Daily Trade Gold/Silver/Crude Oil/Dollar Index
Gold witnessed slight adjustment to its previous gains as it closed at $1,338, down $1.74. Gold is expected to revisit yesterday’s high of $1,342; where a break above will continue the uptrend with $1,362 in sight. However, a fall below $1,332 will kick off the corrective trend with $1,317 as the downside target. The indicators are mixed, signaling no clear trading view. We recommend investors to stop buying below $1,332.
Silver ended the session lower at $17.17, down $0.16. Silver is expected to re-test support at the 14-DMA standing at $17.05; where a fall below will initiate the downtrend. However, a break above yesterday’s high will extend the gain towards $17.77. The Stochastic Oscillator has improved, while the RSI has moved down, supporting a neutral view. We recommend investors to stay ‘long’ above the 14-DMA.
Crude oil showed negative movement to close at $63.75, down $0.87. The current formation is an Engulfing Bear, which indicates a corrective trend ahead, however, a confirmation is required. Moreover, the RSI and the Stochastic Oscillator have taken a downturn, supporting the above view. We recommend investors to ‘Sell’ below $63.32.
The USD index witnessed a range bound activity to close at 90.22. The current pattern suggests that the index is expected to consolidate at current levels. Meanwhile, a break above 90.56 (yesterday’s high) will kick off the upward correction. However, any downside will find support at 90.09; where a fall below will extend the decline towards 89.61. The RSI has improved, while the MACD is heading down, supporting a neutral view. We recommend investors to ‘Sell on Strength’, keeping stop loss above 90.56.
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