Gold, Silver Oil weekly review
Gold weekly Review:
For the past few weeks, gold markets entered into a bearish consolidation only trading within the descending channel. As long as the yellow metal trades within this channel, we expect further momentum to the lower side. in the meantime, we're waiting for the corrective wave (4) to retrace towards the upper trend line forming top of the falling channel to sell the next impulsive wave (5) towards 1069 or even lower. This downward rally is highly anticipated since, Silver, a positively correlated commodity, is pretty much bearish and will trade with a bearish bias during this intraday. Only buy or sell gold if silver is giving the same signal.:
Remain short with the first target at 1069.
Silver weekly Review:
During the previous trading week ending 16th December 2016, the commodity retraced to the upper side but could not go beyond the resistance level 17.37. We expect the resistance level 17.37 to have marked the end of the corrective wave (b) and that the current downward rally is the unfolding of the impulsive wave (c) to the lower side. As long as the level 17.37 limits any invasion to the upper side, an acceleration towards 13.79 is highly likely. This downward rally is highly anticipated since Gold, a positively correlated commodity, is showing signs of similar bearish momentum and will head to the lower side. Ideally, gold drags silver alongside it. Only buy or sell silver if gold is giving the same signal.
Remain short with the first target at 13.79.
Oil weekly Review:
Earlier the previous week ending 16th December 2016, the crude oil gaped to the upper side but ended up forming an exhaustion candle around 52.77. The commodity then traded massively short but is currently pulling back towards 52.77. We expect the current upward rally to be the continuation of the corrective wave (b) and should not go beyond 52.77 from where we'll be looking to sell the next impulsive wave (c) towards 44.96. In the meantime, instead of going long, we choose to sit on the sidelines and wait for a clear rebound from 52.77 to sell wave (c) at low risk. The anticipate sell position sho0uld have the first target at 48.02 and the target at 44.96.
Go short upon a clear rebound from 52.77 with an ideal target at 44.96.