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Gold and Oil Markets Report – 27 October 2014

A guest post written by DAR Wong and Chong HC

Crude prices continue to hover in weakness around 81.00 regions at weekend closing as Crude inventory rose to 7.1 million barrels in last week’s EIA report. Gold prices slowed down in demand before the weekend as profit-taking appeared. Dow Jones benchmark shows strong recovery throughout whole week as short traders rushed into market to take profits. China and German manufacturing PMI helped to stabilize the market into positive sentiment after mid last week when both indicated recovery above median forecast.

Crude Oil

WTI Crude prices still seem to be strongly supported at 80.00 – 80.50 grounds though the market sentiment traded in weak demand last week. Moving forward, we still adhere to our technical view of expecting the range to move from 80.00 – 85.00 regions as short-covering may arise soon. However, beware of the bears penetrating below 80.00 levels as this may lead a new selling euphoria in the market. Pay attention to USDX trend and remarks from Saudi Arabia as indication to move Crude prices.

Gold

Gold prices fell off 1250.00 tops last week and settled at 1230.00 regions for the weekend. Technically, we reckon the market will be resisted at immediate 1240.00 in this coming week while 1250.00 still serves as the ultimate selling pressure benchmark. In our opinion, breaking below 1225.00 immediate supports will be very prone to fall further to 1210.00 as our bottom target if market sentiment turns bearish. Pay attention to the global stock indexes as inverse correlation to major commodity trends.

Silver

Silver prices traded sideways but still settled in weakness for the weekend closing at 17.200 levels. The market is indecisive as trading activity has become scarce compared to yellow metal. This week, we reckon the range may trade from 17.00 – 17.50 regions while direction may be prone to travel southwards. Hence, it will be better to plan short entry from pull-up retracement in early part of coming week with controlled risk management.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed higher on Friday as soft commodity prices recovered last week. January contract closed at 2180 levels but open interest fell. This week, it will be a challenge to watch the bulls cross above 2200 levels and stay above this benchmark for remaining bullish till 2250 regions. However, penetrating below 2150 will initiate new selling pressure and re-test 2100 supports.

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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