Gold Still retracing | 12 May 2017

Gold Weekly Review

Wave Analysis:

During the previous trading week ending 5th May 2017, we witnessed further bearish correction of the impulsive wave (c) but is yet to hit our turn around zone 1204.70-1191.12. During this trading week, we still expect further rally to the lower side but should not close below 1191.12. Ideally, we expect a third retest of the retracement zone 1204.70-1191.12 from where we’ll be looking to buy the impulsive wave (c) towards 1396.94. This commodity should be traded alongside Silver, these two commodities have a strong positive correlation of up to +89% and will move in the same direction during this intraday.

Trade Recommendations:

Expect to Buy gold within 1204.70-1191.12 towards 1396.94.

S&P500 weekly review:

Wave Analysis:

During the previous trading week, S&P 500 gaped to the upper side and even broke above a key resistance zone 2385.52-2382.34, as long as the price remains above this zone, we expect possible bullish price movements towards 2500.0 or even higher. In the meantime, we’re waiting for retracements to the just broken zone to rebuy S&P 500 to the upper side. This view can only be rendered futile in case the price end up below 2382.34, if this is the case, then an acceleration to the lower side is inevitable. This index seems to have a close positive correlation to the USDJPY, thus it’s wise to check this two closely.

Trade Recommendations:

Expect possible bullish price movements towards 2500.0 or even higher.

Crude Oil Weekly Review

Wave Analysis:

Perfectly as previously forecasted, Crude oil traded massively short following the failed retracement above 52.599 on 28th April 2017. This commodity should move further to the lower side but only after the completion of the current upward pullback. We expect the upward rally that began on Friday the previous trading week to extend further to the upper side but should not go beyond 52.59, from where we have our sellers. A clear breakout above this zone will push the price further to the upper side towards 56.87.

Trade Recommendations:

Remain flat momentarily and only short crude oil upon a clear rebound around 51.930-52.599.