Gold to trade short in the long run
Gold Weekly review
As anticipated, during the previous trading week ending 25th November 2016, Gold markets traded massively short and is still pretty much bearish on both the weekly and monthly charts. If the current monthly chart can close the way it is right now, then we expect further bearish price rally during the coming month. and may go beyond 1058.50.
In the meantime, buy positions are very much risky and may be fruitless in the long run, thus, we're only interested in chart set up showing us potential sell signals. Expect similar chart set up in Silver, these two commodities will have a similar price action during this intraday.
Expect a possible bearish price action towards 1056.50 or even lower.
Silver Weekly review
During the previous week ending 25th November 2016, Silver market opened at 16.54, went as high as 16.85 and as low as 16.13 but ended up closing at 16.48, just a few pips below it's opening price. The previous week's candle is an indecision candle; which means chances of going to either sides are pretty much equal. We expect the current upward rally to be a mere retracement and should not go beyond 17.37 from where we'll be looking for low risk sell opportunities. Although we expect further bearish wave count towards 13.80 in the long run, we'll only trigger sell orders below the previous week's lowest low. This downward rally is highly likely since Gold, a positively correlated commodity is very bearish and will head to the lower side during this week.
Wait for minor retracements towards 17.26 to go short with an ideal target at 13.80..
Oil Weekly review
During the previous week, the crude oil gapped into our objective resistance level 48.48, tested it, but is currently retreating to the lower side. The last trading day's candle is a strong bearish signal and could indicate a possible increase in the number of sells in the market. As long as the level 48.48 limits any upward aggression, we expect a possible bearish wave count towards 43.12 and possibly lower. At the moment buy positions may not be meaningful and could be disastrous in the long run. We may only be interested in buying above the previous week's highest high with an ultimate target at 51.35. Any breakout above this level may push the price further to the upper side.
Expect a possible bearish price movements towards 43.12