The COMEX Gold staged a strong rebound yesterday to close at USD1,731.30. The commodity started off the session at USD1,711.50 and initially experienced selling pressure – dipping towards the USD1,696.10 session low, RHB Research said.
Strong buying pressure then emerged in the evening, lifting the COMEX Gold towards the USD1,737.30 session high before the close. The latest bullish candlestick affirmed that USD1,700 is providing strong support while the bulls have the technical advantage.
If the positive momentum follows through, the commodity may close the week in positive territory. This will improve market sentiment and rally the precious metal to test the USD1,750 immediate resistance.
Breaching this threshold will form a fresh “higher high” bullish pattern. Before this happens, the trailing-stop mark stays intact for now – hence, we keep to a negative bias. Traders are advised to retain the short positions initiated at USD1,813.50, ie 14 Jun’s close.
To mitigate the trading risks, the trailing-stop threshold is revised to USD1,750 from USD1,770. The immediate support is located at USD1,700, followed by the USD1,680 level. On the upside, the immediate resistance is eyed at the USD1,750 whole number, followed by the USD1,770 point.
E-Mini Dow: Set To Rebound Higher
The E-Mini Dow continued its positive rebound yesterday after inching higher by 154 pts to close at 32,007 points – breaking above the 31,867-point immediate resistance, RHB research said.
The index initially started off lower at 31,791 points and fell towards the 31,504-point intraday low before strong buying pressure kicked in. It then rebounded strongly as it propelled upwards towards the end of the session – hitting the 32,032-point day high.
The bullish momentum that formed a “higher high” bullish pattern yesterday has firmed up the bullish reversal pattern above the 200-day average line. With that, we expect the bulls to persist in bringing the E-Mini Dow further towards the 32,491-point resistance.
This is followed by the 33,434-point next resistance. It is also supported by the recent strengthening of the RSI heading towards the 60% level. As such, we hold on to our bullish bias. Traders should keep to the long positions initiated at 31,487 points or 24 Jun’s close.
To mitigate the downside risks, the initial stop-loss threshold is set at 30,947 pts, which was the low of 18 Jul. The immediate support is revised higher to 31,867 points or 28 Jun’s high. This is then followed by 30,947 points, which was 18 Jul’s low. The immediate resistance is changed to 32,491 points – 2 Jun’s low – and followed by 33,434 points, ie 31 May’s high.
WTI Crude : Failure To Rebound; Falling Towards The 200-Day SMA Line
The WTI Crude fell sharply towards the 200-day average line yesterday as it declined USD5.91 to close at USD96.35 – reclaiming below the USD100 mark, RHB Research said.
It said that the black gold had opened lower at USD99.91 and continued to fall towards the end of the session where it hit the USD94.59 low before rebounding mildly at the close. The opening with a “Gap Down” and yesterday’s sharp decline suggests the selling momentum is getting more obvious towards breaching the 200-day average line in the coming sessions – supported by the “lower low” bearish structure.
This is coupled with the RSI weakening below the 40% level. RHB expects the WTI Crude to fall below the USD95.85 support before dragging lower towards the USD90.56 next support. Riding on the growing bearish sentiment, we retain our bearish bias.
RHB recommends recommend traders stick with the short positions initiated at USD115.31 or the close of 15 Jun. To manage the trading risks, the trailing-stop threshold is set at USD105.24. The immediate support is pegged at USD95.85 – 18 Jul’s low – and followed by USD90.56, which was 14 Jul’s low. Conversely, the immediate resistance set at USD105.24 – 8 Jul’s high – with the higher resistance set at USD108.
