Commodities Market: Technical Outlook

Commodities Market: Technical Outlook

November 06, 2017 

Gold closed the session lower at $1,269, a loss of $6.21. The current formation is an Engulfing Bear, which indicates potential for further downside. The downside target remains intact at the 200-DMA standing at $1,261; where a fall below will target $1,242. However, any upside will face resistance at $1,277 (14-DMA). The RSI and the MACD are heading down, supporting a bearish view. We recommend investors to ‘Sell on Strength’, keeping stoploss above the 14-DMA.

Silver posted a loss of $0.28 to close at $16.81. Silver has currently dropped below the 14-DMA which will now restrict upside at $16.94, followed by the 200-DMA at $17.16. However, a fall below Friday’s low will extend the decline towards $16.31. The RSI and the Stochastic Oscillator have shown weakness, supporting a negative view. We recommend investors to ‘Sell on Strength’, with risk defined above the 200-DMA.

Crude oil extended the gain to close at $55.80, up $1.02. Currently, oil has formed a higher high and higher low that indicates potential for further upside. The upside target remains intact at $56.52, with a chance of later extending towards $57.91. However, any downside will find support at Friday’s low of $54.52. The RSI and the MACD are moving up, supporting a positive view. We recommend investors to ‘Buy on dips’, keeping stoploss below $54.52.

The USD index ended the session higher at 94.81, up 0.21 points. The index is expected to revisit Friday’s high of 94.91; where a break above will resume the uptrend. However, any downside will find support at 94.19 (Friday’s low); where a fall below will extend the decline towards 94.01 (14-DMA). The RSI and the MACD have shown improvement, suggesting a positive trend ahead. We recommend investors to ‘Buy’ above 94.91.