Gold, Silver, Brent Weekly Review
Gold weekly Review:
Instead of going short as previously forecasted, the yellow metal retraced to the upperside but is yet to hit our turn around level at 1613.99. We expect the upward rally witnessed during the previous week to be a mere correction of the impulsive wave (5) and should not go beyond 1613.99 from where we'll be looking to continue short with the impulsive wave (5). Any clear invasion above 1625.28 may render futile the anticipated downward rally and could push thr price to the upperside towards 1686. Expect an exact similar price action in Silver, these commodities have a strong positive correlation of up to +85% and will have a similar price action during this intraday.
Wait for the current retracements to end around 1613.99 then go short with an ideal target at 1497. Buy positions may only be recommeded above 1625.28 with an ideal target at 1686.
Silver weekly Review:
During the previous week ending Feb 3rd 2017, Silver markets retraced higher than expected and even closed above our rebound target at 17.44. Following this breakout we expect further impulsive accelaration to the upperside but should not go beyond 18.27. In the meantime, we're waiting for minor retracements towards 17.08 to give us low risk buy opportunities. Any clear retracements below 16.92 may invalidate the anticipated upward rally and could push the price further to the lowerside which means an extensive impulsive wave (5) but should not go beyond 15. Expect a similar wave count in Gold, these two commodities have a strong positive correlation of up to +89% and will have a similar price action during this trading week.
Wait for minor bearish retracements towards 17.44 to go long with an ideal target at 18.27. Sell positions are only recommeded below 16.92 with an ideal target at 15.
Brent in a possible wedge formation
During the previous trading week ending Feb 3rd 2017, Brent market retraced to the uppesride but is yet to reach the resistance level 57.33, forming top of the rising wedge. We expect a possible rebound from this resistance level to go short with an ideal target at 54.01. The anticipated downward rally is the continuation of the impulsive wave (c) to the lowerside but should not go beyond 50.30. This view can only be rendered futile in case the price rise clearly above 57.33, if this is the case, then we'll wait for a clear break above 58.47 to confirm the continuation of the of the upward rally. This should got only up to 65.01, a break above this zone will push the price further to the upperside towards 75.01.
Expect a possible rebound from 57.33 to go short with an ideal target at 54.01. Alternatively, conservative traders should wait for a clear breakout below the lower trendline to go short with an ultimate target at 50.30