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Analysis | Commodity Technical Analysis | Written by HY Markets | Thu Aug 03 17 04:32 ET

GOLD

Spot gold ended little changed this Wednesday at $1,268.27 a troy ounce, down at the beginning of the day on soft physical demand in Asia. The commodity bounced back after the US opening as comments from Fed officers triggered concerns over US monetary policy, with the market now doubting on a third rate hike this year. Strong demand for riskier assets, limited gains, although spot holds at near two months highs. In the daily chart, the price remains well above all of its moving averages, with the 100 DMA still horizontal, with the 20 DMA accelerating north below it, and technical indicators in the mentioned chart retreating from overbought levels, supporting a downward corrective movement ahead on a break below 1,262.63, the weekly low and the immediate support. In the 4 hours chart, the price is currently hovering around a bullish 20 SMA, whilst technical indicators head south within neutral territory, indicating an increasing downward potential and in line with the longer term perspective.

Support levels: 1,263.65 1,257.30 1,246.40

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

WTI CRUDE OIL

Crude oil prices recovered some ground this Wednesday, with West Texas Intermediate crude futures settling at $49.57 a barrel, despite disappointing US inventoriesĀ“ data. Late Tuesday, the API reported an inventory build of 1.779 million barrels, while according to the EIA, stockpiles fell by 1.5 million in the week ended July 28th, nearly half market's expected decline of 2.96 million. The commodity fell as an immediate reaction to the news, but changed course amid broad dollar's weakness. The daily chart shows that the price continues trading between its 100 and 200 SMAs, while technical indicators have managed to recover modestly within positive territory, indicating that bulls are still in the driver's seat. In the 4 hours chart, the commodity pared gains around a horizontal 20 SMA, while technical indicators reached their mid-lines before losing directional strength, not enough to confirm further gains, but surely converging with the longer term perspective.

Support levels: 48.80 48.30 47.70

Resistance levels: 50.20 50.85 51.40

DJIA

The Dow Jones Industrial Average closed at 22,016.04, up 52 points and above the 22,000 level for the first time ever, after Apple's latest resulted pushed the technology sector higher. The S&P advanced just 1 point, to settle at 2,477.57, while the Nasdaq Composite closed flat at 6,362.65. Apple was the best performer, up 4.99% after the company reported late Tuesday a quarterly revenue of $45.4 billion and quarterly earnings per diluted share of $1.67. Walt Disney Co. led decliners, ending the day 1.93% lower, followed by Verizon that shed 1.60%. The Dow maintains its bullish stance, despite technical indicators in the daily chart are heading north within overbought territory, whilst the 20 SMA accelerated its advance below the current level. In the shorter term, and according to the 4 hours chart, the Momentum indicator diverges south, retreating from overbought readings, whilst the RSI indicator holds around 72, whilst the 20 SMA extended its advance below the current level, all of which favors a continued advance for this Thursday.

Support levels: 21,993 21,940 21,895

Resistance levels: 22,036 22,080 22,140

FTSE100

The FTSE 100 continues lacking directional strength, settling at 7,411.43, up 12 points or 0.16% this Wednesday, undermined by persistent strength in the Pound and a decline mining-related equities. Rio Tinto dragged the sector lower, despite reporting healthy profits, after warning that metal prices are likely to remain volatile for the rest of the year. Shares for the company closed 2.83% lower. Standard Chartered was the worst performer, shedding 6.05%, followed by Rolls-Royce that ended 3.68% lower. Old Mutual led advancers, adding 3.31%. The daily chart for the index presents a neutral stance, as it settled right above still directionless 20 and 100 DMAs, while technical indicators remain flat within neutral territory. In the 4 hours chart, the downward potential seems limited, as the Momentum indicator heads north above its mid-line, although with the index still trapped between modestly bearish moving averages and the RSI indicator flat at 52, little more could be expected at this point.

Support levels: 7,392 7,340 7,294

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

DAX

European equities edged lower, with the German DAX down 69 points to close the day at 12,181.48, weighed by EUR's strength, and weak banks' results. In Germany, Deutsche Lufthansa led advancers with a 2.27% gain, followed by Vonovia that added 1.38%. The worst performer was Heidelberg Cement that shed 3.49%, while Commerzbank lost 2.47% and Deutsche Bank ended 1.22% lower. The index seems poised to extend its decline, as in the daily chart, the Momentum indicator maintained and extended its bearish slope, now nearing oversold levels, whilst the RSI indicator resumed its decline, currently around 38. In the same chart, the 20 DMA crossed below the 100 DMA above the current level, reaffirming the negative stance. In the 4 hours chart, the index hovers around a bearish 20 SMA, whilst the Momentum indicator lacks directional strength, hovering around its mid-line, and the RSI indicator hovers around 44.

Support levels: 12,161 12,120 12,084

Resistance levels: 12,245 12,295 12,343

HY Markets
http://www.hymarkets.com

 

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