Commodities Weekly Forecast Oct 23 2017

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WTI: Bullish, Eyes The 54.09 Levels With Caution!

As long as 50.88/49.30 support holds on a weekly closing basis, the WTI Crude Oil remains on the upside. At this point, the pair needs to break and hold above the 51.80 levels on a weekly closing basis or (a sustained breakout on a daily basis) to prevent a return to the downside, if seen it will aim the 54.09 levels, a halt is likely but a break will open 56.32, further upside resistance stands at the 59.82 levels.

Alternatively, a failure to hold above the 51.80 levels on a weekly closing basis could mean a return to the 49.30 levels, a cut through that level will suggest short-term topping and pave the way to the 45.50 levels ahead of 42.70 levels…

Conclusion: The WTI OIL continues to face upside threats above the 50.88/49.30 levels with risk to the 54.09 levels…

Notes:

1- A weekly closing above 51.80 will aim 54.09 levels.

2- A weekly closing above 54.09 will pave the way to 59.82 levels.

3- A failure to hold above 51.80 (weekly basis) could mean a return to the 49.30 levels.( the pair close last week above 51.80 but it didn’t make a clear breakout)…

4- The daily chart shows possible corrective pullback if seen. buyers should return nearĀ support levels…

5- If the pair manages to reach 54.09 levels, we have a strong static resistance on the weekly chart so a pullback will be insight, anyway if this occurs, support comes at 53.05 ahead of 51.80 levels…

6- We have hidden bullish divergence, neckline comes at 52.93 levels, a weekly closing above that level may expose the 54.09 levels and pave the way to the 59.82 levels.

blankXAUUSD: Bearish Eyes The 1251 Levels…

As long as 1306 resistance holds on a weekly closing basis, the XAUUSD remains on the downside to 1251 levels, a halt is likely but a cut would open the 1232/1204 levels ahead of 1188 levels.

A failure to hold below 1276 on a weekly closing basis could mean a return to the 1306 levels before another fall, below 1276 will accelerate the expected bearish move to the 1251 levels.

On the upside, above 1306 sees a recovery risk to 1340/1354 levels before another fall.

Conclusion: The XAUUSD continues to face downside threats below the 1306 levels.

Note that daily chart resistance comes at the 1291 levels below that level will aim the 1267 levels ahead of the 1258/1251 levels. anyway; the weekly chart suggests possible rebound if seen it should bring a selling opportunity but we also have another option: the pair may dip to 1251 then rebound to the upside if this scenario happens, be careful with shorts!!!

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