Key World Stock Markets Briefing
$DIA, $DAX, $GLD, $SLV, $USO, $OIL
Disappointment over the central banks’ actions in the last week resulted in the markets’ risk off stance and a certain amount of selloff. The search for a new trigger is on but nothing significant is seen just now.
DJIA at 18313.77, -0.49% is seeing some profit taking that so far has not disturbed the uptrend line. The major support is at 18200-18000, a mark there could trigger a drive North to target of 18900-19000. We will see if the dip brings in buyers. Just now the Sept mini futures are trading flat to unchanged with a Bearish bias at 3:13a EDT
Dax at 10144.34, -1.80% is facing a major selloff from the higher marks as expected and the break below 10200 signals a possible retesting of 9900.
Nikkei at 16249.97, -0.86% is retesting the lower end of the range of 16200-17000 as JPY at 101.24)rallied above the resistance at 102. Despite this current decline, the Northside possibilities cannot be negated as long as the index manages to end the correction above 15800. Consolidation possible for a few days inside the range of 15800-16800.
Shanghai at 2973.55, +0.08%)is trading inside the range of 2920-3000 as expected and this sideways move may continue for the rest of this week.
Nifty at 8622.90, -0.16% hides the struggle of the index during Wednesday’s session as it failed to rise above 8700. The uptrend remains intact above 8575-50 for now, but expect to see some profit taking in the range of 8600-8800.
Crude Oil, Gold & Silver
The Crude Oil markets may weaken further but precious metals show an inclination to trade sideways for the next few sessions.
Gold at 1348.87 is gradually building a range in the 1310-1370, but if the risk appetite improves in the near to medium term, it may spend some time in this range. It may trade sideways in the range of 1325-55 for the next 1-3 sessions.
Silver at 20.39)is back into the range of 19.50-20.50 after marking 20.70. Now it may be stuck in the elevated range of 19.90-20.70 for a few sessions before the next trending move.
Brent Crude at 42.34 is getting closer to my target at 40.50.
WTI Crude at 40.15 is not too far away from my 1st target at 39.00. Another 3-4% decline from the current marks may hit the targets where expect some short covering to happen.