Key Stock, Crude, Gold and Silver Markets Briefing
$DIA, $DAX, $GLD, $SLV, $OIL, $USO, $CU
Commentary: News that the ECB may reduce its bond purchases and that the UK may start process for its extraction from the EU before March of Y 17 has shaken the market sentiments expanding volatility in almost all the asset classes. PE
DJIA at 18168.45, -0.47% is ranged in the 18000-18400 zone, unable to break North or South. Sharp selloff occurred at 18400 but the long term support at 18000 holds for now. Contraction may continue for a couple of sessions at the most before something breaks. There is a 50/50 chances for either way.
Dax at 10619.61, +1.03% has risen sharply and has come to test immediate resistance on the Northside. Note that the 10600-10800 region is Key resistance which is likely to hold in the longer term. May see some contraction in price movements within the 10200-10600 range medium term.
Nikkei at 16830.22, +0.57% moved up a bit and could now have action to the Northside towards 17000 where it could see some rejection and fade towards 16200.
Nifty at 8769.15, +0.36% headed towards resistance at 8800 on the daily and in case this breaks to the Northside, rejection could come at 8850-8900, 8800-8900 is a Key resistance zone and if it holds, consider a sharp fall towards 8600.
Crude Oil, Gold, Silver & Copper Markets
News suggests some reasons for a sharp movement in almost all the markets Tuesday:
- The ECB may scale back its EUR 80-B bond purchases a month before its scheduled March 2017
- The UK government said that it would start the process to extract itself from the EU no later than March
- Increased of US Fed rate hike in December.
- Tensions over the US elections
Gold at 1272.46 fell sharply yesterday on news from the ECB and the UK . A sharp decline below Key support at 1300 led to a breakout to the Southside. Look at the 3-day charts, the resistance marks held and could indicate a fall towards 1250-1200 in the medium term before again retracing back towards 1300. Note: there could be some immediate support near 1270 which needs to break to target 1250.
Silver at 17.95 fell to channel support near 17.75, if that holds near term, price could rise back to 18.50. a break to the Southside could happen and then to a fall in the coming sessions.
Brent Crude at 50.76, and WTI Crude Oil at 48.61 rallied towards targets of 52.50 and 50 respectively. The break of medium term resistance on the Northside may indicate increase in upward momentum and the rally could continue towards 53 and 52 on the Northside before sharply retracing South again.
Copper at 2.1735 may have immediate support near current marks but taking a look at the 3-day candle chart, 2.20-2.25 could be major resistance with potential to push prices sharply towards 2.15-2.10 medium to long term. A rise from current marks could drive the Red metal to 2.25 in the near term.
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