Daily Trade Gold/Silver/Crude Oil/Dollar Index

Commodities Market: Technical Outlook

Gold extended the gain to close at $1,340, up $2.74. Gold has formed a higher high and higher low that indicates potential for further upside. A break above yesterday’s high will extend the gain towards $1,362. However, any downside will find support at $1,336; where a fall below will initiate the corrective trend. The RSI and the MACD are heading up, supporting a positive view. We recommend investors to ‘Buy’ at lower levels, keeping stop loss below $1,336.

Positive movement continued for silver as it closed at $17.33, up $0.13. If the gain continues, the target will be at $17.77, however, any downside will find support at yesterday’s low of $17.18; where a drop below will target the 14-DMA at $17.00. The RSI and the Stochastic Oscillator have moved up, supporting a positive view. Investors are recommended to ‘Buy on dips’, keeping stop loss below $17.18.

Crude oil ended the session higher at $64.62, up $0.36. The current pattern suggests that oil is expected to consolidate at current levels. Meanwhile, a break above yesterday’s high will continue the uptrend with $66.05 and $68.44 as the next targets. However, a fall below $64.01 will kick off the corrective trend. The RSI and the MACD have improved, supporting a positive view. We recommend investors to ‘Buy on dips’, keeping stoploss below $64.01.

The USD index closed the session lower at 90.12, a loss of 0.46 points. The index is expected to revisit yesterday’s low of 90.03; where a fall below will open the way towards 89.61. However, any upside will face resistance at yesterday’s high of 90.66. The RSI and the MACD are heading down, supporting a bearish view. We recommend investors to ‘Sell on Strength’, keeping stop loss above 90.66.