Gold Weekly Review:
As previously forecasted, The Yellow metal traded massively short and is still showing signs of bears dominance. Although we expect further bearish price movements, we’re waiting for a clear breakout below the immediate diagonal supportive trend line to give us the greenlight to continue short. This trend line acted as a key supply level during the week ending 25th January 2015 and will likely act a key demand level as long as price remains above it. Any clear breakout below it will culminate into a possible bearish wave count towards the lower trend line and possibly lower. Any clear rebound from this trend line will mean we’re headed to the upper side. This downward rally is highly anticipated since Silver, a positively correlated commodity, is pretty much bearish and will likely head to the lower side during this trading. Only buy or sell gold if silver is giving the same signal.
If you’re not short already, wait for a clear breakout below the lower trend line to go short with the first target at 1056.50.
Silver Weekly Review:
During the previous week ending 9th December 2016, the corrective wave (b) retraced to the upper side but barely hit our target reversal level 17.25 before heading to the lower side. We expect the level 17.25 to have marked the end of the anticipated correction and that the current downward rally is the unfolding of the impulsive wave (c) to the lower side with the first target 15.92. This view can only be invalidated incase the pair end up breaking above 17.37, if the latter is the case, then an acceleration towards 18.56 is inevitable. In the meantime, we hold onto a bearish bias sentiment in this commodity, we’re not interested in any buy orders as long as the price remain below 17.25. Expect a similar wave count in Gold, these two commodities will have a similar price action during this week.
Expect a possible bearish wave count towards 14.63.
Crude Oil Weekly Review:
During the previous trading week, the crude oil Retraced to the upper side but could not go beyond the daily resistance level 51.68. As long as this level limits invasion to the upper side, we expect a reversal from this level to culminate into a bearish wave count towards 48.58 or even lower. Any breach of the level 52.41 will mean we’re headed long with the first ideal target 60.34. The latter is however highly unlikely since, on 19th October 2016, the level 51.68 acted as a key supply level and now that the price is still below it, we expect it be a good sell point. A key resistance can be seen at 60.34 while a key support level can be seen at 43.55.
Wait for a clear breakout above 52.41 to go long with an ideal target at 60.34. Any clear rebound from 51.68 will mean we’e headed short with the first target at 48.58.