In less than a week Crude oil dropped $2. Silver dipped to $16.5 and Gold bearish correction continues. We had a perfect forecast especially for Crude oil. This update looks at these popular commodities and what could happen this week and coming weeks based on Elliott wave analysis.
2 October Crude oil Elliott wave analysis
The Crude dropped further as the market opened today. We were expecting price to drop to around $45 to complete a larger degree triangle pattern. The medium-term direction still remains upside despite the drop that may continue this week. In the last update, we used the chart below.
We expect Crude to drop to complete wave-E of the larger triangle. Price could drop to $45-$47 in the coming weeks. Once the triangle completes and holds, a strong breakout upside is very likely.
This is what is happening now.
Yes.The Crude is dropping more and this is expected to continue this week. A drop to $45 is likely. This drop is completing the last leg of the larger degree triangle and it’s expected to be corrective -probably one of the Zigzag patterns. The latest top now is $52.8.
2 October Gold Elliott wave analysis
Gold is trying to complete a triple zigzag downside. In the last update, we earmarked two levels to watch for reversal. A breakout was also expected for confirmation.
The triple zigzag pattern was projected to end at 1276.23 (present price) or lower to 1265.88 before breaking upside. Price is presently at the wave (x) region of the last rally. This could also serve as a support level.
We were very clear in our last forecast that a breakout would be required. Price still remains at the zone of reversal – a bit above 1265.88. The chart below shows what we now have.
Price is now at a very strong Fib-confluence zone. This is usually a good reversal zone as price might be supported there. It will be very nice to see how price reacts to a strong zone like this. Personally, I’m interested in price reaction to this zone. A break above wave b of C at 1290.5 should be the required confirmation. A strong break above the white trendline connecting the internal waves of Z is an ‘warm-up’ sign. There is also the possibility of a ‘head and shoulder pattern cementing this bottom. A break below the zone could see price head to 1250 (the next reversal level) before the upside break.
2 October Silver Elliott wave analysis
This commodity was at the verge of breaking upside after the formation of a ‘head and shoulder’ pattern at the bottom of an impulse wave. The following was the highlight from the last update.
There is a support at 16.53 which price may test before going upside provided there is no breakout as shown above. If price breaks above the yellow trendline, there are strong chances that a 3-wave rally will be seen to 17.5 or above
Price didn’t break upside before hitting the 16.53 bottom as the following chart shows.
If price is resisted below the yellow trendline above, the next support lies at 16.06. A breakout upside will be required to consider the bullish move expected.
Please comment your thoughts in the comment box below.