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.
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.