by Graham Osano
Weekly Review. S&P500, Brent, gold
Monthly chart: Tendency remains the same. Nobody knows how high the index will go, oscillator shows divergence (indicating possible bullish weakness), ADX is passive. Considering all that we are still expecting the index to reverse to the downside.
Weekly chart: local resistance is on upper Bollinger band (2303.5), support is on middle band (2195.1). It is also safe to say that current bullish potential is not enough - ADX/RSI parameters are not trending.
Daily chart: the more likely scenario for this week is flat within Bollinger bands range (2249.4-2283.2)
Expectations: we are expecting flat within the range of 2249.4-2283.2
Solutions: trading within corridor of 2249.2-2283.2 (selling is more recommended)
Monthly chart: as we might see bulls still lack trend potential to break upper Bollinger band (66.80). So decline towards middle Bollinger band (51.23) is more likely.
Weekly chart: on the weekly chart oil is trapped within upper Bollinger envelope range (51.23-59.33). ADX is active that can cause local sharp moves.
Daily chart: locally Bollinger bands are stable and forming corridor of 54.13-57.51. Considering weak ADX this range is likely to preserve during the whole week.
Core scenario - flat in 54.13-57.51
Alternative scenario - rise to 59.33 and then decline
Solutions: consider selling from 57.51 and 59.33 regions (depending on the scenario)
Monthly chart: if bulls have already started to work with local Over&Under pattern, it will help them to continue rising towards upper Bollinger band (1364.11)
Weekly chart: considering current set-up the price might start a new decline towards 1103.50. Strong resistance at 1236.82 (middle Bollinger band) is a nice indicator of such scenario.
Daily chart: there is a valid resistance in 1236.82 region. ADX moves counter oscillator, that can be a sign of coming downside reversal.
Expectations: we are expecting the pair to touch 1236.82 and then decline towards 1174.06 and 1103.50 (in mid-term)
1. Consider buying towards 1236.82
2. Consider selling from 1236.82 to 1174.06
Check the website for more information https://freshforex.com/analitics/fresh-forecast/forex-correlation-and-Elliott-wave-analysis/
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