“The Gold market has been in a corrective process since the December ’15 low.
It’s since seen the A and B legs of an incomplete ABC. Again, it’s common for B waves to be more contracted/complex. As such, the market needs to break meaningfully past 1,303 (early-September low) to suggest potential to have started its final C wave advance.
The next downside level to watch is 38.2% retrace at 1,250. A break lower will open up risks to 50% retrace at ~1,211-1,200. Need above 1,303 to consider the start of a recovery.
The Oil market has been in a corrective process since the January low.
It’s since seen the A and B legs of an incomplete ABC. As is often discussed, it’s common for B waves to be more contracted/complex. As such, the market needs to break meaningfully past 52.30 to suggest potential to have started its final C wave advance.
This 52.30 level is derived from an ABC off the July low. The implied target for wave C (from current levels) is somewhere near 60/64.
Until this break above 52.30 is attained it seems sensible to treat this as a range trade; i.e. highs in the ~50/52 region and lows down at 43/42″.
Copyright © 2016 Goldman Sachs, eFXnews™
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