Gold technical analysis for November 20, 2015

Gold price has made a strong bounce yesterday towards the first important short-term resistance at $1,090. I have warned gold bears that this is not the time to go short on gold despite the new yearly lows. The price is at the oversold levels and on the top of the major long-term Fibonacci retracement.

Blue lines - bearish channel

Red line - resistance

Gold price is trading well below the Ichimoku cloud but has exited the bearish channel in the daily chart above. Stochastics are turning upwards implying that momentum will be bullish and a bounce towards $1,130 is very possible.

The weekly chart above shows that the price is at the important long-term Fibonacci retracement of 50%. The weekly stochastics have entered oversold levels. The last time this happened, saw a rise from $1,077 to $1,190. A minimum target of the expected bounce is seen at the level of $1,130 where we found the tenkan- and kijun-sen.The material has been provided by InstaForex Company - www.instaforex.com