Gold and Oil Markets Report – 22 July 2013
A guest post written by DAR Wong
Last week, the FED Chairmen Ben S. Bernanke said he does not foresee imminent withdrawal of stimulus despite market rumors of tapering it. Dow Jones Average Index climbed to double-top at 14,550 regions after his remarks while Gold and Crude prices remained strong. Both the U.S. and U.K. economy have shown recovery in job markets while consumer prices are firmer. The U.K. National Institute of Economic and Social Research estimates Gross Domestic Product (GDP) rose 0.6 percent in the quarter through June.
WTI Crude prices closed at 107.87 levels for the weekend while showing sign of possible reversal. Crude inventories have been shrinking for past few weeks from EIA agency. Technically, it may show some wind-down in buying interest but beware of further ascension to 110.00 – 112.00 targets if the supply continues to contract on coming Wednesday’s report. We reckon the support will emerge at 104.50 areas and the market will likely trade from this support to 109.00 levels as immediate resistance if the bulls could not break above aforementioned hurdle.
Gold prices are supposed to move in tandem with Dow Jones Average Index (DJIA) now but dilemma of dawdling at 14,550 double tops also deter the yellow metal to climb further. This week, we predict the Gold prices will observe 1300.00 immediate resistances if it could bypass here and climb up to 1340.00 targets. However, failure to do so and staying sideways from 1270.00- 1300.00 ranges is sign of imminent bearishness as this could land on 1240.00 targets again
Silver prices has made flat-top pattern at 20.255 regions and closed below 20.000 benchmarks on Friday. The market may continue to consolidate from 18.600 to 20.255 ranges until it breaks out of this constriction. Pay attention to the Gold trend for leading Silver prices in coming week as fundamental factors will play important role. From technical outlook, the market may be more prone to be drawing down as sign of demands drop. Abandon your short-view if the bulls pierce above 20.255 resistances.
Crude Palm Oil
Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed at 2257 in its October delivery as market has been trading sideways. The trend managed to find the support at 2222 last week as we forecast and the topside has been capped at 2300 resistances. This week, we foresee the trend may be suppressed at 2330 – 2350 regions if market recovers. However, beware of breaking below 2220 ultimate supports if Crude prices begin to fall. This could be disastrous in FCPO as going below 2220 might initiate more panic selling!
This post is contributed by OPF Guest Blogger, DAR Wong.
Wong is the founder and Principal Consultant of PWForex.com and holds a professional qualification in NASD series 3 and 5 approved by National Futures Association (USA).
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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