Perfectly as previously forecasted on the weekly forecasts, gold markets dropped in price even further but is yet to hit our monthly support level 1191.12. During this week, we expect a possible extension of the corrective wave (b) but should not go beyond 1191.12 from where we'll be looking to buy the impulsive wave (c) at the least risk with our target fixed at the monthly resistance level 1396.94. A break above this resistance level will push the price further to the upper side but should not go beyond 1602.47. This view can only be rendered futile in case the price breaks below 1191.12, if this should be the case, then a possible bearish price rally towards 1061.93 is inevitable. Expect a similar wave count in Silver, these two commodities have a strong positive correlation of up to +78% and will have a similar wave count during this intarday.
Expect a possible bearish price rally towards 1191.12
Crude Oil weekly review
During the previous week ending 7th July 2017, the corrective wave (iv) extended a higher than expected and even broke above the resistance level 48.83 but could not go beyond the daily resistance level 49.95. We expect this level to have marked the end of this correction, that the current downward rally is the continuation of the impulsive wave (v) to the lower side but should not go beyond the daily support level 38.18. This view can only be invalidated in case price end up above 48.83, and most importantly if the price can get above 49.95, if this should be the case, then an acceleration to the upper side is inevitable. Trade this commodity alongside Canadian pairs, these tend to have a similar price action
Expect a possible bearish price rally towards 38.18.
S&P500 weekly review
Despite our expectations that this index could rise during the previous trading week ending 7th July 2017, SP500 continues to correct itself downwards and is rallying within a possible corrective wedge formation: During this week, we expect this corrective wave cycle to continue within this falling wedge with the last impulsive wave (c) ending around 2396.2. This view holds true along as the price remains below 2435.2, a break above this level will invalidate the anticipated bearish price rally and could push the price to the upper side but should not go beyond 2500. But at the moment, the current chart set is bearish and holding onto or buying this, especially on the lesser time frames may not be the best choice. Trade this index alongside other indexes.
Expect a possible bearish price rally towards 2396.2