Market Review: Weekly Outlook May 20th- 24th ( Last Update 22th May )

Gold

Gold is showing two things on the hourly chart. First, a double top has just completed with the price of the asset presently at the neckline (1382.70). Secondly, the asset has resumed downtrend movement after the upward retracement stopped at the 50% Fibonacci retracement line. A break of the neckline to the south will be a signal to purchase a Put contract with a 24-hour expiry time. This trade should evolve on Tuesday May 21st. The nearest support is at 1336.25, so this gives the trade some room to perform according to expectations.

Update ( 22th may )

Price has broken the neckline to the downside and triggered our PUT signal. The position taken on our own platform is presently in profit territory as seen below:

 

gold chart

Gold  Price Chart

gold trade

Gold Trade

We can see the snapshot showing the date of the trade, as well as the standing of the trade. With just an hour to go, we are solidly in profit territory.

Silver

A symmetrical triangle is forming on the hourly chart for silver. This means that the asset is poised to go either way. Traders should purchase a PUT contract if the asset breaks below the lower trend line of the symmetrical triangle, or go the other way if the reverse occurs. This trade requires patience for the setup to complete.

EURUSD

The EURUSD on the daily chart is setting up for a big move down south, courtesy of the descending triangle that is setting up nicely on the chart. There must be a break of the trendline at 1.2784 in order for the downward move to be confirmed. Only on the break of this lower trendline should traders purchase a PUT contract with an expiry of at least 72 hours.

Otherwise, traders should purchase a CALL contract at that trendline level if the line is not broken, with a 24-hour expiry.

Oil

Light sweet crude has topped at 96.59 to 97.00, and unless there is some impetus from the Crude Oil Inventories report, oil should make a slight move downwards. The bias for the trade is therefore a bearish one, favouring a PUT contract purchase at current levels with an expiry time of 72-96 hours.

UPDATE ( 22th may )

Oil topped and made a move downwards as predicted. The chart shows the movement as predicted in our trade call, which should have prompted a PUT trade.

 

Oil prices chart

Oil prices chart

Nikkei225

If the Dow gains on Tuesday, purchase a CALL contract at market open of the Nikkei 225 and time the expiry to end within the first hour of trade (i.e. a one hour expiry). If the Dow sheds some weight at the end of the trading session, purchase a PUT option on Nikkei225 to terminate one hour into the market trade.

More trades will be posted as they become available.

 

Feature Broker: EZTrader

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