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Analysis | Commodity Technical Analysis | Written by HY Markets | Thu Mar 16 17 23:49 ET

GOLD

Gold prices continued advancing this Thursday, with spot reaching $1,233.62 a troy ounce, to settle at 1,226.60. The sharp advance in the commodity came after the US Federal Reserve indicated that they won't accelerate the pace of tightening. Gains were contained by increasing optimism after Dutch elections that fueled demand for higher yielding assets. The daily chart for the commodity shows that the price settled below its 20 DMA and a Fibonacci resistance, the 23.6% retracement of the latest daily bullish run at 1,230.10, holding also far below a bearish 200 DMA, currently at 1,250.65. This last, capped February's rally. In the same chart, technical indicators have extended their recoveries, with the Momentum still below the 100 level and the RSI at 53. In the 4 hours chart, the price is struggling around the 100 and 200 SMAs, both converging around 1,227.00, while technical indicators have turned modestly lower, still holding within overbought territory. Should the price extend beyond the mentioned 1,230.10, the risk turns towards the upside for this Friday.

Support levels: 1,223.15 1,212,90 1,203.30

Resistance levels: 1,230.10 1,242.50 1,250.65

WTI CRUDE

Crude oil prices managed to extend their advances at the beginning of the day, but later retreated, with West Texas Intermediate crude futures settling at $48.70 a barrel after peaking at 49.60 at the beginning of the day. Concerns about rising output in the US weighed on the commodity, despite the latest EIA report showing that stockpiles decreased for the first in the past ten weeks. The daily chart shows that the commodity advanced briefly, but settled below the 200 DMA, currently at 49.10, while technical indicators have turned flat in oversold territory after a modest upward correction, indicating that buying interest remains limited. In the 4 hours chart, the price is standing a few cents above a flat 20 SMA, while technical indicators have pulled back towards their mid-lines, now attempting to bounce, but still within neutral territory.

Support levels: 48.00 47.30 46.65

Resistance levels: 49.10 49.75 50.50

DJIA

US indexes closed mixed, but not far from their daily openings. The Nasdaq Composite advanced less than 1 point, and closed at 5,900.76, while the S&P and the Dow closed in the red, with the first down 3 points to 2,381.38 and the DJIA shedding 15 points or 0.07%, to 20,934.55, as investors continued to digest the latest Fed's announcement. Within the Dow, most members closed lower, with oil-related equities leading the decline as the commodity failed to extend its latest recovery. El du Pont was the worst performer, closing 1.08% lower, followed by Chevron that shed 0.94%. Financials were among the best performers, with American Express up 0.68% and Goldman Sachs adding 0.58%. The index's daily chart shows that it held again above its 20 DMA that anyway has partially lost its upward strength, whilst technical indicators erased the positive momentum gained on Wednesday, although hold within positive territory. In the 4 hours chart technical indicators have also lost their bullish strength, now flat above their mid-lines, whilst the 20 and 100 SMAs converge at 20,900, providing an immediate support that if broken, could lead to a deeper correction.

Support levels: 20,900 20,852 20,817

Resistance levels: 20,978 21,015 21,064

FTSE 100

The FTSE 100 closed at a record high of 7,415.95, up by 47 points or 0.64%. The index got a boost from mining-related equities, as a weaker dollar fueled the recovery of base metals. The Footsie reached an all-time high of 7,445, although a strong advance in the Pound weighed on equities mid London session. The top performers were Anglo American closing the day 8.62% higher, Glencore adding 5.01% and Antofagasta surging by 4.65%. Hikma Pharmaceuticals was the worst performer, down by 4.66%. The daily chart shows an increasing upward potential, as the Momentum indicator finally advanced from neutral territory, heading now north at fresh 2-month highs, whilst the RSI indicator also heads sharply higher around 68, and the index holds above all of its moving averages. In the 4 hours chart, technical indicators resumed their advances within positive territory after correcting overbought conditions, whilst the 20 SMA has accelerated its advance below the current level, supporting additional advances as long as Pound's rally remains contained.

Support levels: 7,399 7,363 7,338

Resistance levels: 7,445 7,480 7,510

DAX

The German DAX added 73 points to settle at 12,083.18, with all of the broad-based European indexes closing with gains this Thursday, fueled by previous Wall Street's gains, and with optimism surging in the region after the ruling party defeated its populist competitor in the Dutch elections. Within the DAX, Deutsche Lufthansa was the best performer, adding 4.18%, followed by Deutsche Post that gained 1.87%. Heidelberg Cement led decliners, down 1.83%. The DAX closed off an multi-month high of 12,177, level last seen in March 2015. Holding near the mentioned close, the daily chart shows that the benchmark posted a higher high and a higher low daily basis, holding above bullish moving averages, whilst technical indicators head north within positive territory, favoring additional advances ahead. In the 4 hours chart, the index also stands above bullish moving averages, with the 20 SMA now at 12,018, whilst technical indicators have turned flat within positive territory after correcting overbought conditions.

Support levels: 12,059 12,018 11,977

Resistance levels: 12,099 12,140 12,178

HY Markets
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