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Gold and Oil Markets Report – 6 October 2014

A guest post written by DAR Wong and Chong HC

Commodities in Gold and Crude prices plunged after US shown better growth in payrolls in September. Gold erases the yearly gains since January while Crude broke the USD90.0 supports amid higher global supplies. In October, Crude may make its biggest slump in more than 2 years after Saudi Arabia signaled its willingness to start a price war with other OPEC members. The push-down on commodities prices is further aggravated by rising USD Index trend and recovering stock prices.

Crude Oil

WTI Crude prices have broken down below 91.00 strong supports and turned this price band into resistance now. This week, we expect the market to tease around 90.00 benchmarks initially but the emergence of new selling trend will easily take the trend down to 86.00 as our next targets. Pay attention to the OPEC fundamentals that continual price war might likely drive the prices to below 80.00 in October.

Gold

Gold prices thrashed the 1200.00 bottoms and erased all the gains from 1388.00 tops made in 2014. The market is prone to decline further in October in-lieu of rising Dollar. Technically, we expect the market to be capped under 1210.00 resistances in coming week while driving at 1180.00 targets will be our prediction. In our opinion, yellow metal will probably eradicate all long positions in market before year-end before new demand will generate into early 2015 for potential rise. Stay alert and do not act stubborn for your mistake!

Silver

Silver prices closed lower at 16.810 on Friday after bear sentiment sank into market. This week, we expect the resistance will emerge at 18.000 regions in case of sideways correction. Technically, we reckon 16.500 levels will be strong support but the penetration below here may drive panic selling at 14.500 bottoms if Gold leads a new bear trend in metal markets.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives closed higher on last Friday. Recovery sentiment failed to pull through the bullish euphoria while resisted at 2210 levels. December contract closed at 2170 level and will face challenge to clear above 2210 resistances in order to resume uptrend. Technically, we shall stay observant of soybean trend that will influence FCPO prices. Immediate support lies at 2100 regions in case of drawdown.

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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