Comex Gold Strong Rebound From The Immediate Support
The COMEX Gold staged a strong rebound yesterday, climbing above the 20-day SMA line to settle stronger at USD1,871.40.
The commodity initially started off at USD1.849.90 and moved sideways for most of the session. During the US session, strong buying interest lifted it towards the day’s high of USD1,874.40 – it closed at USD1,871.40.
The long bullish candlestick showed the bulls managing to find their footing at the USD1,830 support – they remain in control of the counter-trend rebound. The positive momentum will continue as long as the COMEX Gold trades above the 20-day SMA line.
After breaching the USD1,870 resistance, the bulls may set their sights at the next resistance, ie USD1,890. With the bullish momentum reigniting, we make no changes to our positive trading bias. Traders should stay with the long positions initiated at USD1,871.40 or 24 May’s close. To protect the downside risks, the stop-loss threshold is set at USD1,825.
The immediate support is stuck at USD1,830, with lower support marked at USD1,800. On the upside, the nearest resistance is pegged at USD1,890 – this is followed by the higher barrier of USD1,910.
WTI Crude: Bulls Regain Momentum
The WTI Crude regained its positive momentum from its intraday low yesterday as it closed above its immediate resistance – settling USD1.61 stronger at USD116.87.
The black gold started off lower at USD114.80 and then fell towards the day’s low of USD111.20 before strong buying momentum later kicked in. The commodity later rebounded strongly towards the day’s high of USD117.77 before retreating mildly at the close.
The bullish candlestick with “long lower shadow” suggests the buying pressure above the USD115.56 level has been renewed and is expected to persist towards the recent USD119.98 high. This is also supported by the improving RSI, which is pointing higher at the 62% level.
With that positive momentum, we stick to our bullish trading stance. We recommend traders maintain the long positions initiated at USD110.49 or the close of 10 May.
To manage the trading risks, the initial stop-loss threshold is set at the USD108.61 support. The immediate support is revised higher to USD115.56 – the high of 17 May – and followed by USD108.61, which was 25 May’s low. On the upside, the first resistance is at USD119.98– the high of 31 May – and then USD130.50, ie the high of 7 Mar
E-Mini Dow: Bouncing Above The Immediate Support
Maintain long positions. The E-Mini Dow firmed up its uptrend movement as it bounced off its support yesterday following the recent pullback. It settled 425 pointts higher at 33,223 points – heading towards the 50-day average line.
The index opened yesterday at 32,763 points and inched lower towards the 32,491-pt day low before reversing upwards to hit the 33,263-pt day’s high near the end of the session. The re-emergence of the buying momentum yesterday suggests the recent pullback has been capped at the latest 32,491-point t support or yesterday’s low, as the E-Mini Dow has bounced off above it. The index is now set to propel higher beyond the 33,434-pt resistance and also the 50-day average line.
As we expect the bullish momentum to resume, we stick to our positive trading bias – unless the stop-loss mark is breached.
