For Traders

Analytical Reviews

Technical analysis

16.12.201609:50 Forex Analysis & Reviews: Technical analysis of gold for December 16, 2016

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Gold price made a new low towards our next target of $1,120 where the 78.6% Fibonacci retracement of the entire 2015-2016 rise is found. Trend remains bearish. However these price levels are very important as from these levels we could see at least a short-term bounce.

Gold price is trading below both the tenkan- and kijun-sen (red and yellow line indicators). As long as price remains below them there is no chance of a bounce. Cloud resistance is at $1,165 and only if price breaks above we could say that short-term trend has changed to bullish.

As said above, price reached very close to the 78.6% Fibonacci retracement of the entire rise. A strong bounce is justified from current levels. $1,220 could be the first target as this is the lower cloud boundary. Price is also inside a downward sloping wedge. If broken upwards we could even see a bounce towards the start of the wedge around $1,280-$1,300.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.