Weekly Review. S&P500, Brent, gold | 24 February 2017

S&P500

Monthly chart: ADX is growing and is close to trend. As before, we don't now where American companies' capitalization high but it is obvious that Trump encourages the market. From the technical point of view, we may fully rule selling out from trading strategies.

Weekly chart: here we have similar situation (except fully trending ADX). We are observing overbought market, that can cause delay in upper Bollinger band region (2360.0) but one may use any possible rollbacks for upward entering.

Daily chart: here we have active ADX, overbought oscillator along with bullish market closing. There is support level at 2302.7 (middle Bollinger band), the price may drop from 2360.0 to this region, where one may look for new mid-term upward signals.

Expectations:

Core scenario - upward breakout of 2360.0 and further rise during the whole weak

Alternative scenario - downward rollback from 2360.0 (towards 2302.7)

Solutions:

Brent

Monthly chart: the price is rotating inside upper Bollinger envelope (49.21-64.71), we may treat it as preparation for further upward correction to 64.71. However, ADX is not active enough, so we are likely to see continuing rotation in middle band region on three charts (49.21-55.89)

Weekly chart: previous week closed with bearish inside bar. However, we may consider downward scenarios only after price drops below middle Bollinger band (53.25, see purple arrow). Now considering active ADX we will stick to upward expectations (rise from 53.25 to 60.43, see red arrow)

Daily chart: locally we have all the prerequisites for flat within Bollinger bands range (54.75-56.90) - ADX is falling.

Expectations:

Core scenario - flat in 54.75-56.90

Alternative scenario - decline to 53.25.

Solutions:

1. Trading inside corridor 54.75-56.90

2. Consider buying from 53.25 (in case of long signals.)

Gold

Monthly chart: ADX is corrective, that's why we may expect chart fluctuations tendency in middle Bollinger band region (1215.13)

Weekly chart: here price shift to upper Bollinger band region (1327.32) is possible, followed by drop to 1215.13 (middle Bollinger band)

Daily chart: locally ADX is trending, so we may expect sharp rise from 1220.53 (middle Bollinger band) towards 1250.29 (upper Bollinger band) with general target at 1327.32.

Expectations: touch of 1220.53 followed by rise to 1250.29 (with mid-term target at 1327.32)

Solutions: consider buying from 1220.53 to 1250.29 and 1327.32.