Weekly Forecast for S&P500, Brent, Gold | 23 September 2016


S&P500


Monthly: continued local downward correction, which, apparently, would reach at least the middle Bollinger band (2062.8), upon that bullish potential will be tested. But note that the oscillator has shown a well expressed bearish divergence a long ago, therefore, with high probability, the index is completely reversing downwards.



Weekly: next two ways support lines on the way of drop is the middle Bollinger band (2122.8) and the bottom band (2018.2)



Daily: resistance from the middle Bollinger band (2168.3) remains untested and is a potential area for medium-term sales, because we are dealing with a broken bottom envelope and week's divergence.



The main scenario - touch of 2168.3 and then decline towards 2062.8.


The alternative scenario- a direct decline towards 2062.8


Solutions: sales to 2062.8 (the best possible way - from 2168.3)


"Brent"


Monthly: oil retains a tendency to flat under resistance 50.00 and so far, there is no reason for this trend to be changed.



Weekly: at this local frame, the price is consolidating within narrowing Bollinger envelopes (range 43.73-52.33). We do not expect any breakthrough of the range. Thus, we can count on support 43.73 as the source of a Buy signal.



Daily: non-trending ADX indicates readiness to finalize 43.73 zone this week. One of the possible ways is a "breakthrough of the lower envelope, a return to the middle band (48.28) - the basic phase of decline to 43.73)



The main scenario - a break below 45.30, then an upward rollback to 48.28 and then beginning of decline to 43.73


The alternative scenario - a direct decline towards 43.73.


Solutions: sales to 43.73 (the best possible way - from around 48.28)


Gold


Monthly: gold is correcting down inside the upper envelope, which paves the way for bears to the middle Bollinger band (1206.90). ADX in the strong zone, but is in a neutral mood, it creates the danger of the impulse.



Weekly: if support of 1304.55 (middle Bollinger band) is broken, then bears will have the operating space for a drop to 1221.49. The oscillator has signs of divergence, so the bearish scenario is the main one.



Daily: here sellers fully dominate. Based on aggressive parameters of ADX, they are ready to collapse the price to 1206.90 right after opening of markets. The . last support before a fall - the bottom Bollinger band (1304.55)


Weekly Forecast for S&P500, Brent, Gold


Expectations: drop to 1254.46, 1221.49 with the target to 1206.90


Solutions: sales to 1254.46, 1221.49 and 1206.90


Aleksey Panasenko
FreshForex Analyst
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