Weekly analysis- Elliott waves for Forex correlation analysis – Gold still to rise
During the previous trading week, Gold markets rose to the upper side, hit the highs of 1258.5 but ended up closing just a few pips above it’s weekly opening price. About three weeks ago, the corrective wave (b) traded short but could not go beyond 1204.70, we expect the upward rally that began a fortnight a go to be the unfolding of the impulsive wave (c) and should not go beyond 1396.94. A break above this level will push the price further to the upper side but should not go beyond 1500. 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.
Expect a possible bullish price movements towards 1396.94
SPX500 Weekly Review
During the past trading week ending 31st March 2017, SPX500 traded on the higher ranges despite our expectation to rebound from our retracement level 2365.75. This commodity merely tested this level and is currently rallying slightly below it. As long as this level protects any invasion to the upper side,we’re waiting for a clear rebound from this level to go short with an ideal target at 2279.67, a clear break above this level will push the price to the upper side but should not go beyond 2500. This upward rally is supported by the fact that for almost a decade, SPX500 has been in an overall up trend and may continue long in the long run.
Wait for a clear rebound around 2367.75 to go short with an ideal target at 2279.67. A break above 2367.75 to go long with an ideal target at 2500.
Oil Weekly Review
Despite our expectations to continue short, the oil retraced a bit higher and even broke above our retracement level 52.024. As long as this commodity remains above this level, we expect a possible bullish momentum towards 57.001 or even higher. Thus, if you’re not long already, wait for a clear break above 57.01 to go long or a clear rebound from this level will push the price to the lower side. Sell positions may also been considered below 52.024. Crude oil should be traded alongside Canadian pairs. The value of most Canadian pairs are always determined by the price of oil.
Expect a possible bullish momentum towards 57.001