Weekly Review. S&P500, Brent, Gold | 27 May 2016


S&P500


Monthly: the downward reversal is reluctant. At the same time, the bullish component is still not enough. So we are based on the main expectations – nearing of the full reversal with the initial targets at the lower Bollinger band (1921.4). It is possible that this scenario will be delayed until June



Weekly: expansion of the upper envelope is can be interpreted in two ways, but as long as 2111.7 resistance area remains stable, we must be based only on southern expectations. We expect the index at the middle band (2000.0)



Daily: local resistance zone - 2064.0 (the middle Bollinger band). It makes sense to consider sales from it.



Expectations: touch of 2064.0 and then drop to 2000.0


Solutions: sale from 2064.0 to 2000.0


"Brent"


Monthly: The active scenario is finalization of the middle Bollinger band (57.87), there are no signs of withdrawal of such a correction. It is early to tell about the upward reversal of the oil, because ADX/RSI lies purely in the correctional format



Weekly: an active bullish trend frame, we expect finalization of 57.87.



Daily: locally there are signs of divergence and overboughtness of the oscillator. This allows to expect correction during the whole week down from 50.30 to 46.74 (middle Bollinger band)..



Expectations:


The main scenario - a downward correction from 50.30 to 46.74


The alternative scenario - a break above 50.30 with the threat of finalization of 57.87.


solutions: Bears: sales from 50.30 to 46.74. Bulls: purchase from 46.74 or search for signals of a breakthrough to 57.87.


Gold


Monthly: So far, scenario with drop from the upper Bollinger band (1318.31) to 1179.69 and 1057.97 (middle and lower Bollinger band, respectively) is being justified.



Weekly: a local dense support zone 1179.69-1203.65. There is potential for the upward rebound to 1344.69 (upper Bollinger band)



Daily: divergence of the oscillator allows us to count on a continued downward correction to 1230.93 (bottom Bollinger band). We do not see potential for a break below this week



Expectations:drop to 1230.93 followed by the upward rebound to 1265.86


solutions: Sales to 1230.93


Aleksey Panasenko
FreshForex Analyst
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