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Bearish Engulfing Candle in Gold

Bearish Engulfing Candle in Gold | 09 December 2016

Gold Weekly review:
Bearish Engulfing Candle in Gold
 
Weekly review:
 
During the previous trading month, Gold's monthly candle opened at 1276.81, went as high as 1337.19 but ended up closing at 1173.12. The previous months candle is a perfect bearish engulfing candle and will likely push the price further to the lowerside. In the meantime, we're waiting for minor upward retracements towards 1232.08 to give us low risk sell opportunities. Expect a similar wave count in Silver, these two commodities will have a similar price action during this month, as long as Gold is bearish remain short in silver. These two commodities have a strong positive correlation of up to +89% and will have a parallel price action during this trading week

Trade Recommendations:

Expect a possible bearish price movements towards the lower trendline.

Silver weekly review:

Bearish Engulfing Candle in Gold

Weekly review:

Following the massive drop below the daily demand level 17.25, on 14th November 2016, the metal traded short but is currently retracing back to this level. We expect the current upward rally to be a mere correction of the impulsive wave (a) and should not go beyond 17.25, from where we'll be looking to sell the next motive wave (c). Any clear advancements above 17.37 may invalidate a possible rebound from this zone and could culminate into a possible bullish wave count towards 18.54 and possibly higher. In the meantime, this bullish rally is highly unlikely since gold, a positively correlated commodity is pretty much bearish and will likely trade in the lower ranges during this week. And since gold basically drags silver with it, any bearish movements in gold will attract a similar move in silver. Only buy or sell silver if gold is giving the same signal.

Trade Recommendations:

Wait for a clear rebound from 17.25 to go short with an ideal target at 15.75

Crude Oil weekly review:

Bearish Engulfing Candle in Gold

Weekly Review:
 
During the previous trading week, instead of going short as forecasted, the crude oil retraced to the upper side into our objective weekly resistance level 51.96 and is currently stalling there. As long as the price remains below this level, we expect a possible rebound from this level to go short, otherwise, there could be consolidations around this level before breaking above it. In the meantime, we choose to sit on the sidelines and wait for a clear breakout above 51.96 to go long towards 61.45. This upward rally is highly likely since the previous week's candle pretty much engulfed the previous week's candle, week ending 25th Nov 2016, and will likely push the price above 51.95.  Any clear rebound from this level may invalidate the anticipated upward rally and could culminate into a possible bearish price movements towards 42.89.

Trade Recommendations:
 
Remain flat for now but wait for a clear breakout above 51.96 to go long with an ideal target at 61.45.
Bob Stan
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