Consolidation in silver
Gold weekly review:
During the previous trading week ending 21st Oct 2016, gold markets retraced to the upper side but is currently declining in an upward momentum. We expect the level $1268.91 to have marked the end of the corrective wave (b) and that the current downward rally is the unfolding of the impulsive wave (c) towards $1214 or even lower. Thus, we are only short but only up to $1214, any clear breakout below will call for further short positions. Expect a similar wave count in Silver, silver and gold have a very strong positive correlation of up to +86% and will have a similar price action during this intraday.
Remain short with an ideal target at $1214
Silver weekly review:
Since 10th Oct 2016, Silver markets entered into consolidation not going above $17.79 or below $17.05. As long as Silver trades within this equilibrium zone, we choose to sit on the sidelines and only execute an order upon a clear breakout out of this zone. Although chances of breakout above the zone are high, we cannot rule out the possibility of breaking below $17.05, if this is the case, then we expect further acceleration to the lower side. The latter is highly likely since Gold, a positive correlated commodity, is declining in an upward momentum and could head to the lower side during this week.
Expect a possible breakout below $17.05 to go short with an ideal target at $15.33.
Oil weekly review:
Earlier the previous week, the Crude oil, retraced to the lower side but could not hit our target support level at $48.51. We expect to continue to the upper side with the extensive wave (3) and may go beyond $56.78. Earlier this week, we still expect further corrections of the motive wave (3) but should not go beyond the support level $48.51 from where we'll be looking for low risk buy opportunities. The weekly chart is showing signs of decline in an upward momentum, which means the anticipated upwards rally could be short lived and may not go beyond $57.00.
Expect a possible bullish price rally towards $56.78.