Daily Trade Gold/Silver/Crude Oil/Dollar Index

Commodities Market: Technical Outlook

Gold adjusted its previous declines to close at $1,248, up $1.25. Gold is expected to revisit Friday’s low of $1,244; where a fall below will continue the downtrend with $1,228 in sight. However, any upside will face resistance at $1,252; where a break above will kick off the upward correction with $1,267 as the upside target. The Stochastic Oscillator and the MACD are heading down, supporting a bearish view. We recommend investors to ‘Sell on Strength’, keeping stop loss above $1,252.

Silver closed the session higher at $15.83, up $0.12. Despite a positive closing, silver has formed a lower high which indicates that the trend is still weak. Silver is expected to re-test resistance at $15.88; where a break above will initiate the upward correction with $16.51 as the next target. However, any downside will find support at $15.69; where a fall below will extend the decline towards $15.52 and $15.34. The indicators are mixed, supporting a neutral view. We recommend investors to stop selling above $15.88.

Crude oil extended the gain to close at $57.31, up $0.72. Oil is expected to re-test resistance at the 14-DMA; where a break above will resume the uptrend. However, any downside will find support at Friday’s low of $56.56. The RSI and the Stochastic Oscillator are heading up, suggesting a positive trend ahead. We recommend investors to ‘Buy’ above the 14-DMA.

The USD index failed to sustain its interaday high of 94.06 and slid to close at 93.82, up 0.08 points. A long upper shadow has occurred which in an uptrend indicates a bearish reversal, however, a conformation is required. Meanwhile, the 50-DMA will provide support at 93.65; where a fall below will confirm the bearish view. However, a break above 94.06 will invalidate the above view. We recommend investors to stay ‘long’ above the 50-DMA.