Key Stock Indexes, Crude, Gold & Silver Markets Briefing
$DIA, $GLD, $SLV, $OIL, $USO, $CU
The US market will open again Tuesday after a long holiday weekend.
Commentary: The nervousness of the investors ahead of President Elect Donald Trump’s Inauguration this week has failed to trigger any significant correction in the markets to date, keeping the medium term trend Bullish, but the markets need a move to avoid any strong profit taking in here. PE
DJIA at 19885.73, -0.3% has been trading sideways in the narrow range of 19700-20000 for the last 5 wks+, which is not a sign of reversal despite all the worries over the rally continue to be sited in the financial media. The medium term Resistance at 20200-250 should be kept in sight, any Southside reversal possibility will emerge only on a break below support at 19700-500.
DAX at 11554.71, -0.64% is following the consolidation of the US market trading in the range of 11500-700 with no directional bias. The medium term trend remains up as long as the index stays above 11400 and a new high can be seen by the end of the week if DJIA breaks North.
Shanghai at 3097.35, -0.20% made a low at 3044 and bounced sharply. While the trend remains down, the Southside may be limited to 3000-2980 this week.
Nikkei at 18981.57, -0.60% trades below the support at 19000, but the chances of a Bullish turnaround can not be negated as long as it trades above 18750. But, a break below 18750 could bring a 2-3% decline in here.
Nifty at 8400.35 is vulnerable to some profit-taking in the run up to the budget as long as it stays below 8443, could see 8300-8100. Caution says that Nifty can fall deeper towards 8000-7800 in the medium term.
Crude Oil, Gold, Silver & Copper Markets
Gold at 1205.30 is just under the resistance of 1207-10 which must be overcome to extend the run to 1215-20. Gold-Euro (1135.60) is facing major resistance around 1135-37 with 1152 sitting at the higher marks. With USD/JPY (114.06) not too far away from support of 113.50, the chances of a correction setting in for Gold from the current levels can not be ignored.
Silver at 16.8230 is stalled around the resistance at 16.90. Failure to rise above 16.90-95 may then push it down to 16.00.
Brent Crude at 55.78, and WTI Crude Oil at 52.52 are showing no inclination to move and may stay quiet till the US inventory data release Wednesday. The broader range of 50-55 for WTI Crude Oil and 53-58 for Brent Crude may continue for a few days more before we see a clear trending move.
Copper at 2.6340 corrected to 2.65 and beyond in line with expectations and the correction may get deeper towards 2.60 or even 2.50 unless there is an immediate rise above 2.70 in here.
Have a terrific week.