Key Stock, Crude, Gold and Silver Markets Briefing
$DIA, $DAX, $GLD, $SLV, $OIL, $USO, $CU
Commentary: News has brought in some volatility in the stock indices. Mariano Rajoy, Prime Minister of Spain is set to form a new government, after the main opposition party, the Socialists, voted Sunday not to block his re-election, ending the 10-month political deadlock in Spain. German PMI also came in positive yesterday. This has boosted a rise in DAX at 10761.17, +0.47%, but note that there is a resistance at 10800 (highs seen earlier in August 2016 and September 2016. After making an intra-day high at 10820, the index has come off but in case it sustains above 10800 it could target 11000.
The Merger and Acquisition of B/E Aerospace by Rockwell Collins, Scottrade by TD Ameritrade aided the DJIA at 18223.03, +0.43%, as news headlines report. But overall the index has stuck to the upper limits of the 17800-18300 region and may see some price contraction near term. A fall below 18000 is needed to confirm a target of 17800 medium term.
Nikkei at 17341.15, +0.62% may test resistance near 17400-17500 from where a short dip is possible. Failure to come off from there could take it higher towards 17800.
Shanghai at 3124.95, +0.11% dipped after a sharp rise Monday boosted by the PBOC who increased the RMB Yuan to 6.7303. There could be some resistance near 3150 then a corrective dip is possible.
Nifty at 8708.95, +0.18% moved up to test the resistance near 8700, but may come off Tuesday. Also news of removal of Cyrus Mistry from the TATA group could be negative for the stocks, could see a fall towards 8600 or lower in here.
Crude Oil, Gold, Silver & Copper Markets
Commentary: Commodities are stable and could be up for a sharp movement in here. PE
Gold at 1264.88 is trapped in the 1260-1275 zone, both being 13-Day and 21-Day MAs holding the prices to consolidate. This may continue over Tuesday and Wednesday to see a sharp break.
Silver at 17.6290 is also stable and could move up slowly in the near to medium term.
Brent Crude at 51.30, and WTI Crude Oil 50.39 are almost stable near Monday’s marks and could see some rise towards 54 and 53 respectively. The Northside potential is open as long as 1st support near 51.00-50.70 for Brent Crude and 49.80-50 for WTI Crude Oil holds. There could be some sideways movement before a sharp corrective fall medium term.
Copper at 2.1105 has risen in line with expectation and could test 2.125-2.15 near term.