Gold Ended Correction

Daud Bhatti

We revise our Gold Short Term Elliott Wave view to a more aggressive one and call the decline to 2.8.2018 at $1306.8 ending Intermediate wave (X). For this view to get validity however, the yellow metal needs to break above Intermediate wave (W) at $1366.06. Until then, the alternate view can’t be ruled out that the yellow metal can do a double correction in Intermediate wave (X) towards $1228.27 – $1302.28 before the rally resumes. more…

SP500 Adam And Adam Double Bottom Pattern In Progress

Nenad Kerkez

The SP500 has formed Adam and Adam double bottom pattern. Adam pattern is very similar to a W shaped reversal pattern except for the two related bullish spikes that distinguish the pattern from the W bullish. Point 1 and Point 3 form the basis while point 2 is a continuation point. The POC is formed within 2688-2700 zone and the price could spike from the zone towards 2727 (point 2). A 4h close above 2727 should target 2772 followed by 2808 on a further bullish momentum. Only below W L4 – 2662 the price might turn neutral again. more…

GBP/USD Congestion Zone 1.3866-1.3916

Nenad Kerkez

The GBP/USD has been consolidating within the 1.3866-1.3916 zone and we can see a clear congestion without any clear breakout to the upside. UK January CPI remained at 3.0% contrary to the 2.9 % forecast. Technically the price has been supported at 1.3866-76 and while the price bias remains bullish, the pair needs to make a strong 1h candle above 1.3920 in order to proceed further up. Clear break or 4h close above 1.3920 should target 1.3942, 1.3983 eventually reaching 1.4035 W H4 level. However a break below 1.3840 might go for a retest of 1.3799. more…

Dollar Index Near Turn

Daud Bhatti

DXY Short Term Elliott Wave view suggests that Intermediate wave (3) ended at 88.44. Up from there, Intermediate wave (4) bounce is in progress as a triple three Elliott Wave structure. Rally to 89.64 ended Minor wave W, Minor wave X ended at 88.55, Minor wave Y ended at 90.03 and Minor second wave X ended at 89.48. Cycle from 1/26 low is mature and Intermediate wave (4) can end any moment. However, near term, while pullbacks stay above 89.48, Index has scope to extend higher to 90.67 – 90.95 area to end wave Z of (4) before the decline resumes. We don’t like buying the Index and expect sellers to appear from the above area for a 3 waves pullback at least more…

USD/CAD Might Make A U-Turn If 1.2560 Holds

Nenad Kerkez

The USD/CAD has been in a retracement mode but without an additional momentum to break recent highs. The pair is making a lower high now and if 1.2560 holds we might see a u-turn on the price. Targets are W H3 and W L3 levels – 1.2468 and 1.2376, but in the case you are trading intraday pay attention to W H1 – W L1 levels 1.2437 and 1.2405 respectively. A spike above 1.2560 could turn the price bullish again targeting 1.2606 and 1.2653. more…

S&P500 And DAX Trading Bearish

Grega Horvat

Stocks have turned nicely lower this week, with E-mini S&P catching the downside that occurred on DAX already last week, so it appears that both markets; US and Europe are now in a temporary weakness. Technically speaking we see more downside coming as decline on E-mini S&P500 turned out to be a five wave move from the top, so we know that weakness should resume after a three-wave rally. There is a nice resistance at 2844 from where new leg may occur. more…

Video Analysis: German Dax

Grega Horvat

On the daily chart of German DAX, we can see that price is trading bullish, ideally in a bigger impulsive cycle of a blue wave Five. This blue wave five is an impulse, which means it has a clear structure and has five waves. Specifically, we see price trading within a probable minor correction of blue wave five, in sub-wave IV, which can and usually goes slow and choppy. Well, if price trades as expected, then we think more choppy and slow activity may unfold on DAX within wave IV, before a new leg higher into final sub-wave V starts going. more…

GBPUSD: Expect Pair To Extend Higher

Daud Bhatti

GBPUSD Short Term Elliott Wave view suggests that pair ended Intermediate wave (2) at 1.33 on 16 December 2017. Up from there, Intermediate wave (3) rally is unfolding as 5 waves impulse Elliott Wave structure where Minor wave 1 ended at 1.3613, Minor wave 2 ended at 1.3456, Minor wave 3 ended at 1.3943, Minor wave 4 ended at 1.3797, and Minor wave 5 of (3) ended at 1.434. more…

USD/CAD Is Below The Chuvashov’s Fork

Nenad Kerkez

Overnight support was found on Oil, as prices have begun to rise once again. This is positive for CAD relative to USD. The USD/CAD is currently below both Weekly and Daily L4 support levels, indicating a strong downtrend. At this point, we can see that the price is trapped below the Chuvashov’s fork (magenta trend lines) and a retest of POC zone 1.2385-1.2400 could see some fresh shorts. However short term rejections are possible also around 1.2365 (blue dotted line). Target is Weekly L5 – 1.2322 where we could see some profit taking and a bounce. USD/CAD long trades are possible if the fork is broken. The break of 1.2440 should be a potential long towards 1.2490 and 1.2544. more…

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