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Analysis | Commodity Technical Analysis | Written by HY Markets | Tue May 09 17 04:42 ET


Gold prices rallied at the beginning of the day, but were unable to hold on to gains and trimmed all of their daily gains ahead of the close. Spot settled at $1,228.19 a troy ounce, as with French elections out of the way, attention shifted back to the US and the possibility of a June rate hike. The bright metal fell in the American afternoon down to a daily low of 1,226.08, and maintains the bearish tone seen on previous updates given that the early advance was rejected on a test of the 100 DMA. Furthermore, the daily chart shows that the Momentum indicator resumed its decline after a brief upward correction, whilst the RSI indicator remains flat around 33. Shorter term, the 4 hours chart shows that the price was contained by a bearish 20 SMA, currently at 1,231.85, while technical indicators have managed to correct extreme oversold readings, but remain within bearish territory, with the RSI heading south around 34 and anticipating some further slides ahead.

Support levels: 1,225.60 1,214.10 1,203.80

Resistance levels: 1,231.85 1,242.50 1,250.90


Crude oil prices closed the day pretty much unchanged, with West Texas Intermediate futures ending at $46.40 a barrel, reverting an early slide down to 45.71. The commodity was unable to attract buyers, despite news showing OPEC and non-OPEC producers are considering extending supply cuts into 2018, as US increasing production revived concerns over a worldwide glut. The daily chart for US oil shows that technical indicators have managed to correct the extreme oversold readings reached late last week, but the RSI is currently flat around 28, while the Momentum indicator recovered within positive territory, rather indicating limited selling interest than suggesting further gains ahead. In the 4 hours chart, the commodity remained capped by a bearish 20 SMA, while technical indicators also corrected oversold conditions but remain within bearish territory, in line with the longer term perspective. The commodity remains vulnerable, with chances of a dip down to the 42.00/42.50 region later this week.

Support levels: 45.90 45.30 44.70

Resistance levels: 47.10 47.75 48.50


Wall Street closed little changed after a dull trading session, with the DJIA up 5 points, to 21,012.28, and the Nasdaq Composite advancing 2 points, to 6,102.66. The S&P ended the day unchanged at 2,399.38, holding near record highs set last week. Within the Dow, Apple was the best performer, adding 2.71%, followed by Exxon Mobil that managed to advance 1.05%. El du Pont remains among the worst performers this month, leading decliners with a 1.10% loss, followed by Goldman Sachs that shed 0.86%. The technical picture hasn't changed, with the benchmark still confined to a tight range daily basis, and neutral-to-bullish, as in the daily chart, it holds above a bullish 20 DMA, whilst technical indicators hold well above their mid-lines, lacking clear directional strength. In the 4 hours chart, intraday slides were reverted on approaches to a still bullish 20 SMA, whilst technical indicators also stand pat within positive territory.

Support levels: 20,986 20,939 20,898

Resistance levels: 21,030 21,071 21,138


The FTSE 100 added 3 points, closing at 7,300.86, despite the sour tone of the leading mining sector. A weaker Pound partially offset losses in the sector, which fell on news that Chinese imports rose by less than expected in April, spurring concerns of base metals' demand. Anglo American suffered the most, leading decliners with a 2.04% loss, followed by Antofagasta that shed 2.02%. Intu Properties was the best performer, advancing 2.15% after housing data released earlier on the day showed steady growth in prices. Daily basis, the index presents a neutral-to-bullish stance as despite holding above its moving averages, technical indicators are flat around their mid-lines, indicating the absence of demand. In the 4 hours chart, the index was unable to surpass its 200 SMA, holding around it, whilst indicators remain within positive territory, but also lacking upward strength.

Support levels: 7,284 7,247 7,200

Resistance levels: 7,332 7,385 7,439


European equities closed the day generally lower, with the German DAX settling at 12,694.55, down by 0.18% or 22 points, with base metal-related equities leading the way lower after Chinese trade balance showed that the world's second largest economy reduced its buying to the slowest pace in six months. Equities briefly rallied at the opening on Macron's victory, but gains were quickly reverted. Within the DAX, only 8 members managed to close with gains, with Deutsche Lufthansa being the best performer, up 3.47%. Commerzbank led decliners, ending the day 3.28% lower, followed by Linde that shed 2.17%. Daily basis, the index remains near record highs and above all of its moving averages that retain their bullish slopes, whilst technical indicators have barely retreated within overbought levels, limiting the risk of a steeper decline. Shorter term, and according to the 4 hour chart, the downward potential is also limited, with the price remains well above a bullish 20 SMA as technical indicators retreated from overbought levels, but lost downward strength well above their mid-lines.

Support levels: 12,668 12,623 12,575

Resistance levels: 12,720 12,765 12,812

HY Markets


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