Key World Stock Markets Briefing
$DIA, $DAX, $GLD, $SLV, $USO, $OIL
The global markets are trading in ranges instead of making any trending move.
For the Indian markets, the successful passage of the GST bill is positive, but most of that may have been already in the price.
An Inside Day pattern in the DJIA at 18355.00, +0.23% halted the mild decline going on for the last 2 weeks, which needs confirmation for a resumption of the major uptrend. The major support at 18200-18000 remains unchanged, as is the target at 18900-19000.
DAX at 10170.21, +0.26% paused after 2 days of sharp decline, but the Southside target of 9900 may be met in the next 2-4 sessions.
Nikkei at 16020.15, -0.21% is now closer to the major support at 15800 which must hold to keep any Bullish chances alive. As noted Wednesday, consolidation possible for a few days inside the wide range of 15800-16800.
Shanghai at 2968.54, -0.33% continues to trade sideways in the range of 2920-3000, as expected showing no immediate sign of breakout.
Nifty at 8544.85, -0.91% may open with a Gap celebrating the passage of the GST bill but it remains to be seen if the gains can be maintained. The break below 8575-50 has damaged the Bullish structure and now if the corrective bounces get rejected at the Resistance of 8580-90, then a fast decline to 8500 or even lower cannot be ruled out.
Crude Oil, Gold & Silver Markets
Crude Oil is seeing short covering in line with our expectations and the precious metals are correcting their recent gains.
Gold at 1352.81 has reversed from the year high of 1370 levels, but sees support around 1345-35 to consolidate in the range of 1335-70 for a few sessions.
Silver at 20.20 has also corrected, but much closer to its immediate support of 20.10. As it is not clear if the support will hold or not, wait for clarity.
Both Brent Crude at 43.30 and WTI Crude Oil at 41.18 bounced from their respective supports of 41.50 and 39.00 just as expected. Brent Crude needs a break above 44 and WTI Crude Oil above 42 to extend the bounce, and negate the immediate Southside possibilities in here.