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Analysis | Commodity Technical Analysis | Written by HY Markets | Wed Aug 09 17 04:18 ET

GOLD

Spot gold settled at $1,255.79 a troy ounce, the lowest in two weeks, as the market decided to give the greenback a vote of confidence after another solid local employment report, as the number of jobs' opening hit a record high in June. The figure came after a solid US employment report for July, and should keep the Fed in the tightening path, although no rate move is expected for September. The daily chart for gold indicates and increasing bearish potential, although further confirmations are required, as technical indicators are now hovering around their mid-lines, with diminished downward strength, whilst the price settled around its 20 DMA after briefly falling below the 100 DMA. In the 4 hours chart, the price settled below both, the 20 and 100 SMAs, with the shortest gaining bearish traction, in line with further declines, whilst technical indicators have managed to bounce within negative territory, still unable to re-enter bullish ground.

Support levels: 1,251.46 1,243.75 1,235.22

Resistance levels: 1,260.10 1,267.60 1,274.05

WTI CRUDE OIL

West Texas Intermediate crude futures settled at $49.10 a barrel, down for a second consecutive day, reverting early gains on news indicating that some OPEC producers increased their output in July, with crude oil exports from the OPEC reaching a record high in July mostly due to Nigeria and Libya exports, both exempt from the agreement to limit production. Further weighing on the commodity were news showing that Libya's biggest oil field, Sharara, came back online after a short interruption on Monday. Ahead of the release of US stockpiles data, the commodity remains within a consolidative phase below the key 50.00 level, with the daily chart showing that technical indicators are retreating within positive territory, as the price remains trapped between its 100 and 200 SMAs. In the shorter term, and according to the 4 hours chart, the technical stance is neutral-to-bearish with the price a few pips below a directionless 20 SMA and technical indicators heading modestly lower within neutral territory.

Support levels: 48.50 47.90 47.20

Resistance levels: 49.65 50.20 50.85

DJIA

Having struggled around their opening levels for most of the day, US indexes finally turned south and closed in the red, amid a stronger dollar, and with healthcare and material stocks leading the way lower. The Dow Jones Industrial Average turned red after nine record closes, settling at 22,85.34, down by 33 points, while the Nasdaq Composite shed 13 points to 6,370.46. The S&P closed 6 points lower, at 2,474.92. Within the Dow, Apple was the best performer, adding 0.86%, followed by Chevron that added 0.61%. Leading decliners was El du Pont, down 0.84%, followed by Merck that shed 0.82.%. From a technical point of view, the daily chart shows that the index remains far above all of its moving averages that remain bullish, while technical indicators began correcting lower, still within overbought territory. In the 4 hours chart, the index settled a few points below its 20 SMA, whilst technical indicators have extended their declines within positive territory, now about to enter negative territory, supporting a bearish extension for this Wednesday that anyway will be seen as corrective after the latest record rally.

Support levels: 22,055 22,001 21,967

Resistance levels: 22,055 22,080 22,137

FTSE100

The FTSE 100 continued advancing this Tuesday, up 10 points to end at 7,542.73, not far below its previous record close of 7,547. A weaker Pound kept mood high among local investors, even despite earnings reports were not that encouraging. Paddy Power Betfair led decliners for a second consecutive day, down 4.11% after the bookmaker said it had suffered from "adverse sports results" in recent months, followed by InterContinental Hotels Group, down 3.99% on the day after reporting a slowdown in revenue growth. Taylor Wimpey, on the other hand, was the best performer, adding 1.93%. The index retreated in after hours trading following a late decline in US equities, heading into the Asian opening around 7,514, and with the daily chart showing that technical indicators turned lower within positive territory, as the index remains above its moving averages, these lasts, limiting chances of a steeper decline. In the 4 hours chart the index is also holding above all of its moving averages, with the 20 SMA retaining a strong bullish slope, yet technical indicators have turned sharply lower from overbought levels and are currently approaching their mid-lines, suggesting the index may extend its decline this Wednesday.

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

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

DAX

European equities trade mostly in the red, but the German DAX managed to shrug off the negative tone and settled at 12,292.05, up 35 points or 0.28%. Mood was undermined by poor Chinese and German trade data, as despite both economies presented wider-than-expected surplus, a decline in exports and imports triggered an alert. Helping European indexes to recover ground was EUR's weakness at the end of the session. Within the DAX, Continental was the best performer, adding 2.12%, followed by E.ON, still on the positive track and up by 1.91%. Banks gave back their Monday's gains, with Commerzbank leading decliners, down 1.29% and Deutsche Bank ending the day 0.58% lower. The index retains a negative tone according to the daily chart, as a bearish 20 DMA keeps capping advances, whilst technical indicators remain within negative territory, although lacking directional strength. In the 4 hours chart, the index settled above a horizontal 20 SMA but still below bearish 100 and 200 SMAs, whilst technical indicators also lack directional strength, but stand above their mid-lines.

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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