Technical analysis of gold for December 6, 2016

Gold price remains above a critical long-term support area at the 61.8% Fibonacci level of the entire rise from $1,045 to $1,375. Buying interest is shown each time Gold price dips below $1,170 for the last couple of weeks and this is clearer seen on the weekly chart.

Black lines - bearish channel

Gold price remains inside the bearish short-term channel and below the Ichimoku cloud. A short-term trend remains bearish but very close to changing. I expect an upward move in Gold that will break above $1,200 and change the short-term trend to bullish. Short-term support is at $1,160 and resistance at $1,190-$1,200.

The two last weekly candles have long lower tails while their bodies remain above the 61.8% Fibonacci retracement. The stochastic oscillator is for quite a long-time in oversold levels and diverging. I continue to expect a strong upward reversal from this area. If support fails we should expect a new low near $1,120.The material has been provided by InstaForex Company - www.instaforex.com