Key Stock Indexes, Crude, Gold and Silver Markets Briefing
$DIA, $GLD, $SLV, $OIL, $USO, $CU
Commentary: “It makes total sense to take some money off the table,” El-Erian, the chief economic adviser at Allianz SE said Tuesday. “We’ve priced in no policy mistakes. We’ve priced in no market accidents, and we’ve ignored all sorts of political issues,” he said. In October, Mr. El-Erian said that he held about 30 percent of his own money in cash. Cash is an asset. PE
DJIA at 19941.96, -0.16% is trying to move up “slowly” in here. With the setting of the Holiday mood could see some range-bound movements within 20250-19750 region in the coming sessions. An eventual rise towards 20250-20500 is possible near term.
DAX at 11468.64, +0.03% is headed higher and could rise towards 1st resistance near 11610. Not that the 11610-11820 region is a resistance zone and could see an initial dip from these marks. For now, the index may continue to rise.
Nikkei at 19406.03 saw a dip from 19606 but while 1st support near 19258 holds expect a test of 19870 before coming off sharply. A correction towards 19250 and lower is possible in the medium term but for now we may expect the price movements to be range bound in the 19870-19258 zone.
Shanghai at 3134.18, -0.09% bounced sharply, as the support near 3100 is holding. It may move towards 3150-3175 over Thursday and Friday.
Nifty at 8061.30, -0.26% closed at 8060 the interim support Wednesday not falling toward 8000. In case the support at 8060-8056 holds, may see a pull back towards 8100 again over the next couple of sessions delaying a test of 8000 by a few more sessions. Overall the index is Bearish medium term. The broad 8300-7900 range may hold for a few more weeks.
Crude Oil, Gold, Silver & Copper Markets
The prior highs of Brent Crude at 54.63, and WTI Crude Oil at 52.67 are acting as good resistance marks near term and could keep prices low in here. Expect trade volumes to go down for a week as the Christmas Season often keeps the prices range bound. We may expect a sideways consolidation within 57-52 for Brent Crude and 54-50 for WTI Crude Oil near term.
Gold at 1131.09 holding well above support at 1120. A few more sessions may be spent in the 1120-1150 area before we see a sharp break North or South. A short bounce towards 1150-1170 is possible before breaking 1120 on the Southside. The preference is on weaker Gold prices long term.
Silver at 15.91 may remain range bound near term. While support at 15.80 holds, the price could be limited in the 15.80-16.50 area.
Copper at 2.4950 may consolidate at 2.45-2.75 medium term. While support at 2.45 holds expect a rise back towards 2.55-2.60 near term.