Key World Stock, Crude, Gold and Silver Markets Briefing
$DIA, $DAX, $OIL, $USO, $GLD, $SLV
Commentary: The Chinese market is at a major inflection point (point of a curve at which a change in the direction of the trend occurs), but all the other markets are trendless in here, waiting for the US Fed Chairwoman Yellen speech Friday from Jackson Hole, WY.
DJIA at 18481.48, -0.35% tested the lower end of the 13 day old range of 18450-700, but is overall unchanged. The range may see a breakout North or South Friday.
DAX at 10622.97, +0.28% still is trading inside the range of 10450-650 with no strong indication of breakout before Ms. Yellen’s speech Friday. Bias Neutral.
Nikkei at 16554.98, -0.25% saw another narrow range day in the band of 16350-650. The bias remains slightly Bullish, but must be confirmed with a rise above 16650.
Shanghai at 3062.66, -0.75% is at the make/break point now as it tests significant support of 3060-50. A swift bounce from this area would keep the Bullish scenario intact, but a break below 3050 threatens picture. Wait, Watch.
Nifty at 8650.30, +0.21% is consolidation in the contracting range of 8550-8700. Unless a break above 8700 is seen soon, the chances of a break below 8550 may go up, triggering Southside targets of 8400 or lower.
Crude Oil, Gold & Silver Markets
The collapse in volatility produced a contracting range for Gold at 1337.88 in 1330-60 in the last couple of weeks, which may resolve soon. No bias regarding the direction. Major support at 1310-00 and major resistance at 1365-75.
Silver at 18.92 continues trading in the range of 18.80-19.10 for the 3rd session running, unless a break above 19.20 is seen in the next couple of sessions, the chances of further decline towards 18.55-45 will be stronger.
Brent Crude at 49.52 bounced back towards 50.10 just as expected and now failure to rise above this swing high of 50.20 can push it down towards 48.00. The Bulls will take their chances as long as the price stays above the near term support at 48.75.
WTI Crude Oil at 47.55 overshot the target at 48.00 with a high of 48.33, but the chances of a retest of 46.00 cannot be ruled out, immediate support coming at 47.25-00.