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Bearish Momentum Developing in Gold

Gold weekly Review

Bearish Momentum Developing in Gold

Weekly Review:

Gold is currently trading with an increasing bearish momentum. During the previous trading week ending 11th Nov 2016, Gold markets fell relentlessly  and even broke below a key support level $1251. This level acted as a  key demand level between 6th to 17th of this previous month and should act as a supply level should price get back to it. As long as this level protects the upper side, we expect a possible bearish wave count towards 1178 or even lower. Expect a similar price action in Silver. These two commodities have a strong positive correlation of up to +89% and will have a similar price action during this week. Only Buy or sell gold if silver is giving the same signal.

Trade Recommendations:
 
Wait for minor upward pullbacks towards $1251.71 to go short with an ideal target at $1178

Silver weekly Review

Bearish Momentum Developing in Gold

Wave Analysis:

Just as in Gold, Silver markets dropped drastically but could not close below the support level $17.26. Instead, the commodity is stalling around this level and will likely trade on the higher ranges. We expect either a clear breakout below $17.07 to confirm a continuation of the downward trend, or a possible consolidation around this level. Any clear rebound from this level will call for long positions with the fist target at $18.56 and the next target at $19.0. Trade this commodity alongside Gold, These two commodities have a strong positive correlation of up to +89% and will have a similar price action during this intraday. Ideally, gold is dragging silver along with it, any clear movements in gold will call for a similar move in silver.

Trade Recommendations:
 
Wait for a clear breakout below $17.07 to short with an ideal target at $15. Any clear rebound above 17.26 will call for long positions with the first target at 18.56 and the next target at $19.
 
Oil weekly Review
Bearish Momentum Developing in Gold

Wave Analysis:

During the previous trading week ending 11th Nov 2016, The Crude oil fell drastically but is yet to close below the weekly support level $43.12. Unless there is a clear breakout below this support level, we choose to sit on the sidelines and expect a possible consolidations around this level. The current downward rally is the unfolding of the impulsive wave 5 towards 33.06 and could go even lower . Although the downward rally is highly anticipated, we will only go short below 43.12. Any developments above 45.32 may invalidate the anticipated downward rally and could culminate into a possible bullish price movements towards 48.24 or even higher.
 
Trade Recommendations:
 
Go short below 43.12 with an ideal target at 33.06.
Graham Osano
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