| The Weekly Outlook For Gold & WTI Crude Oil
$GLD, $USO On Gold Favoring that Gold completed an impulsive wave at 1287.8 and pull back is due. A clear break of support at 1225.1 will confirm short term topping and bring pull back to 55-Day EMA at 1173.9. But a clear break of 1287.8 top will dampen that view, and extend the rise from 1045.4 towards the Key resistance at 1307.8. The big picture Gold’s rebound from the medium term bottom at 1045.4 is still in progress and will likely extend North. But, still not treating it as a trend reversal yet. As the price action from 1045.4 is seen as developing into a sideways consolidative pattern. So, expect to see strong resistance from the 38.2% Fibo retracement mark at 1923.7 to 1045.4 at 1380.9 to limit the Northside and bring a near term reversal. The long term picture The current development indicates that Gold will consolidate above the medium term bottom at 1045.4 in here. The fall from 1923.7 is seen as a long term correction. If that is true, then see another decline into 681/1033.9 support zone, with 61.8% Fibo retracement of 253.2 to 1923.7 at 891.3 inside. But, a clear break of 1380.9 Fibo mark will suggest that price action from 1923.7 are developing into a sideways pattern. COMEX Gold Continuous Contract Daily
COMEX Gold Continuous Contract Weekly
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On WTI Crude Oil
WTI Crude Oil’s rally extended last week and reached 41.20 but lost steam.
Expecting strong resistance at the 40.00/41.42 zone (61.8% Fibo retracement of 50.92 to 26.05 at 41.42, 38.2% retracement of 62.58 to 26.05 at 40.00) to limit the Northside.
A clear break of 35.96 suggests that rebound from 26.05 is finished and will turn bias back to the Southside for retesting the low at 26.05.
But, a clear break of 40.00/41.42 paves to way to 61.8% Fibo retracement of 62.58 to 26.05 at 48.63 and above.
The big picture
The current development argues that a medium term bottom is possibly in place at 26.05 on Bullish convergence condition in weekly MACD.
This is in-line with the view that 17.12/37.0 is a Key long term support zone.
The current rise might target the 55-Week EMA at 46.14. But, expect strong resistance from 38.2% Fibo retracement of 107.73 to 26.05 at 57.25 to limit the Northside. WTI Crude Oil should then turn into a sideways pattern.
The long term picture
WTI Crude Oil should have drawn support from 17.12/37.0 support zone to form a medium term bottom at 26.05. So, now expect a medium term long term sideways pattern to develop.
NYMEX Crude Oil Continuous Contract Daily
NYMEX Crude Oil Continuous Contract Weeky
Technical analysis is a method of forecasting price movements by looking at purely market-generated data. Price data from a particular market is most commonly the type of information analyzed by a technical trader.
Have a terrific week.
HeffX-LTN
Paul Ebeling
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