Bearish Momentum Developing in Gold
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.
Wait for minor upward pullbacks towards $1251.71 to go short with an ideal target at $1178
Silver weekly Review
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.
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
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.
Go short below 43.12 with an ideal target at 33.06.