Elliott Wave Analysis: Crude Oil And Gold
Crude Oil bounced sharply at the end of October but only with three waves that made a reversal down last week from around trend line resistance and 61.8% Fibonacci level. That was ideal zone for a bearish continuation that seems to be in full progress now after a break beneath 45.90 bearish level. As such, wave (ii) appears completed which means that 42.64 low should be retested; ideally it will be broken out that will make room for a move down to $39.
Crude Oil, 4H
Gold keeps trading lower with very aggressive and sharp decline since price broke through the lower side of a trading channel near 1158. This typically occurs in wave three of an impulsive price action so it looks like that metals are headed back to the lows of 2015. In fact, leg from 1183 is extended so it should be made by five subwaves with wave 3 that appears in full progress after another strong decline on Friday. As such, expect more weakness after any corrective bounce. Ideally wave (iv) retracement is now underway back to around 1100 from where weakness may resume this week.
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