Crude Oil
Crude oil turned into a strong bullish mode in September which looks like an impulsive price move on the 4h chart. The reason is an extended and sharp leg from 44.14 to 51.50 that looks like wave 3 of an impulsive structure. If that’s true then we know that the market is in new bullish phase so the uptrend should continue after wave 4 pullback. The fourth waves are corrective waves that will normally retrace for 38.2% compared to wave 3, which, in our case, comes in at 49.00 area, so we think this region can be hit before the price turns up for wave 5. Invalidation level is at 46.52; as long as this swing high of wave 1 is not breached we are bullish.
Crude Oil, 4h
GOLD
Gold broke to the downside last week, which we assumed would happen as bearish momentum was increasing over the last few days. Gold moved strongly down, clearly with an impulsive decline. It’s a five wave structure from 1344 which means that gold can be ready to turn now with minimum three legs up, back to 1280 area. From a bullish point of view, we would need a rise above 1302 to confirm a low in place of a wave C of B)/II).
GOLD, 4H