During the previous trading week ending 26th August 2016, wave (5) could not close above the end of wave (3) thereby ending into a truncated 5th wave. Since the impulsive wave (3) was extensive in nature, there is probably less bullish pressure to push the price further to the upper side or even above the end of wave (3). Instead, we expect a corrective three wave cycle to the opposite side to to correct the previous impulsive wave with the wave (c) ending around 61.8 fib level. This commodity should be traded alongside Silver, these two commodities have a strong positive correlation of up to +0.93 and will have as similar price action during this week. You should only buy or sell Silver if gold is giving the same price action.
Right now is the best time to go short with an ideal target at the 61.8 Fib level.
Silver weekly review
During the previous trading week ending 26th August 2016, Silver markets traded massively short and ended up forming an extended wave (3). Although we expect further rally to the lower side, we will only be interested in the selling the impulsive wave (5) after a correction of wave (3). Thus, instead of going short immediately, we wait for the corrective corrective wave (4) to end around $19.03 then go short with wave (5). This commodity should be traded alongside Gold. These two commodities have a strong positive correlation of up to +0.93 and will have a similar price action during this week.
If you are not short already, wait for minor upward corrections towards $19.03 then go short with an ideal target at $17.78.
Oil weekly review
During The previous week ending 26th August 2016, Oil markets traded short and is still pretty much bearish on the daily chart. We expect to continue to the lower side with the impulsive wave [C] having 5 sub waves. Ideally, the three wave correction ([A]-[B]-[C]) should be such that it forms a 3-3-5 structure.The entire correction is flat correction with wave [C] ending around the 50.0 fib level but not below the 61.8 Fib level.
We wait and go short below 46.53 with an ideal target at the 50.0 fib level. A clear below this level will push the price further to the lower side but should not go beyond the 61.8.