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Analysis | Commodity Technical Analysis | Written by HY Markets | Fri Sep 08 17 04:52 ET


Gold prices regained the upside and settled at their highest since September 2016, with spot up to $ 1,349.32 a troy ounce, to finally stabilize around 1,345.00. The commodity followed the lead of the common currency against the greenback, both rising on the back of ECB's announcement, overall optimistic, and tepid US employment figures. Political uncertainty in the US remains high, despite some positive announcements over the debt ceiling these days, keeping gold buoyed. The commodity is moving with a bullish bias according to the daily chart, as the metal closed at its highest for the week and well above all of its moving averages, whilst technical indicators resumed their advances within overbought territory, with the Momentum currently at fresh multi-month highs. In the 4 hours chart, the price is also well above moving averages, while the RSI aims to regain the upside, currently around 68, although the Momentum lost upward strength, all of which favors the upside anyway, particularly on a break above 1,352.55, the immediate resistance.

Support levels: 1,342.40 1,331.60 1,325.00

Resistance levels: 1,352.55 1,363.40 1,372,90


West Texas Intermediate crude oil futures settled at $49.04 a barrel, marginally lower for the day amid a large increase in US stockpiles, according to the latest EIA report. The figures were shocking, but the market was expecting something like that after Hurricane Harvey shut down refineries in Texas, resulting in a limited reaction in oil prices. Anyway, crude stockpiles surged by 4.6 million barrels in the week ended September 1st, putting an end to a nine-week continued decline. Crude oil refinery inputs fell by 3.3 million barrels in the same period. The daily chart for the commodity shows that it remained below a bearish 200 DMA, but for little, while technical indicators have lost upward strength, but hold within positive territory, limiting chances of a steeper decline. In the 4 hours chart, the RSI indicator consolidates within overbought levels, the Momentum indicator turned sharply lower, nearing its 100 level, but given that the price remains near its recent highs and above its moving averages, the risk remains towards the upside, to be confirmed on an extension above 49.40, the immediate resistance.

Support levels: 48.20 47.70 47.15

Resistance levels: 49.40 49.90 50.40


Wall Street closed mixed, with only the Nasdaq Composite up for the day by 0.07%, to close at 6,397.87. The Dow Jones Industrial Average lost 21 points, and ended at 21,785.81, while the S&P finished pretty much unchanged, losing 0.02%, to 2,465.10, with the indexes weighed by weaker financial and consumer discretionary-related equities. Walt Disney was the worst performer, down 4.60% after its CEO gave a profit warning, while General Electric followed, down 3.85%. Morgan Chase finished the day 1.84%. Visa on the other hand, added 1.36%, leading winnersĀ“ list. The Dow's daily chart shows that the index failed on an attempt to surpass a modestly bearish 20 DMA for a second consecutive day, while the RSI indicator remains around 47 as the Momentum maintains its bearish slope within negative territory, in line with further slides ahead. Shorter term, and according to the 4 hours chart, the recovery was also halted by a bearish 20 SMA, while the index also settled below its 100 and 200 SMAs. In this last time frame, technical indicators have managed to recover some ground, but remain within negative territory.

Support levels: 21,740 21,707 21,663

Resistance levels: 21,845 21,891 21,932


The FTSE 100 closed the day 43 points higher at 7,396.68, with commodity and tobacco-related companies leading the way higher. An advance in European equities and easing risk aversion, backed the Footsie, alongside with a stable Pound. Tobacco companies rose after Imperial Brands announced it sold down some of its stake in Spanish logistics firm Logista, ending 2.80%. Fresnillo was the best performer among miners, adding 3.98%. Financials feel the hit after the ECB, with Royal Bank of Scotland leading decliners with a 1.39% loss. The daily advance barely affected the index technical outlook, as in the daily chart poses a neutral stance, hovering around its 20 and 100 DMAs, and with technical indicators aiming modestly higher around their mid-lines. In the 4 hours chart, the recovery stalled right below all of its moving averages, confined to a tight range which also indicate the absence of directional strength, while technical indicators lack directional strength, also standing within neutral territory.

Support levels: 7,367 7,333 7,288

Resistance levels: 7,413 7,444 7,482


The German DAX closed the day 82 points higher at 12,296.63, with all European indexes gaining amid upward revisions on growth forecasts coming from the ECB and an extremely moderate outlook to QE tapering. RWE AG led advancers, adding 3.53%, followed by Adidas that added 1.76%. Banks led decliners, with Commerzbank losing 1.73% and Deutsche Bank shedding 1.27%. The index maintained the positive tone after the close, heading into the Asian opening around July's highs above the 12,300 level. The benchmark presents a positive stance in the daily chart, having advanced further above its 20 and 200 DMAs, and with a major relevant resistance now at 12,448, the 100 DMA. In the same chart, technical indicators hold within positive territory, but with no directional strength, as the index stands some 50 points below its intraday high. Shorter term, and according to the 4 hours chart, the index settled above all of its moving averages, whilst technical indicators turned to consolidative mode near overbought readings, all in one, maintaining the risk towards the upside.

Support levels: 12,241 12,207 12,166

Resistance levels: 12,301 12,342 12,383

HY Markets


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