TARGET – $1,500 —Trend changing/not confirmed yet
Bullish expecting long-term trend reversal to occur. Major bottom is most probably in around the 50% Fibonacci retracement as price bounces off the long-term downward sloping wedge.
Gold price is expected to move towards $1,500 at least once we have confirmation of the trend reversal. This trend reversal will be confirmed when we break above $1,200. Even longer-term target is new highs but too early to talk about it now. We are on the look out for a 5 wave move to complete from $1,050. As you can see in my free daily analysis we are very close to completing 5 waves up. So this will be a big step to trend change. That is why I hold on to my long positions in NUGT as the upside potential is huge for Gold.
OIL- Crude- WTI
Target 50-60$ —- Trend remains bearish, change above 38.40$
Oil has produced a bullish divergence in the weekly RSI and has reached the 2008 lows. A strong bounce is justified from this area towards 50-60$ price zone.
Traders never expected at 100$ per barrel to see price at 20$. Now at 30$ everyone expects it. I think it is time to be a contrarian in Oil as I expect a bounce towards the weekly cloud resistance at 50-53$ at least. There is a clear triple divergence in the RSI and combined with the fact that according to wave theory we are most probably in the final wave of the decline from above $100, traders should be looking for a reversal signal as trend remains bearish. I’m bullish oil and that is why I hold on to my longs in UWTI and will be looking to add.
For the end I will show you my two charts for NUGT and UWTI.
Will be keeping a close eye on these two as I believe both will make a big rally in 2016. Will produce regular updates if needed regarding my view and strategy for both.