OIL flexing the muscles

Hi Traders,

WTI OIL (now at 48.65) is sitting on an important support/resistance. After a small drop to $48, it should move to a much higher ground. It could hit $61 soon and maybe $66-$68. Gann analysis suggests a final target of $75.

ELLIOTT WAVES

The weekly chart shows OIL is staging 3 major waves up. Wave 2 is complete and wave 3 just started.

The daily and 4-hour charts reveal that we just started minor wave 5, maybe to 51.65. The 1-hour chart shows the completion of wave 4 and the start of wave 5.




Weekly chart. Click to enlarge

Daily chart. Click to enlarge

4-hour chart. Click to enlarge

1-hour chart. Click to enlarge

GOLD to top and reverse ?

Hi Traders,

GOLD (now at 1284.35) topped and reversed. At the moment, it's not clear whether this is a just a retracement to 1251-53 or it's the start of a real downtrend. Many traders remain cautious.

Gold weakness might be due to the recent Chinese ban on overseas investments. If this is the case, Chinese money simply dried up. 

However, as all major stock indices head South, money could be either re-directed to commodities (included Oil, Gold, and crypto-currencies) or simply to the USD and the CHF. If the market picks the first group Gold will rise. Conversely, Gold dives. 



ELLIOTT WAVES

The weekly chart shows that Gold topped around 1300 by completing wave 2. The daily chart shows a nice shooting star which usually is a reliable reversal pattern.

Finally, both the 4-hour and the 1-hour charts display a remarkable reversal candlestick (top right).




Monthly chart. Click to enlarge

Weekly chart. Click to enlarge

Daily chart. Click to enlarge

4-hour chart. Click to enlarge

1-hour chart. Click to enlarge

15-min chart. Click to enlarge