Bullish inside bar in Gold
Bullish inside bar
Instead of rallying to the lower side, the yellow metal retraced to the upper side and even broke above 1169.21. Following the bullish inside bar witnessed during the previous trading day on 6th January, we expect an acceleration to the upper side as long as the commodity remains above 1169.21. The anticipated upward rally is the continuation of the impulsive wave (5) and should not go beyond 1214.38 during this trading week. The view can only be overruled in case the yellow metal end up below 1169.21, if this in is the case, then an acceleration to the lower side is Ineluctable. Expect a similar wave count in Silver, USDJPY and an exact opposite price action GBPUSD and EURUSD. The last two pairs have a strong negative correlation with the first items.
Expect a possible bullish price movements towards 1214.38
Silver fails sustain the break below 16.04
Just as in Gold, instead of going short, silver markets retraced to the upper side, broke above 16.04 and is currently showing signs of possible momentum to the upper side. As long as the commodity trades above 16.10, we expect possible bullish price movements. The anticipated rally should be the continuation of the impulsive wave (c) towards 17.02 but should not go above 18.56. This view can only be invalidate in case the commodity end up below 16.04, if this is the case, then we expect further bearish wave count towards 14 or even lower. Trade this commodity alongside USDJPY and Gold, these items have a strong positive correlation of up to +0.71% and will have a similar price action during this week.
Remain long with the first target at 17.02 and the next target at 18.56.
Crude oil weekly review
During mid previous week, the crude oil traded massively short but could not go below 52.41, we expect the upward rally witnessed during the end of the previous week to have been a mere corrective wave count and should not go beyond 55.30. In the meantime, instead of going long, we choose remain flat and wait for a clear rebound around 54.11 to sell the impulsive wave (c) towards 43.55. Alternatively, conservative traders should wait for a clear break below 52.41 then go short. Buy positions can only be reconsidered above 55.30 with an ideal target at 60.34. A break above this level will push the price further to the upper side with the next target at 76.55
Expect a possible rebound around 54 then go short with an ideal target at 43.55.