Weekly Review. S&P500, oil, gold | 16 Dezembro 2016

Monthly chart: index is in its historical high right now and it is not clear how high it will go. However, ADX does not treat current moves as a trend yet, so soon a reversal or correction will be possible.


Weekly Review. S&P500, oil, gold


Weekly chart: breakout of upper Bollinger band is a distinct bullish signal. Now a rollback to middle band (2167.5) would be technically justified.


Weekly Review. S&P500, oil, gold


Daily chart: the pair is overbought and 3 bars beyond Bollinger envelopes - it shows readiness for correction. We are waiting for a shift to new extremes and later starting downward rollback towards 2200.8 (middle Bollinger band)


Weekly Review. S&P500, oil, gold


Expectations: wait for a shift to new extremes and later downward rollback towards 2200.8


Solutions:


1. Buy with Take Profit at any counter-signal


2. Sell around 2200.8 after short signals are shaped.


Brent


Monthly chart: bulls have momentum advantage, but ADX is not growing yet. Uptrend is likely to reach 65.96 (upper Bollinger band). However, continuing flat around middle band (49.63) is more relevant now


Weekly Review. S&P500, oil, gold


Weekly chart: localized resistance level 54.61 (upper Bollinger band) may send price to middle band (49.63, see blue arrow). If bulls succeed in breaking the level 54.61, potential for reaching 65.96 will be developed.


Weekly Review. S&P500, oil, gold


Daily chart: there might be trading around upper Bollinger band (56.35). However, in more localized frames we can see bearish Over&Under pattern from 54.61, so any rounding of Bollinger envelopes would be a confirmation signal for going down.


Weekly Review. S&P500, oil, gold


Expectations:


Core scenario - rise towards 56.35 and later downward rollback towards 49.63


Alternative scenario - drop towards 54.61


Solutions: look for signals for downward move around 54.61 and 56.35.


Gold


Monthly chart: bears keep breaking out of lower Bollinger envelope, so there might be a drop towards 1035.43 (lower Bollinger band)


Weekly Review. S&P500, oil, gold


Weekly chart: two intermediate support levels are 1142.27 and 1082.57. The fifth bar in a row is closed beyond Bollinger Bands, which is a very strong signal for a reversal. So on any of these levels signals to buy are possible.


Weekly Review. S&P500, oil, gold


Daily chart: there remains a downward move potential. Support level is possible in 1146.37


Weekly Review. S&P500, oil, gold


Expectations:


Core scenario - drop towards 1142.27 or even towards 1082.57 and later an upward reversal.


Alternative scenario - flat in 1147.37.


Solutions: sell around 1142.27 and later look for possible signals for upward move.

Aleksey Panasenko
Analyst of «FreshForex» company
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