Technical analysis of gold for December 7, 2016

The gold price remains near its lows while still trading inside the bearish channel. There is no reversal confirmation yet. The trend remains bearish. A long-term view remains optimistic supposing that a trend reversal will occur soon.

Black lines - bearish channel

Short-term support is at $1,159 and short-term resistance is at $1,190. The trend remains bearish. The price is below the Ichimoku cloud and inside the bearish channel. Oscillators are diverging.

Weekly gold candle is at the lower boundary of the Ichimoku cloud and at the 61.8% Fibonacci retracement. This is an important support and a possible turn point. Next important support is at $1,120, but out and below the weekly Kumo (cloud). Bulls need a lot of work to do to turn this around. I still expect that traders should be patient and wait for a reversal confirmation signal.The material has been provided by InstaForex Company - www.instaforex.com