Gold Weekly Review
Last week, Gold markets rose upwards and even broke above the weekly resistance level 1269. We expect this upward thrush to be the continuation of the impulsive wave (c) to the upper side but should not break above the monthly resistance level 1396. If this resistance is broken, then the price may push further upwards but should not go beyond 1602.47. The level 1212.86 is a key weekly support level and if price can pull back to this level, then this will be the best place to long this commodity. This commodity should be traded alongside Silver, these two commodities have a strong positive correlation of up +71% and will move in the same direction during this trading week.
Buy Gold with an ideal target at 1396.94
Brent Weekly Review
Brent oil continues to rally above the upper trend line despite our expectations that it could rise to the upper side. And despite the bearish engulfing candle seen on Thursday last week, the Friday’s candle could hardly close below this trend line, instead the price hit the lows of 51.12 and ended up closing at 51.99 just a few pips above it’s opening price. The last trading day’s candle is a perfect bullish pin bar closing above a key trend line. We expect this pin bar to push the price further upwards towards 55.00, if this level is broken, we will continue upwards.
Buy Brent oil now with an ideal target at 55.00
SP500 Weekly Review:
During the previous weekly, the weekly candle opened at 2470 went as high as 2489.2 and as low as 2420.2 but ended up closing at 2442.5, several pips below it’s opening price. The last week’s candle pretty much engulfed the Thursday’s candle and could signal a possible encroachment of bears into this market. We expect this bearish candle to be an onset to a bearish correction, correcting the previous five wave cycle but should not go beyond 2387.0. Thus, during this week, we expect a possible bearish wave count with an ultimate target at 2336.00.
Short this index with the first target at 2387.00 and the next target at 2336.0.