Comex Gold : Breaching Above The USD1,750 Resistance
The COMEX Gold broke past the US$1,750 resistance yesterday amid strong momentum to close at US$1,769.20 – forming a “higher high” bullish pattern, RHB Research said.
The commodity started off the session with a gap-up, opening stronger at US$1,751.40. After this positive opening, it progressed higher throughout the session, touching the US$1,774.40 session high before the close. The latest bullish candlestick saw the COMEX Gold reclaiming the 20-day SMA line.
RHB said that it has observed the RSI trending higher, indicating the bullish momentum is now gaining traction. For now, the US$1,750 level will become the nearest support.
Since the bullish momentum is now taking the lead, we shift to a positive bias. RHB said that it closed out the short positions initiated at US$1,813.50 – 14 Jun’s close – after the US$1,750 trailing-stop was triggered.
Conversely, RHB said that it initiates long positions at 28 Jul’s close, ie US$1,769.20. To minimise the trading risks, the initial stop-loss threshold is placed at US$1,700.
The immediate support has changed to US$1,750 and is followed by the US$1,700 round number. The immediate resistance sticks at US$1,770, with the higher resistance pegged at the US$1,800 whole number.
E-Mini Dow: Bulls Set To Propel Higher
The E-Mini Dow printed another strong bullish momentum as it gained 318 points yesterday to settle at 32,490 points – ready to break past the 32,491-point immediate resistance, RHB Research said.
Despite opening lower at 32,144 points, the index rebounded strongly from its intraday low of 31,944 points towards hitting the 32,609-point high before retracing moderately at the close.
The two consecutive bullish momentums firmed up the uptrend movement above the 50-day average line for the short-term outlook. Coupled with the RSI pointing higher at 62%, we expect the EMini Dow to jump above the immediate resistance – propelling towards the next resistance at 33,434 points or 31 May’s high.
As mentioned earlier, it said that the long-term outlook remains cautious, as the commodity is still trading below the 200-day average line of 33,963 points. Riding on the short term bullish momentum, 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 trailing-stop threshold is set at 31,504 points. The immediate support is set at 31,504 points – 21 Jul’s low – and followed by 30,947 points, ie 18 Jul’s low. The immediate resistance is pegged at 32,491 points or 2 Jun’s low. This is followed by 33,434 points, which was 31 May’s high.
WTI Crude : Still Struggling To Initiate a Rebound
The WTI Crude reversed from its intraday-high to close in a negative tone yesterday as it fell US$0.84 before settling at US$96.42 – within the sideways consolidation phase between the US$99.99 resistance and 200-day average line, RHB Research said.
The commodity opened higher at US$98.17 and climbed to touch the US$99.84 high. However, selling pressure then emerged to reverse its trajectory – the WTI Crude fell towards hitting the US$96.04 low before the close.
The black body candlestick with upper shadow that formed yesterday justifies the selling pressure below the USD99.99 resistance remaining intact. Hence, the downward bias is imminent for the commodity to fall below the 200-day average line after consolidating sideways in the later sessions.
Unless the momentum reverses, we retain our bearish bias. We recommend traders stick with the short positions initiated at US$115.31 or the close of 15 Jun. To manage the trading risks, the trailing-stop threshold is set at US$105.24.
The immediate support is set at USD93.67 – 13 Jul’s low – and followed by USD90.56, which was 14 Jul’s low. Conversely, the immediate resistance is set at USD99.99, ie 21 Jul’s high. The next resistance is at USD105.24 or 8 Jul’s high.
