement and at the upper cloud boundary support. We may see a new decline to flush out weak longs but overall I expect either from current levels or from the 61.8% Fibonacci retracement a strong upward reversal.The material has been provided by InstaForex Company - www.instaforex.com