Commodities Market: Technical Outlook

Commodities Market: Technical Outlook

November 14, 2017

Gold ended the session higher at $1,278, up $2.70. The current pattern suggests that gold is expected to consolidate at current levels. Meanwhile, a fall below yesterday’s low will continue the downtrend with $1,263 and $1,242 in sight. However, a break above yesterday’s high will extend the gain towards $1,293. The indicators are mixed, supporting a neutral view. We recommend investors to ‘Sell on Strength’, keeping stop loss above $1,280.

Silver posted a gain of $0.17 to close at $17.03. The current formation is an Engulfing Bull which indicates a positive trend ahead, though a confirmation is required. Meanwhile, the 50-DMA and the 200-DMA will provide resistance in the range of $17.11-$17.15; where a break above will confirm the positive view. However, a fall below $16.81 will continue the downtrend with $16.31 in sight. We recommend investors to ‘Buy’ above the 200-DMA.

Crude oil closed the session lower at $56.85, down $0.18. Oil has currently formed a lower high and lower low that indicates a corrective trend ahead. The downside target is established at the 14-DMA standing at $55.37, however, a break above yesterday’s high will invalidate the corrective view. The RSI and the MACD are moving down, supporting a negative view. We recommend investors to ‘Sell on Strength’, keeping stoploss above $57.33.

The USD index witnessed a range bound session to close at 94.38. The index is currently trading below the 14-DMA that will restrict upside at 94.48; where a break above is needed to refresh upward momentum. However, a fall below 94.29 will continue the downtrend with 94.10 and 93.80 as the downside targets. The Stochastic Oscillator and the MACD are heading down, supporting a negative view. We recommend investors to stay sellers below the 14-DMA.