Key Stock Indexes, Crude, Gold & Silver Markets Briefing
$DIA, $GLD, $SLV, $OIL, $USO, $CU
Commentary: Equities are mixed in here: DJIA Shanghai and Nifty could trade lower near term while DAX and Nikkei look Bullish. PE
DJIA at 20855.73, -0.33%) is in the correction phase and could possibly extend towards 20750-20700 levels before bouncing back from there. In case 20700 breaks on the downside, we will have to be ready to see some more fall in the medium term towards 20500. But while 20700 holds, we remain bullish.
DAX at 11967.31, +0.01%) looks bullish for the near term. Immediate support seen near 11920 which if holds could take it higher towards 12100-12200; else a fall towards 11800 is possible before a sharp bounce is seen. Watch price action near current levels.
Looking at the sharp rise in the US-Japan 10 yr yield spread, we could see a rise in USD/JPY which could drive up Nikkei (19283.10, +0.15%) to higher marks at 19400-19600.
Nikkei is trading low and could re-test marks near 19000 before bouncing towards 19400-19600 marks. In that case the 21-MA seen on the 3-day line charts could act as a good support in here.
Shanghai at 3214.32, -0.81%) could be heading towards immediate resistance near 3250 and may not break above 3250 just now (we may negate the higher levels of 3275 that was mentioned yesterday). A small corrective dip from 3250 looks likely now.
Looking at the big sharp fall in Brent Crude, and expecting some weakness in the Indian Rupee, there could be some fall in Nifty (8924.30, -0.25%) today. A fall towards 8800 is likely within the next couple of sessions. That makes the resistance near 8970-9000 stronger now and could hold for some more time.
Gold, Silver, Copper & Crude Oil Markets
Gold at 1206 shifted into a new Bearish trading zone of 1128-1226. Remain Bearish while it is trading below 1226.
Silver at 17.25 is trading below 17.45. A new trading band has been formed between 15.70-17.75. Bias is Bearish while the Devil’s metal trades below 17.75.
Copper at 2.60 is hanging around Key support at 2.60. A close below that could open the way 2.53. The downward momentum has weakened some and Copper may consolidate between 2.55-2.60 for few more days before its next upward move.
Any increase in US Crude Oil inventory is Bearish for Brent Crude at 53.48, and WTI Crude Oil at 50.58. Wednesday, the inventory was 8.2-M+ bbl and Brent Crude and WTI Crude Oil both have fallen almost 5%. Next support marks for Brent Crude are 51.35 and 48.87, for WTI Crude Oil are 48.90 and 46.35.