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Gold and Oil Markets Report – 16 May 2016

A guest post written by DAR Wong and Chong HC

Gold and Silver prices traded in mild bearish sentiment after Dollar firmed up last week. WTI Crude resurges after weekly Crude inventories have been reduced by 3.4 million and support the demand for oil. Global attention is focused on U.K. Brexit in coming June as investor are worried this could trigger a new meltdown if U.K. opts out of European Union. Greece is preparing new spending cut plan for applying a new bailout from IMF in June.

Crude Oil

WTI Crude prices are now resisted at 46.50 regions after it closed with a double-top formation on Friday. This week, we foresee the trend may fall on higher probability with Gold prices since Dollar Index could be recovering. The range might be tight from 42.00 – 46.50 regions but breaking above 46.50 resistance will effectively reach higher at 48.00 levels.

Gold

Gold prices traded in small down trend but still uncertain in directional heading. This week, we reckon the prices will be capped below 1280.00 resistances with possibility to dive down for a testing at 1240.00 regions. However, abandon your short-view if the bulls pierce above 1280.00 levels. Overall trend in Gold demand is still moving uptrend over long-term despite going through a corrective drawdown now.

Silver

Silver prices pulled up on Friday as it closed at 17.10 ranges. Technically, the pattern is still bearish with resistance capped at 17.20 areas. This week, the bear may resume in southern direction and aim at 16.50 for consolidation. Jue like Gold, we target Silver to complete its correction in May and move back into uptrend in 2 weeks’ time.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives has been trading in flat pattern for past month. The market will roller to August contract as active delivery month this week. Demand for general agricultural commodity has been slow recently due to stronger greenback. This week, FCPO may trade slightly lower with possibility to decline below 2500 levels. Selling pressure will emerge if the demand rises above 2620 levels.

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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