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Analysis | Commodity Technical Analysis | Written by HY Markets | Wed Aug 02 17 04:44 ET

GOLD

Gold prices extended their advances to near 2-month highs, with spot settling at $1,272.80 a troy ounce, not far from a daily high of 1,274.04. The bright metal gained most ground during the US session, as despite not negative, US data released earlier on the day failed to back the case for another rate hike ahead. Also, backing the advance of the metal were easing equities at the end all of the day, as despite closing in the green, US indexes spent most of the session retreating from their early peaks. Spot's daily chart shows that it's still biased north, extending further its advance above all of its moving average, and with the shortest gaining upward momentum well below the current level, whilst technical indicators present a neutral-to-bullish stance within overbought territory. In the 4 hours chart, the price remains above a bullish 20 SMA, with a short-lived slide below it being quickly reverted, and technical indicators retreating within positive territory, hardly enough to confirm a downward move.

Support levels: 1,266.90 1,257.30 1,246.40

Resistance levels: 1,274.05 1,283.30 1,290.10

WTI CRUDE OIL

West Texas Intermediate crude oil futures advanced up to $50.41 a barrel at the beginning of the day, but ended the day lower around 49.15, on another report indicating that OPEC's output rose in July, despite the organization output cut deal. After Reuters reported a 90,000 barrels per day increase on Monday, Bloomberg estimated this Thursday that the cartel's output rose by 210,000 barrels a day, while Petro-Logistics said the producer group's output was up by 145,000 barrels a day last month. Ahead of the US stockpiles reports, WTI plunged to 48.36 intraday, retreating from its 200 DMA in the daily chart after flirting with it late Monday, whilst technical indicators in the same chart have turned sharply lower from overbought readings. Still, the price holds above its 20 and 100 SMAs, with the shortest maintaining its bullish slope. In the 4 hours chart, the commodity has turned short-term bearish as technical indicators head south within negative territory, whilst the price broke below a now flat 20 SMA.

Support levels: 48.80 48.30 47.70

Resistance levels: 49.60 50.20 50.85

DJIA

US indexes closed in the green, with the Dow Jones Industrial Average reaching an all-time intraday high of 22,018 early session, and settling at 21,963.92, up 72 points or 0.33%. The Nasdaq Composite added 14 points, to settle at 6,362.94, while the S&P gained points to 2,476.35. Within the Dow, Intel Corp was the best performer up 2.48%, followed by Chevron that added 1.46%. Boeing was the worst performer, down 1.25%, followed by Caterpillar that shed 0.75%. Up for a sixth consecutive session , the daily chart for the Dow shows that the RSI indicator advanced further within overbought territory, currently heading north around 74, whilst the Momentum indicator keeps consolidating well above its mid-line, lacking upward strength. In the same chart, the 20 DMA has accelerated its advance, but stands well below the current level, around 21,660. In the 4 hours chart, technical indicators are easing from extreme oversold readings, but the RSI indicator remains above 70, while the 20 SMA advanced further below the current level, all of which maintains the risk towards the upside for the upcoming sessions.

Support levels: 21,940 21,895 21,841

Resistance levels: 21,977 22,030 22,070

FTSE100

The FTSE 100 closed at 7,423.66, up 52 points this Tuesday, boosted by a positive mood among investors, and strong earnings reports. Rolls Royce was the best performer, up 10.25% after the company reported a 12% raise in revenues to £7.57bn for the first six months of the year, helped by a 27% increase in large engine deliveries. Intertek Group followed, up 9.16% on news that its half-year profits rose more than 20% to £210.3m. Fresnillo was the worst performer, down 2.60%, followed by Mediclinic International that shed 2.03%. The index recovered above its 20 and 100 SMAs in the daily chart, but remains previous highs and with moving averages still lacking directional strength, mostly in a consolidative phase. Technical indicators in the mentioned chart stuck around their mid-lines, also confirm the neutral stance. In the shorter term, and according to the 4 hours chart, the index continues developing between horizontal moving averages, whilst technical indicators continued recovering from near oversold levels before turning flat right below their mid-lines, in line with the longer term perspective.

Support levels: 7,340 7,294 7,257

Resistance levels: 7,440 7,587 7,610

DAX

The German DAX added 134 points or 1.10%, to close at 12,251.29, backed by solid local growth reports and the positive momentum among Asian equities. According to Markit, German manufacturing remained in a strong expansionary phase at the start of the second half of 2017, with the PMI printing 58.1 in July, slightly below previous. The best performer was Deutsche Lufthansa, up 3.30%, followed by E.ON that gained 2.79%. Only two members closed lower, Adidas that lost 0.62% and Merck, which closed down 0.61%. In the daily chart, the index remains well below its 20 and 100 DMAs, with the shortest extending below the larger, while technical indicators are barely bouncing from oversold territory, not enough to indicate a steadier recovery ahead. In the 4 hours chart, the upside looks a bit more constructive, as the index settled above its 20 SMA, whilst the Momentum indicator heads north above its 100 level and the RSI consolidates around 53.

Support levels: 12,215 12,161 12,120

Resistance levels: 12,302 12,347 12,383

HY Markets
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