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Gold and Oil Markets Report – 19 May 2014

A guest post written by DAR Wong and Chong HC

Gold failed to break above 1310.00 resistances last week amid stronger Dollar trend. Crude inventories rose 900 barrels and above consensus that suppressed the oil prices weaker towards weekend. European Central Bank President Mario Draghi reiterates his opinion on injecting stimulus in coming June and favors weaker euro to expedite recovery. Dollar has been strengthening against Euro and Pound though it softens against yen as counter balance. Market will be watching China’s PMI data on coming Thursday to decide the market trend.

Crude Oil

WTI Crude prices traded in lighter demands after mid last week. the market will be prone to test 100.50 supports in coming week if Dollar rise further and Ukraine tension eases. In our opinion, the market could be ranged from 101.50 to 103.00 regions while breaking beyond either side is a sign of new direction. Technically, we favor more to shorting as breaking below 101.50 supports might reach lower at 99.50 grounds.

Gold

Gold prices closed at 1293.00 regions for the weekend amid some liquidation. The market may be prone to decline further if the Dollar rises higher in coming week. Technically, we reckon the resistance will stay resilient at 1300.00 – 1305.00 regions while the bears might emerge anytime to drive the prices lower at 1270.00 levels as our first target. Beware of breaking beneath 1270.00 supports as the unexpected down move might reach 1240.00 areas.

Silver

Silver prices have turned bearish on Friday after it settled at 19.326 levels. This week, the market is seen with resistance emerging at 19.500 regions with high potential of drilling down in bear trend. Technically, we expect the trend to wind down at 18.900 regions while entailing the yellow metal on softer sentiment. Abandon your short-view if the market pierces and settles above 19.500 resistances.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed higher after exports rose. Active month was rolled over to August delivery and settled at 2580 on Friday. The market is still hovering sideways after it reached 2627 last week. Moving forward, we reckon the trend may fall this week if the demand fails to pierce above 2620 resistances again. Downside support is seen at 2550 as we expect the prices to trade lower. Breaking below 2550 supports will aim at 2500 as next ground support.

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 24 years of trading and hedging experiences while HC trades for 6 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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