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Analysis | Commodity Technical Analysis | Written by HY Markets | Mon Sep 11 17 06:40 ET

GOLD

Spot gold closed Friday at $1,346.63 a troy ounce, up for the week, but flat on the day. The bright metal surged to 1,357.49, its highest since July 2017 on dollar's sell-off, but corrected lower ahead of the close on profit taking. The metal is up for third consecutive week, as geopolitical jitters coupled with US Fed´s speakers dovish comments about the economy and possible upcoming rate hikes. The commodity may be traded with a cautious stance these upcoming days and ahead of Fed's announcement, but the upside remains favored, as despite some possible relief upward corrections, there are no bases for a dollar's appreciation. From a technical point of view, the daily chart shows that technical indicators keep hovering within overbought territory, whilst the price is far above a firmly bullish 20 SMA, this last around 1,310.00, all of which supports the ongoing bullish trend. In the 4 hours chart, the price settled above a bullish 20 SMA, this last around 1,342.70, providing an immediate support, while technical indicators stand directionless within positive territory.

Support levels: 1,342.70 1,331.60 1,325.00

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

WTI CRUDE OIL

Crude oil prices plummeted on Friday to trim most of their weekly gains, amid news indicating that US refineries are recovering slowly from the destruction caused by Hurricane Harvey. Over 10% of US refinery capacity remained down, ahead of another batch of tropical storms hitting the country this weekend. West Texas Intermediate crude futures ended at $47.54 a barrel, after trading as highs as 49.40 mid-week. Additionally, the Baker Hughes report released on Friday shows that the number of active rigs drilling for oil fell just by 3, down to 756 for the week, somehow indicating that strong pumping will keep the market oversupplied. The daily chart shows that, after repeatedly failing to surpass its 200 DMA, the price plunged straight down to its 100 DMA, whilst technical indicators turned south, entering bearish territory, indicating that further declines are likely on a break below 47.20. In the 4 hours chart the price settled below its 100 and 200 SMAs, whist technical indicators stand near oversold readings, having barely lost their bearish strength, also supporting additional declines ahead.

Support levels: 47.20 46.60 36.10

Resistance levels: 48.10 48.70 49.40

DJIA

The Dow Jones Industrial Average managed to add 13 points on Friday to settle at 21,797.79, but the Nasdaq Composite and the S&P closed in the red, down to 6,360.19 and 2,461.43 respectively. Appetite for riskier assets among stocks traders was subdued ahead of the upcoming hurricanes that hit the US during the weekend, and fears of another missile test in North Korea. The weekend passed with the first having produced less damage that initially expected and with N. Korea quiet, which could lift market's sentiment at the beginning of the week. Within the Dow, Travelers led, up 3.98%, followed by Home Depot that added 1.10%. The technology sector was the worst performer, with Apple leading losers , down 1.63%, followed by Wal-Mart that shed 1.55%. The daily chart shows that the index closed right below its 20 DMA for a third consecutive day, while technical indicators aim marginally higher within neutral territory, not enough to confirm further advances but limiting chances of a steeper decline. In the 4 hours chart, the index settled between its 20 and 100 SMAs, while technical indicators turned modestly lower within neutral territory, in line with a longer term perspective.

Support levels: 21,785 21,740 21,707

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

FTSE100

The FTSE 100 closed the week at 7,377.60, down on Friday by 19 points, and almost 1.0% for the week, with plummeting metals' prices pressuring the mining-related sector. A stronger Pound, which surged to its highest in over a month, added pressure to the Footsie. BHP Billiton led decliners, as oil prices fell sharply, losing 3.77%, followed by Antofagasta that shed 3.72%. Anglo American, Rio Tinto and Fresnillo lost over 3% each. St. James's Place was the best performer, adding 2.15%, while banks enjoyed a quiet data, with Barclay's following, up 1.96%. The daily chart shows that the index remains lacking clear directional strength, still hovering around its 20 and 100 DMAs, having settled for the week below them, as technical indicators lost upward strength around their mid-lines. Shorter term, and according to the 4 hours chart, the risk is towards the downside, as the index settled below all of its moving averages, with the 20 SMA accelerating south and currently at offering a dynamic resistance at 7,382, as technical indicators hover within negative territory, with the RSI turning south around 42, anticipating some further slides for this Monday.

Support levels: 7,333 7,288 7,261

Resistance levels: 7,382 7,413 7,444

DAX

European equities closed little changed on Friday, easing at the end of the session amid fears over another missile test coming from North Korea and the hurricanes affecting the US Atlantic coast. The German DAX closed 7 points higher at 12,304.00, up anyway for the week, compliments to ECB's positive outlook of the local economy. ThyssenKrupp was the best performer, up 1.67% for the week, followed by Commerzbank, which added 1.04%. ProSiebenSat.1 on the other hand, led decliners, down 1.27%, followed by Bayer that shed 0.90%. From a technical point of view, the daily chart shows that the index maintains a modestly positive stance, trading above its 20 and 200 DMAs, but lacking momentum, as technical indicators head nowhere within positive territory. In the 4 hours chart, the index settled above all of its moving averages, despite having retreated from its weekly high, whilst technical indicators also consolidate within positive territory.

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

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

HY Markets
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