As the Stock Markets have been showing continued weakness through the week, we take a look at how three Commodities have been performing!
The weakness seen in the stock markets over the past week has helped to keep the prices supported but, we expect as the markets recover, we will see the gold prices come under some selling pressure. Through the course of the trading session Gold seemed to consolidate, with the bulls and bears taking breather from pushing the tape. Resistance can be seen at the 10 day moving average of 1,249 with support around 1,235. The close and doji formed yesterday reflects indecision in the movement. RSI is sitting at a healthy 41, reflecting that Gold is neither oversold nor overbought at this present time but has a room to run in either direction.
You would expect prices to follow that of Gold’s and today there was no divergence from that. As we have seen with Gold, the prices of silver have also steadily recovered on their march towards 17. We expect Silver could come under some selling pressure in this region so we may soon some retracement, however Silver breached 16.75 level and activated a bullish trend scenario on the intraday and short term basis. 17.10 and then 17.43 would be the first level. If this level can be breached this would signal an extended bullish bias to 18.35.
Therefore, the bullish bias will be suggested for today unless we see a break below of the 16.56 level and a hold there. It must be noted that the stochastic and the EMA50 current negativity might make the mission of achieving the suggested targets harder.
Expected trading range for today is between 16.70 support and 17.10 resistance.
WTI Crude Oil
Prices edged above $45 during the course of the day and continue in strength as WTI Crude Oil continued its recovery. A number of Buy signals are being triggered on the hourly and 5 hourly charts. ADX, Williams Oscillator and MACD crossover are all signalling buy in these time frames. ADX signals strength of the trend upwards, this combined with Bull/bear power, which also denotes strength of trend are both confirming a bullish bias to the upside. This in conjunction with Williams Oscillator which measures momentum and volatility confirms the BUY signal. Oil is 0.75% up for the day at the time of writing.