Daily Trade Gold/Silver/Crude Oil/Dollar Index

Commodities Market: Technical Outlook

Gold extended the gain to close at $1,255, up $11.23. Gold is expected to target the 200-DMA that is standing at $1,267, followed by $1,277. However, any downside will find support at yesterday’s low of $1,240; where a fall below will resume the downtrend. The RSI has improved and the Stochastic Oscillator has generated a Buy signal, suggesting higher price movement in the near term. We recommend investors to ‘Buy on dips’, keeping stoploss below $1,240.

Silver ended the session higher at $16.04, up $0.35. Silver is expected to target the 14-DMA at $16.24; where a break above will lead to further gain towards $16.48. However, any downside will find support at yesterday’s low of $15.65. The RSI and the Stochastic Oscillator have generated a Buy signal, supporting a positive view. We recommend investors to ‘Buy on dips’, keeping stoploss below $15.65.

Crude oil showed negative movement to close at $56.59, a loss of $0.80. Oil has currently formed a lower high and lower low that indicates potential for further downside. A fall below yesterday’s low will initially target $55.84, followed by the 50-DMA at $55.01. However, any upside will face resistance at $57.42 (14-DMA). The RSI and the MACD have moved down, supporting a negative view. We recommend investors to ‘Sell on Strength’, keeping stoploss above the 14-DMA.

The USD index posted a loss of 0.67 points to close at 93.38. The index has dropped below the 50-DMA and is expected to test support at the 14-DMA; where a fall below will initiate the downtrend with 93.09 and 92.41 in sight. However, any upside will face resistance in the range of 93.68-94.08. The RSI has moved down and the Stochastic Oscillator has generated a Sell signal, suggesting a negative trend ahead. We recommend investors to ‘Sell’ below the 14-DMA.