S&P500, Brent and Gold in the weekly review | 14 Outubro 2016


S&P500


Monthly: September's pinbar has no support under it, so we can't fully consider it as a trading setups. We expect a continued correction in the direction of the middle Bollinger band (2062.8).



Weekly: a similar situation: the pair is getting corrected down against weak declining ADX. The intermediate support is at the middle Bollinger band (2130.1). Resistance is at 2225.4 (upper Bollinger band).



Daily chart: flat corridor within Bollinger envelopes (2130.1 - 2182.9). ADX is rising in favor of bears, but it is far from the trend area, so this week we do not expect the price outside the corridor.



Expectations: So, wait for the top-down flat within a horizontal range of 2130.1 - 2182.9.


solutions: sell to 2130.1


"Brent"


Monthly: Bulls began this month from active attempts to break September's bullish inside bar. If ADX does not have a weak status, the oil would be ready to leap to the north to around 68.06 (the upper Bollinger band). If ADX remains to be as weak, we expect trading along the middle Bollinger band (50.05) to continue.



Weekly: at this frame ADX is also weak, so the oil is not expected to get above resistance 52.64 (upper Bollinger band).



Daily chart: Support lines are at 50.05 and 48.50 (middle Bollinger band), resistance is at 52.94 (upper Bollinger band), but here ADX is very aggressive.



Expectations: touch of 52.64 followed by a downward rollback to 50.05 and probably to 48.50.


solutions: sell from 52.64 to 50.05 and 48.50.


Gold


Monthly: the price is going to touch the middle Bollinger band (1206.90), and it is possible that bears will take the gold to the lower envelope.



Weekly: dense support area is around 1206.90 - 1230.67. ADX is looking up to sellers, but it is very far from the trendline area. Resistance is at 1312.18 (middle Bollinger band). There is some danger that the pattern "Head-and-shoulders" will be formed, which also will talk about the bearish medium-term potential.



Daily chart: the price is haevily oversold here and four bars outside of Bollinger envelope anticipate the upward correction toward the middle Bollinger band (1312.18)



The main scenario - a direct upward correction to 1312.18


The alternative scenario - touch of support 1230.67 and then correction to 1312.18.


solutions: looking for purchase options to 1312.18 (the best possible way - from around 1230.67, under the bearish scenario.)


Aleksey Panasenko
Analyst of «FreshForex» company
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