Gold is currently trading within a converging wedge formation. Last week, Gold markets barely consolidated and nothing significant was seen. According to the monthly chart, we expect sellers to dominate, and should break below the supportive trend line, if this is the case, then we’ll wait for a retracement to the just broken level to pick a long term short position towards 1154.90. The idea is to look for short positions even now but with the first take profit along the supportive trendline.
Look for a sell position.
SPX500 Weekly Review
Last month, SPX500 got contained above the weekly support level 2593.70. This is a monthly support level and as long as the price remains above it, we expect nothing but a possible momentum to the upperside. As long as the price remains above 2593.70 and also above the two simple Moving Averages, we expect nothing but a possible momentum to the upper side. The anticipated bullish price rally is the continuation of both impulsive waves (v) and (5), and should break above 2898.55.
We’re long from 2593.70.
Brent Weekly Review
Since October this year, Brent Oil has been on the loosing end. Compared to the US Dollar, Brent plunged lower and is still pretty much bearish both on the daily and the weekly charts. We’ re waiting for a clear sign that the the corrective wave (4) has ended so that we sell the last impulsive wave (5) towards 45.530, If you’re not in any position right now, you may still look for sell positions now but have your target at 45.530.