Key Stock Indexes, Crude, Gold and Silver Markets Briefing
$DIA, $GLD, $SLV, $OIL, $USO, $CU
Commentary: DJIA and DAX continues to maintain the post US Election rally, while Nikkei is trying to get on with them. Shanghai is testing important support near current marks, while Nifty continues to look weak near term. PE
DJIA at 19974.62, +0.46% has moved North showing signs of strength. The Trump Rally may not have ended, and the index is headed higher with some small interruptions. Expect a rise towards 20250-20500 in the coming sessions, as The Trump Rally continues.
DAX at 11464.74, +0.33% broke resistance at 11430.40. While The Santa Rally continues, expect a rise towards 11750-11800 near term. Bullish.
Nikkei at 19522.80, +0.15% should trade in the this range 19870-19260 for a week while the 1st support at 19258 holds. The 3-day candle show resistance near 19900-20000, and we could see some correction from there towards 19400-1900 medium term. USD/JPY may continue to trade sideways allowing Nikkei to rise in the near term.
Shanghai at 3121.60, +0.60% showed an intra-day low of 3084 Tuesday, breaking below the daily channel support at 3100, but bounced to close higher. Looking at the long term line charts, there is hope for a bounce from current marks. A rise towards 3150-3175 looks possible as the 1st support holds.
Nifty at 8082.40, -0.27% came down as expected, it could test the 8000 support Wednesday. A break below 8000 could push to 7900 near term. The channel on the daily candle is holding in here, and shows more room on the Southside at 7900.
Crude Oil, Gold, Silver & Copper Markets
The US Dollar (.DXY) Index saw a new high of 103.65 Tuesday last seen in December 2002, while it holds below the 104.0-104.5 resistance it would be difficult for Gold at 1134.84 to break below 1130-1120. The Bearish view for Gold is intact in the longer frame, we need .DXY to break above 104.50 to boost a deeper fall in Gold. Prefer sideways consolidation in the range of 1120-1175.
Silver at 16.104 is stable and may consolidate in the 15.8-17.0 area near term, but no major move expected in here.
Brent Crude at 55.48 and WTI Crude Oil at 53.54 are almost choppy in the broad 52-58 region (Brent Crude) and 49-54 region (WTI Crude Oil) respectively. We could expect the trade to continue in this region unless a sharp break on either side. Preference would be a break to the Northside, waiting for price confirmation before looking at more Northside action in here.
Copper at 2.5115 is testing 1st support at 2.45 in here. The broad range of 2.75-2.45 is expected to hold in here, and for that the price needs to bounce from current levels. While 2.45 holds, expect a rise back towards 2.60. A break below 2.45, shifts focus at 2.35, waiting for confirmation and looking at the price action near 2.45 now.