Gold and Oil Markets Report – 20 October 2014
General commodities stayed resilient last week as central banks worldwide reiterated stimulus or lower interest rates to sail through economic recovery. Gold tried hard to test 1250.00 resistances while Crude stays above 80.00 floor supports. EIA reports the weekly crude inventory grew 8.96 million barrels above forecast and put pressure on energy prices amid small technical recovery. USDX has been trading in sideways touching 84.00 supports amid some selling interest and manages to support commodity prices.
WTI Crude prices are supported at 80.00 levels while market closed at 82.85 for weekend. Technically, we reckon the resistance will be very strong at 85.00 levels as market will be trading from 80.00 – 85.00 ranges. However, beware of overboard short-covering in case the buying sentiment breaks above 85.00 and reach 88.00 regions. Crude prices have become very sensitive for past 2 months as OPEC countries have been increasing supply and IMF has called for global slowdown.
Gold prices touched almost 1250.00 highs last week and settled at 1238.00 regions for the weekend. This week, we foresee the trend might test into 1250.00 – 1255.00 highs before slipping back. Downside support is seen at 1215.00 areas. In summary, we reckon the range will thread from 1215.00 – 1255.00 while market will be more prone to shorting from pull-up retracement.
Silver prices trade in small range amid sideways last week. Little interest is seen in market. This week, we expect the trend to be resisted at 17.800 in case of some buying interest. In fact, there may be some selling interest after mid week if Gold cannot hold above 1250.00 levels. If Silver slides, we foresee the bears will drive down at 16.600 as our next support regions.
Crude Palm Oil
Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed lower on weekly basis as market rolled to new active month in January delivery. Some buying interest was seen on Friday but need further observation to confirm bullish recovery. January contract closed at 2139 levels as open interest dropped. This week, we maintain our bearish outlook while resistances cap at 2150 levels. Going down will aim at 2050 once it breaks 2100 immediate supports.
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
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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