Black and Yellow: The future perspectives

17 October, 2016

Gold has been actively declining during the several weeks in a row. The strong 1175.00 level (horizontal trend line and Fibonacci levels) is the first level we are waiting for a correction from. It is also the level we should try to buy assets from:

A pennant is now about to form in the daily chart, and it is aimed to reach the abovementioned level of 1175.00. However, there is a very strong barrier at the level 1207.00, which coincides with the 50% Fibonacci level, as it expands along the last move. This is going to be quite a nice point to buy from when forming the candlestick patterns. Although, the latter should be done only once the level corrects itself up to the broken pennant. The alternative option is a breakdown of the 50% Fibonacci level, pullback and continuation of movement:

WTI

The Crude oil pulled back away from the resistance zone of 51.20-22.00 and is now about to head South after Gold. It is probably wise to wait for a small drop in the pink ascending channel to happen:

USD/CHN

The offshore Yuan has broken the historical maximum and strengthened its position with the help of the two candlesticks behind the broken level. The third candle is missing to confirm this fact. In the 4-hour chart, the rate is steadily pushing down on the broken level, which has been serving as the support of the forming hammers and dojis. Let’s try to buy the pair at the market opening (stop should be placed next to 6.7250), but aiming at 6.7800. There is also a possibility of a long black candlestick being formed on the daily chart. It should look like a shooting doji star.


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