Weekend Elliott Wave Review: Gold, Crude oil and S&P 500
Gold (COMEX:GCK14) turned bearish last week from $1,380-$1,400 Fibonacci resistance zone and extended losses in this week beneath $1,300 psychological level where market could look for some support if we consider five sub-waves down from 1391. We are talking above red wave i)/a) that could be near completion, so traders should be aware of three wave rally back to $1,327-$1,342 region. The RSI is also showing some signs of a divergence. Keep an eye on upper trendline of a current downward channel; a break above it will suggest that three wave rally has began.
Gold, 4h Elliott Wave Analysis
Crude oil (NYMEX:CLK14) is at new high of the week after strong rally yesterday to above 101 level. Ideally price is now in the middle of wave (iii) heading up to 104.20 projected level; 161.8% extension of wave (i) from wave (ii) low. Short-term critical support is now at 98.80; as long this level holds trend is up.