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Gold and Oil Markets Report – 6 Jun 2011

A guest post written by DAR Wong

Gold

Gold prices generally traded in down trend last week but reversed on Friday after the US jobs data showed lesser growth. We reckon the market is well resisted at 1546.00 levels with persistent selling interest in markets. Our supports are identified at 1512.00 levels if the market slides down in coming week. Look out for USDX trend that is inversely to the Gold’s direction.

Silver

Silver prices were strongly suppressed at 38.83 resistances and turned down. We foresee the market may be guarded with immediate resistances at 37.50 regions in coming week while a slide is possible. The support is pretty tough at 34.40 levels that may be seen with much buying interest. Market is still slacked after many global investors flight off due to recent margin raise in Chicago Mercantile Exchange.

Crude Oil

WTI Crude prices have been hovering around 100.00 benchmarks while trying to gather new strength for next move. Basically, the market was affected dollar policy and concerns in global supply from Arab countries. We reckon the trend will hold well above 98.25 regions and continue to consolidate at 103.00 regions again. There is much potential to see high prices in near future if then bulls charges above 103.00 resistances. Abandon your long-view the market violates and settles below 98.25 regions.

Crude Palm Oil

CPO June contract touched last week’s low 3350 and rebound to close at 3421 for weekend. This week, we foresee a strong resistance to act at 3465 levels with more prone to decline in weekly chart. On the downside, 3350 supports still persist well in case the market sinks to these regions again. Abandon your short-view if the bullish trend spikes above 3465 in lieu of trying higher at 3600 levels!

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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2 Comments to Gold and Oil Markets Report – 6 Jun 2011

  • iHayyo's Gravatar iHayyo
    June 6, 2011 at 5:34 PM | Permalink

    Dear Dar Wong,

    As you know this is a precious metal (Gold) which means when you talk about it at least it should be as a Long not as an Short… I respect you analysis but when you look to the PM Monthly chart you can see what I am talking about… Even if it reached the 1512 it will always be a Long for PM, take in mind all the actions that is happening around the world and the weakness of the Dollar is making all investors go for Gold and not Silver specially after lifting the Margin on it…

    Regards
    Ammar Saleh

  • June 7, 2011 at 11:22 AM | Permalink

    Ammar,

    I’ll answer your questions in more broad-base angles because trading is a game against market and not being personal.

    1) No one is totally right or wrong but trading is based on higher probability of winning over long term persistence. We are giving an overall view in the coming week based on technical outlook only, but this may be subject to fundamental changes midweek. Hence, a more accurate follow through will be visiting our daily update on Facebook or via our APSRI traders forum.

    2) Usually, people who disagree with my view are those who are sitting opposite to my outlook. Then again, it is not about who is more accurate but experience of overall projection and risk management are keys to survive and not pinpointing at others.

    3) Gold has reached the current top with strong resistance at 1546 last Friday after US payrolls. I also wrote on Monday’s Facebook update that market will likely reach 1555 – 1560 before turning down. Though we are still holding long view until 3rd quarter, we expect the market to do inner waves with some draw downs. However, I personally think the market will only do new high after mid June after US announces its decision of sizes of new QE and not taking a bet now that gold will be very, very bullish!

    4) Margin trading is about taking a long term view over 6 months, then cut down to 1-2 months outlook, then move into the daily trend by taking an entry from extreme end. Exact trading will be gauged again through intraday time scale. My report basically suggested a trend from 1512 to 1546 this week, but not staking a bearish trend over long term. Hence, you might have misinterpreted my vibes of reading report.

    5) When you said monthly chart of gold is very bullish. That is from your angle of analysis. I trade with wave counts and wave target prices. Though I foresee the bulls are still in force, there may be draw downs first, over coming weeks. Even if I’m wrong, I have prepared solutions immediately after that. By the way, just when you said monthly chart is very bullish, someone else could say mthly chart is very toppish and USDX chart has formed triple bottoms! Anyway, the purpose of stating this is not to argue but simply making you know the important of risk management rather than stressing who is in right trend.

    6) When many people are in right trend, they exit only after 1-2 days but when people are in wrong trend, they can sit from weeks to months! Therefore, I see no point to bicker who is in right trend when risk management is compromised.

    Thank you for your last comments. I appreciate that. May you have peace, fortune and happiness in trading.

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