06.11.201411:07 Forex Analysis & Reviews: Gold Technical analysis for November 6, 2014

Long-term review

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Gold price after reaching our short-term target of $1,140-$1,135 is making a sideways consolidation similar to the one we saw a few days ago around $1,160-70. The trend remains bearish and I expect to see $1,110 if support at $1,135 is broken.

Gold is forming a bearish flag and remains below the Ichimoku cloud resistance. Breaking below $1,135 will give us anoter sell signal with $1,110-$1,105 target. Bears however should not get overexcited because I believe we are in the final stages of the decline that started at $1,255. Stops should be tight as a bounce towards $1,180 cannot be rulled out.

The trend remains bearish. All ichimoku cloud indicators point lower. A bounce towards $1,170 is very possible, however this should not worry longer-term bears. A bounce towards $1,170-$1,180 on the other hand is something we want in order to move away from the oversold levels in several indicators. This upward bounce should be seen as another opportunity to sell again. Until then, we need to wait and see if the short-term bearish flag will reach our target if $1,135 is broken.

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