Technical analysis of gold for December 1, 2016

Gold price made a new low yesterday. I warned that a break below $1,177 would open the way for a new low. A trend remains bearish but I believe we are at the final stages of the decline and traders should focus on the upside.

Black lines - bearish channel

Gold price is oversold on the 4-hour chart and bouncing off the lower channel boundary. Price however remains inside the bearish channel and below the Ichimoku cloud. Only a break above $1,200 will confirm a short-term trend change to bullish.

The weekly candle remains inside the cloud and on top of the 61.8% Fibonacci retracement. A weekly close below $1,170 will open the way for a push towards $1,120 however this is not the time to open new short positions. Gold bears need to be very cautious and lower their stops as I still believe Gold is in the process of making a long-term low.The material has been provided by InstaForex Company - www.instaforex.com