Gold weekly review
For the past two months, gold markets has been in an uptrend and is still showing signs of rising even further. We expect this upward rally to be the continuation of the impulsive wave (c) to the upper side but should not go beyond the monthly resistance 1.394.94, if the price ever breaks above this resistance, then we expect further rise towards 1602.47, A rebound from 1394.94 will mark the end of this impulsive wave (c) and could mean we’re heading short towards 1212.66. This commodity will have a similar price action to silver. These two commodities have a strong positive correlation and will move in the same direction during this trading week. Gold drags silver along with it.
Remain long towards 1396.94
Oil Weekly Review:
During the earlier days of last week, crude oil dropped but got shielded around 50.294-49.944. We expect this zone to have marked the end of the corrective wave (4), that the current bullish wave count is the continuation of the impulsive wave (5) with an ideal target 54.00. In the meantime, we’re waiting for break above the resistance level 52.805 to long this commodity with our target still intact around 54.00. At the moment, as long as the price remains below 54.00, we choose to remain to flat and wait for this break above. This commodity should be traded alongside WTI.
Wait for a break above 52.805 to long oil towards 54.00.
SPX500 weekly review
Since January this year, Standard’s Poor 500 index entered into a rising channel, and expect in May, this index has remained within this channel and only broke out below it Thursday last week. This is a possible bearish signal, and the Friday’s candle is a perfect bearishindecision candle below a key trend line. As long as the price remains below this trend line, we expect a possible extension of the impulsive wave (c) to the lower side but should not go beyond 2350. If this level is broken, then we expect further extension to the lower side. If the price gets back above the lower trend line, then we’ll be looking for long positions towards 2500.
Look for short positions towards 2350.