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Analysis | Commodity Technical Analysis | Written by HY Markets | Tue Aug 08 17 04:07 ET

GOLD

Gold prices remained range bound this Monday, with spot recovering from a daily low of 1,255.69 to end the day pretty much flat at $1,258.75 a troy ounce. The dollar traded firmer against its major rivals, keeping the safe-haven commodity steady near the two- week low posted last Friday. Fed's Bullard comments on rates, however, limited the downside as he said that he is comfortable with current rates, somehow indicating no rush in implementing the third rate hike promised by the Central Bank at the end of 2016. Technically, the daily chart shows that spot met buying interest around a bullish 20 DMA, which heads north a few points above a flat 100 DMA. In the same chart, however, the Momentum indicator extended its decline, now poised to break below its 100 level, whilst the RSI indicator stabilized around 54. In the shorter term, and according to the 4 hours chart, the risk is towards the downside, as the price remains well below a bearish 20 SMA, whilst the Momentum indicators accelerated south within negative territory as the RSI indicator consolidates around 41.

Support levels: 1,254.10 1,245.20 1,235.20

Resistance levels: 1,265.30 1,274.05 1,283.30

WTI CRUDE OIL

Oil prices edged lower on Monday, but trimmed most of their intraday losses ahead of the close, with West Texas Intermediate crude futures settling at $49.35 a barrel. Major oil producers are is undergoing a two-day meeting in Abu Dhabi, focusing on the compliance level to the output cut pact made last November. Nevertheless, market players will likely wait for US stockpiles data before taking fresh decisions on oil. In the meantime, the daily chart shows that the black gold remains below a flat 200 DMA but above the 20 and 100 DMAs, whilst the Momentum indicator aims north within positive territory, whilst the RSI indicator turned modestly lower, now around 59. In the 4 hours chart, the price is currently struggling with a flat 20 SMA, while technical indicators have turned higher within negative territory, now around their mid-lines, not enough to confirm an upward extension, at this point. The pair presents multiple intraday lows around 48.50, with a break below the level probably opening doors for a steeper decline.

Support levels: 48.50 47.90 47.20

Resistance levels: 49.65 50.20 50.85

DJIA

US equities closed modestly higher this Monday, with the Dow posting its ninth consecutive record close, settling at 22,118.42, up daily basis by 25 points. The Nasdaq Composite gained 0.51%, to end at 6,388.77, while the S&P added 4 points, to 2,480.91. Action was limited in the financial world as the NFP dust settled, and investors began the search for the next catalyst. Within the Dow, Apple was the best performer, adding 1.57%, followed by Goldman Sachs that gained 1.25%. United Technologies led decliners with a 2.49% loss, followed by Walt Disney that shed 1.40%. The technical outlook remains positive for the benchmark, as the daily chart for the Dow shows that technical indicators keep advancing despite being in extreme overbought territory, whilst the 20 DMA further advanced below the current level. In the 4 hours chart, technical indicators have turned marginally higher after a period of consolidation within positive territory, whilst the price stands above a bullish 20 SMA, maintaining the risk towards the upside.

Support levels: 22,070 22,023 21,982

Resistance levels: 22,137 22,180 22,225

FTSE100

The FTSE 100 added 20 points or 0.27% this Monday to end at 7,531.94 a fresh 2-month high, underpinned by an advance in mining-related equities and a weak Pound. An advance in iron ore prices backed the mining sector, with Anglo American leading the way higher, up 3.11%, followed by Glencore that gained 2.59% and Rio Tinto that closed 2.57% higher. Paddy Power Betfair led decliners, closing 4.67% lower, followed by Pearson that shed 3.81%, with retailers under pressure after Visa said that household spending fell by 0.8% in July within the UK. The daily chart for the index shows that it advanced further above its 20 and 100 DMAs, while technical indicators hold well into positive territory, although losing their bullish strength. In the 4 hours chart, technical indicators have also lost upward strength, but within overbought territory, but the index settled well above a bullish 20 SMA that finally crossed above the 200 SMA, all of which suggesting the advance may continue this Tuesday.

Support levels: 7,487 7,440 7,392

Resistance levels: 7,540 7,572 7,600

DAX

The German DAX closed the day 540 points lower at 12,257.17, as trading within European equities was choppy. Denting German shares were local soft macroeconomic industrial production figures, although gains in banking related equities maintained losses limited. Most members closed lower, with Fresenius being the worst performer, down 1.50%. Deutsche Telekom, on the other hand, led advancers adding 1.43%. Commerzbank added 0.66%, while Deutsche Bank shed 0.62%. From a technical point of view, the index remains biased lower, as an intraday advance met selling interest around a bearish 20 DMA that extended its slide below the 100 DMA, whilst technical indicator have lost their upward momentum within positive territory. In the shorter term, and according to the 4 hours chart, the index remains a few points above a modestly bullish 20 SMA, but below the 100 and 200 SMAs, whilst technical indicators turned flat around their mid-lines, failing to give clear directional clues.

Support levels: 12,210 12,174 12,128

Resistance levels: 12,275 12,323 12,381

HY Markets
http://www.hymarkets.com

 

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