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Gold and Oil Markets Report – 23 May 2011

A guest post written by DAR Wong

GOLD

Gold prices stood still at 2 support benchmarks namely S1 – 1504.00 and S2 – 1486.00. With the downgrade of Greece on last Friday, an initial sell down was quickly reverted into bullish trend after investors realized the yellow metal as a hedge tool against uncertainty. This week, we foresee the bulls may attempt 1525.00 or even up to 1540.00 regions if the flight to quality continues. Breaking beneath 1486.00 will be bad sign for investors that may initiate new liquidation of Gold prices.

SILVER

Silver prices are still weak and suppressed by the high margins regulated by CME Group. The market may return to the 34.20 supports while threading in side way trend. Breaking above 35.38 may probably restart the bullish trend and follow Gold surge though Silver’s gain could be limited for the time being. However, we still favor to hunt for long trades at the bottoms on drawdown.

CRUDE OIL

WTI crude prices are going finish its channeling trend soon and make a breakout. We prefer to hunt for long trades at 98.00 regions with the risk management of it not piercing below 96.30 supports. The penetration above 100.50 resistances could begin the new surge in bullish trend in tandem with Gold prices. In our opinion, global investors are slowly coming back to Gold market while shifting the interest from Silver market.

CRUDE PALM OIL

CPO soared last week as we predicted and closed at 3390 for the weekend. Although we foresee a strong support has moved up to 3300 now, we would prefer to trade long from mid week onwards especially if the market returns to 3300 – 3350 regions. Breaking below 3300 benchmarks will also violate the EMA200 line that need abandon your long view. However, trading above this region has much potential to climb higher in near future.

 

Dar Wong

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).

 

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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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