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08.12.2015 09:35 AM
Gold technical analysis for December 8, 2015

Gold prices pulled back yesterday towards $1,070 as we had expected. Now I expect gold prices to bounce towards new highs near $1,100 in the short term.

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Gold prices are above the Ichimoku cloud pulling back to test it after the upward breakout. Holding above the cloud and the kijun-sen (yellow indicator) in the 4-hour chart is a bullish sign. Breaking below it will not be good for bulls. Support is found at $1,070-68. Resistance is seen at $1,090.

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The weekly candles of gold prices remain below the weekly Ichimoku cloud and inside the downward sloping wedge. This implies a long-term trend remains bearish. However, stochastics are oversold and with prices at the lower boundary of the wedge, there is a strong probability of a bounce rather than a resumption of the downtrend.
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