Wave analysis of gold for November 15, 2016

Gold price is in wave 2 and has already touched the Ichimoku cloud support and started a bounce. Gold price has made a long-term low at $1,045 according to my analysis and 5 waves up followed and we are now in a three-wave corrective phase.

Black lines - bearish channel

Gold price has broken out of the bearish channel. Gold price is showing signs of a reversal. Resistance is at $1,275. Oscillators are turning upwards from oversold levels having provided divergence signals. I'm short-term bullish again, but I remain long-term bullish.

Gold price is in wave 2. This wave could pull back even towards $1,170 where the 61,8% Fibonacci retracement is found. The Stochastic oscillator is providing a bullish divergence and is oversold. The next leg up in Gold will be very strong and will push price above the long-term resistance green trend line.The material has been provided by InstaForex Company - www.instaforex.com