Remain Flat on Gold
Gold Weekly Review
As previously forecasted, Gold markets broke below the contracting wedge, headed short and is still pretty much bearish both the daily and monthly charts. During this week, we expect to continue short with the current impulsive rally but should not go beyond $1100. Instead of going short immediately, we choose to sit on the sidelines and wait for a clear breakout below the support level $1244 to give us the green light to continue short. We hope to trade this commodity alongside Silver. These commodities have a strong positive correlation of up to 86% and will have a similar price action during during this week.
Wait for a clear breakout below $1244 to go short with an ideal target at $1100
Silver Weekly Review
As anticipated, silver markets broke below the contracting wedge, headed short and even hit our first objective support level at $17.25. This commodity is still pretty much bearish on the weekly chart and will likely head further to the lower side during this week. Thus, buy orders are very much risky at this time, instead, we choose to sit on the fence and wait for a clear breakout below $17.25 to continue short while a clear rebound from this support level will culminate into a possible bullish price rally towards $18.46. Trade this commodity alongside Gold, these two commodities will have a similar price action during this intraday.
Remain flat for now and wait for a clear breakout below $17.25 to go short with an ideal target at $16.16.
Oil Weekly Review
Instead of going short as previously forecasted, the commodity broke above the resistive level $48.51, headed long but is currently retracing to the just broken level. The current downward rally is a mere correction of the impulsive rally (3) and should not go beyond the support level $48.51. Instead of executing long orders immediately, we sit on the sidelines and wait for the current downward rally to rebound from the support level $48.51 to buy the next motive wave (5) with the first target at $51.63.
We are long from 48.51 with the first target at $51.63 and the next target at $57.00