Key Stock Indexes, Crude, Gold & Silver Markets Briefing
$DIA, $GLD, $SLV, $OIL, $USO, $CU
Commentary: The FOMC Minutes Wednesday aided to losses in the US stocks. The unwinding of the $4.5-T balance sheet indicated in the minutes may lead to more rate hikes this year. Sharp rise seen in Shanghai Thursday while Nikkei seems to want to notch a fresh 4-month lows near term. PE
DJIA at 20648.15, -0.20% rose to 20887 Wednesday before coming off to close at 20648. As it is trying to move above 20800, and hold. Broadly look at the 20980-20400 range to hold near term A break on either side is the Key to decide on direction. For now sideways movement is expected.
DAX at 12217.54, -0.53% is trading above 1st support near 12200, if it holds may see a bounce towards 12400-12500, else a dip to 12100-12050 is possible next. Note: Resistance on the 3-day candle is holding well, and indicates a sharp dip near term.
Nikkei at 18597.51, -1.40% showed its 1st break out on the Southside from its broad sideways consolidation since 16 December. The 4-month sideways consolidation seems to have initiated a resolution to the Southside by breaking the Key support near 18650/18600. Should the index sustains below 18600, then see a fall towards 18200 ahead. Wait and watch for confirmations.
Shanghai at 3276.99, +0.20% rose sharply nearing 1st resistance near 3300, it might come off from 3300 near term.
Nifty at 9265.15, +0.30% is rising as expected and could test 9280-9300 in the next several sessions.
Gold, Silver, Copper & Crude Oil Market
Gold at 1253, and Silver at 18.27 are flat as they keep trading in the narrow ranges of 1237-1263 and 17.94-18.50, which may continue for a while. Global indicators are in favor of Gold and Silver too as a break below 99.70 for US Dollar (.DXY) Index (100.37) could cause good gains for Bullion. Buyers are taking every dip as a further opportunity for buying.
Copper at 2.66 found support at 2.65 near term. While 2.65 holds, a bounce to the interim resistance 2.70-72 can be seen. Only a clear move above 2.70-72, then 2.80 comes into view. Medium term 2.55-57 are strong support, and the chances of a close above 2.70 is increased.
Brent Crude at 52.82, and WTI Crude Oil at 50.86 have fallen from resistance marks 53.45 and 51.70. The trend is Bearish in the near to medium term. Any corrective bounce may face selling pressure.
Note: Crude Oil inventories are a rising concern whether the United States will remain the world’s biggest petroleum importer, which is a price supporting indicator, or if its rising production and glutted stocks lead to lower imports and trigger shipments to the rest of the world, which would weigh on energy markets worldwide.
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