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Gold and Oil Markets Report – 01 February 2016

A guest post written by DAR Wong and Chong HC

Gold traded higher last week as Crude also recovered above USD30.00 per barrel. Ironically, USDX also recovered at near to 100.00 benchmarks at 8-weeks high. The new policy announced by Bank of Japan on negative interest 0.1 percent shocked the market and weakened the Yen by pulling up USDX on Friday. However, we foresee this is only temporary effect and Yen will soon regain strength in coming 1-2 weeks.

Crude Oil

WTI Crude pricesreversed above USD30.00 per barrel for the weekend. This week, we have identified the resistance to be strong at 35.00 and huge opportunity for the trend to fall back. Global supply glut is still bothering the market sentiment and the recovery could be short-lived. We do not recommend holding long positions for too many days in the current up trend.

Gold

Gold prices reached 1128.00 highs and closed at 1118.00 for the weekend. The trend will likely moved in constriction but prone to down move this week as short-term correction begins. We have identified resistance to act at 1130.00 – 1135.00 regions while falling back to 1100.00 benchmarks is possible. However, do not miss out the opportunity to pick long entry on drawdown trend as we foresee yellow metal is begging to climb soon!

Silver

Silver prices traded lower last week after hitting 14.569 highs. This week, we reckon the market will trade lower for quick correction but will be supported at 14.000 levels. Technically, the trend is gathering strength to climb higher in coming weeks just like Gold instrument. Resistance is identified at 14.600 for time being but will be broken in coming weeks when the bulls charge up.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives moved sideways while the trend has formed double-top formation at 2500 regions. April contract closed at 2445 for the weekend. Moving towards Chinese New Year, we expect exports will slow down and prices will sink lower to 2380 as our target support. Resistance should emerge at 2480 areas in case of retracement in early part of this week.

Dar Wong

This post is contributed by OPF Guest Bloggers, DAR Wong and Chong HC

DAR Wong and Chong HC are the market strategists in APSRI on CPO markets. DAR has 26 years of trading and hedging experiences while HC trades for 7 years and now coaches institutional customers. They can be reached at www.traderpromaster.com

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DISCLAIMER: This post is written for general information only. The author, publisher and/or any third party involved in the distribution of this work assume no legal responsibilities and shall have no liability whatsoever for any direct or consequential losses, costs or expenses arising from the use of the information contained herein.

 






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