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Analysis | Commodity Technical Analysis | Written by HY Markets | Wed Apr 12 17 01:17 ET


Spot Gold was another top winner of Tuesday's strong safe haven buying, triggered by rising geopolitical uncertainty that triggered traders' migration from dollar into traditional safe haven asset Gold. The yellow metal was up 1.6% on Tuesday, running from $1253 low to the American session high at $1275, the highest since Nov 9. Tuesday's strong rally has eventually taken out strong barriers at 1257 (200SMA) which resisted several attacks during past two weeks and former top of 27 Feb at $1263, also probing above Monday's spike high at $1270. Fresh bulls also closed above important $1255 barrier (Fibo 61.8% of larger $1337/$1122 descend, generating another bullish signal.

Rising tensions over North Korea and Middle East, along with upcoming French elections, keep investors nervous and these are supportive factors for further rise in gold's price. Firm close above $1260 zone will be seen as strong bullish signal for gold.

Support: 1263, 1257, 1255, 1250

Resistance, 1275, 1279, 1283, 1291


WTI oil posted marginally higher five-week high at $53.41 on Tuesday, after correcting lower to $52.68, following strong ascend in past three days. Doji candle that was formed on Tuesday could be seen as initial signal of rally's stall on strongly overbought daily slow stochastic and from the fundamental side, rising US shale oil production that for now offsets strong support to the oil prices on rising geopolitical tensions.

Oil price, however, remains well supported in the near-term and could rally strongly on escalation of current political crisis, but consolidation and possible corrective easing are in near-term agenda.

No firmer signals from technical studies, will keep oil price in bullish mode for now.

Solid supports on converged 55/10SMA's at $51.56/65 are expected to contain potential dips and keep strong bullish structure intact.

Support: 53.00, 52.68, 52.29, 51.97

Resistance: 53.41, 53.78, 54.50, 55.00


Dow Jones remains motionless for the third consecutive day and left another Doji candle that signals strong indecision. US stocks moved lower on Tuesday, on rising concerns about Syria and North Korea, but losses were limited, as investors preferred to play safe amid rising geopolitical tensions. Dow Jones moved within 20447/20623 range on Tuesday, but mainly stayed between converging 20/55 SMA's that mark initial pivots at 20657/20547 respectively and sustained break of either would generate fresh near-term signal. In addition, studies on daily chart are in neutral mode and show no clear direction signal for now.

Support: 20547,20500, 20447, 20400

Resistance: 20623, 20657, 20692, 20750

FTSE 100

FTSE index ended Tuesday's trading positively, gaining 0.58% for the day and signalling resumption of recovery leg from 7195, after full retracing 7315/7195 downleg. Daily studies are gaining bullish momentum and signalling further upside, as index closed above daily Kijun-sen pivot at 7311 and fresh bullish extension cracked next barrier at 7343 (Fibonacci 61.8% of 7444/7179 pullback. Rising daily Tenkan-sen that contained Tuesday's action offers strong support at 7268, as rising daily Ichimoku cloud continues to underpin recovery.

Extension and close above 7343 pivot is expected to generate another strong bullish signal.

Support: 7311, 7280, 7268, 7241

Resistance: 7343, 7381, 7400, 7444


DAX extended weak tone on Tuesday and spiked lower to hit fresh nearly two-week low at 12069, on surge through key support at 12141 (Apr 06 low / daily Kijun-sen line). However, losses proved to be short-lived, as index swiftly recovered fall on return back to 12200 zone, where Tuesday's trading ended. The action left long-tailed Doji candle that signalled strong indecision but also signals support for potential further recovery after strong downside rejection. Firm break above daily Tenkan-sen that capped Tuesday's action at 12440 would generate initial bullish signal, trigger stronger recovery, with regain of Monday's high at 12296 to trigger further recovery. On the downside, daily Kijun-sen line should contain extended downticks.

Support: 12200, 12167, 12141, 12069

Resistance: 12240, 12296, 12307, 12346

HY Markets


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