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Analysis | Commodity Technical Analysis | Written by HY Markets | Thu Feb 09 17 00:21 ET

GOLD

Spot gold surged to $1,244.67 a troy ounce, its highest in almost three months, as risk aversion dominated the scene, amid political woes in Europe and uncertainty surrounding the new US administration. Base metal also gathered support from news coming from Chile, as workers at the biggest cooper mine in the country that belongs to BHP Billiton, vowed to strike. Dollar's weakness added to gold's bullish case, moreover as chances of a US rate hike continue to diminish. From a technical point of view, the daily chart shows that technical indicators are gathering upward momentum, the RSI around 71, but the Momentum still within bearish territory. In the same chart, the 20 SMA maintains a bullish slope, advancing modestly above a bearish 100 SMA, both in the 1,210/12 region, all of which favors a new leg higher, now looking to test the 61.8% retracement of the post-US election' slide at 1,255.15. In the 4 hours chart, technical indicators eased from near overbought readings but remain well above their mid-lines, whilst the 20 SMA maintains a sharp bullish slope, now converging with the 50% retracement of the same decline around 1,230.00, in line with the longer term outlook.

Support levels: 1,230.00 1,219.40 1,210.10

Resistance levels: 1,244.70 1,255.15 1,263.90

WTI CRUDE

Crude oil prices fell to their lowest in four weeks, with West Texas Intermediate crude futures trading as low as $51.25 a barrel, undermined by the API stockpiles report released late Tuesday, reporting a build of 14.2M barrels. The EIA report released this Wednesday, also showed a large build, but a surprise decline in gasoline inventories offset the crude number. According to official data, US crude stocks rose 13.8 million barrels in the last week as refineries cut output, while gasoline stocks decreased by 900,000 after adding 3.9 million barrels in the previous week. Gasoline futures soared 2.7%, helping oil to recover some ground. WTI daily chart shows that the price remains below a horizontal 20 SMA that stands around 53.00, whilst technical indicators have turned higher within negative territory, unable to confirm further recoveries ahead. In the 4 hours chart, the 20 SMA has crossed below the 100 and 200 SMAs, whilst technical indicators have bounced from oversold readings, but the upward momentum faded will below their mid-lines, limiting chances of further recoveries, at least, as long as the price remains below the 53.00 level.

Support levels: 51.80 51.10 50.40

Resistance levels: 53.00 53.65 54.20

DJIA

Wall Street closed once again mixed and with the major indexes settling no far from their opening levels, as investors wait for a clear catalyst before taking stronger positions. The Dow Jones Industrial Average fell roughly 36 points or 0.18%, to end the day at 20,054.34. The Nasdaq Composite set another record close, up by 8 points or 0.15%, to 5,682.45, while the S&P also closed in the green, up 0.07% to 2,294.67. Nike was the best performer within the DJIA, up 2.03%, followed by Wal-Mart that added 1.32%. The banking sector was the worst performer, with JPMorgan chase leading losers' list, down by 0.97%. Technically, the Dow set a lower low and a daily basis, but holds within its weekly range, and the daily chart shows that it's still above a modestly bullish 20 SMA, this last around 19,940, whilst technical indicators have turned flat within positive territory, reflecting the lack of directional strength seen ever since the week started. In the shorter term, and according to the 4 hours chart, the index has settled right below a now flat 20 SMA, acting as immediate resistance at 20,067, while technical indicators stand pat around their mid-lines. Despite setting a fresh record high this week, the upward potential is moderated amid the ongoing risk-averse environment, although a break below 20,008, the weekly low, is required to confirm a bearish extension during the upcoming sessions.

Support levels: 20,008 19,940 19,869

Resistance levels: 20,067 20,104 20,160

FTSE 100

Wall Street closed once again mixed and with the major indexes settling no far from their opening levels, as investors wait for a clear catalyst before taking stronger positions. The Dow Jones Industrial Average fell roughly 36 points or 0.18%, to end the day at 20,054.34. The Nasdaq Composite set another record close, up by 8 points or 0.15%, to 5,682.45, while the S&P also closed in the green, up 0.07% to 2,294.67. Nike was the best performer within the DJIA, up 2.03%, followed by Wal-Mart that added 1.32%. The banking sector was the worst performer, with JPMorgan chase leading losers' list, down by 0.97%. Technically, the Dow set a lower low and a daily basis, but holds within its weekly range, and the daily chart shows that it's still above a modestly bullish 20 SMA, this last around 19,940, whilst technical indicators have turned flat within positive territory, reflecting the lack of directional strength seen ever since the week started. In the shorter term, and according to the 4 hours chart, the index has settled right below a now flat 20 SMA, acting as immediate resistance at 20,067, while technical indicators stand pat around their mid-lines. Despite setting a fresh record high this week, the upward potential is moderated amid the ongoing risk-averse environment, although a break below 20,008, the weekly low, is required to confirm a bearish extension during the upcoming sessions.

Support levels: 20,008 19,940 19,869

Resistance levels: 20,067 20,104 20,160

DAX

European indexes closed flat, with the German DAX down 6 points, to 11,543.38. Banking related equities remain under pressure across the region as investors continued unwinding the Trump-trade, but an advance in utilities stocks offset the sector's decline. Within the DAX, Commerzbank was the worst performer, closing the day down 1.73%, followed by Deutsche Bank that shed 1.59%. Vonovia led winners' list, up 3.03%, followed by RWE which added 2.85%. Additionally, persistent political concerns in the EU pushed investors to the sidelines ahead of some clarity. From a technical point of view, the German benchmark presents a neutral-to-bearish stance, given that in the daily chart, it remains below a horizontal 20 SMA, while the Momentum indicator holds around its 100 level and the RSI indicator turned south around 49. In the 4 hours chart, the 20 SMA heads south above the current level and below the 100 SMA, whilst technical indicators remain directionless, but within negative territory, leaning the scale towards the downside for the upcoming session.

Support levels: 11,520 11,463 11,408

Resistance levels: 11,605 11,660 11,711

HY Markets
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