Key World Stock Markets Briefing
$DIA, $DAX, $GLD, $SLV, $USO, $OIL
The BOE rate cut and fresh stimulus triggered muted reaction from the markets as these steps were widely expected.
US NFPs data to be released today may generate more volatility in the markets.
DJIA at 18352.05, -0.02% is trading in the narrow range of 18250-400 for the last 3 sessions but the US NFP’s data may produce a breakout from the range Friday. The support at 18200-18000 is expected to push the index towards our target of 18900-19000 by the next week.
DAX at 10227.86, +0.57% extended its corrective bounce for the 2nd day running, but the resistance area of 10280-320 may push it lower again for my target of 9900.
Nikkei at 16300.75, +0.28% saw a bounce from 15900 near Key support at 15800. This bounce has strengthened the possibility of consolidation in 15800-16800 area.
Shanghai at 2975.47, -0.23% is spending the 7th session running in the range of 2920-3000 with no directional guidance. Bias is Neutral inside the range.
Nifty at 8551.10, +0.07 marked a fresh low at 8520 in the last session and may consolidate in the range of 8520-8620 for 1-3 sessions before resumption of the near term downtrend.
Crude Oil, Gold & Silver
Precious metals may consolidate further but Crude Oil stands at a very Key juncture near term.
Gold at 1361.10 is trading in the range of 1335-70 as expected and may continue for another couple of sessions before any trending move is seen. A clear break above 1380 may bring 1410-30 into consideration but the probability of a successful breakout looks 50/50 now.
Silver at 20.35 has bounced off support at 20.10 with the probability of consolidation between 19.50-21.00.
Both Brent Crude at 43.85 and WTI Crude Oil at 41.51 are very close Key near term resistances at 44.00-50 and 42.00 respectively. This is the make or break point and the price action may turn out to be decider. A clear break above 44.00-50 may push Brent Crude towards 46 or even 48 and WTI Crude Oil towards 44-45. But, a failure in here may push them down to retest the recent lows. Wait and see.
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