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Stocks Trade Higher- Zoom Earnings Give Hope, Banks Higher, and Dollar Weak, Again

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      10/06/21 10:53

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    • Brent crude oil and gold rally on falling US dollar and US natural gas prices Outlook on Brent crude oil, gold and US natural gas as US dollar sees steepest 4-day loss since July 2020 amid weaker than expected US ISM manufacturing data. Source: Bloomberg   Forex Commodities Brent Crude Gold United States Petroleum  Axel Rudolph | Market Analyst, London | Publication date: Tuesday 04 October 2022  Brent crude oil probes resistance on OPEC+ supply cut rumours Brent crude oil’s recovery from its $82.55 September low is grappling with the breached 2-year uptrend line which, because of inverse polarity, now acts as a resistance line as rumours abound that OPEC+ will cut output by more than 1 million barrels per day (bpd) at its meeting in Vienna on Wednesday. This coupled with a weaker US dollar having witnessed its steepest 4-day loss since July 2020, helped the price of Brent crude oil recover by over 7% from its late September low. Good resistance sits between the July, August lows and the 21 September high at $91.08 to $92.53. Further up the mid-September high, 55-day simple moving average (SMA) and five-month downtrend line can be spotted at $94.42 to $95.19. Slips should find support near the early September low at $86.99 with further minor support being found at the 30 September trough at $84.93. Source: ProRealTime Gold surges to 3-week high The gold price’s 5% rally off its September 2 ½ year $1,616 per troy ounce low on a rapidly depreciating US dollar has taken it to above its $1,681 to $1,689 resistance zone which entails the July and early September lows. In doing so it has left its August-to-October downtrend channel and is seen heading towards the 55-day SMA and 12 September high at $1,723 to $1,735. Any short-term retracement is likely to find initial support in the $1,689 to $1,681 zone. Further down lies Monday’s low at $1,660. Source: Bloomberg US natural gas futures slip to 2 ½ month low US natural gas futures dropped around 4% on Monday, hitting a 2 ½ month low as the US ISM Manufacturing PMI unexpectedly fell to 50.9 in September, its lowest growth in factory activity since the 2020 Covid-19 pandemic as companies adjust to potential future lower demand. On Monday the front month contract slid by over 6% to $6.370 on weak demand, to below the 200-day SMA at $6.623, another daily chart close below which would push the July low at $5.330 back to the fore. On the way down minor support can be spotted at $5.955, the 12 July low. Resistance above the 200-day SMA comes in between the 27 and 29 September highs at $7.147 to $7.236. Source: ProRealTime
    • 04 October 2022 Spot Gold The rebound from oversold territory has taken gold back to trend line resistance. The long-term trend for the precious yellow metal does however remain down. For confirmation that the downtrend could have ended, we would like to see the price closing above the major high at 1735. In this situation we would consider the downtrend to have been broken and would consider the merits of long positions once again. However, while 1735 remains resistance we continue to prefer a short bias to trades on the commodity. To initiate new short positions, we would like to see a reversal off either trend line or horizontal resistance with a close below the 1680 mark. In this scenario 1615 to 1600 would provide downside targets from the move, while traders could use a close above the reversal high (should it occur) as a stop loss indication for the trade.       Brent Crude Oil The price of brent crude is currently rebounding from what was oversold territory. The longer-term trend bias does however remain down. To reconsider long positions on the commodity, we would like to see the price closing back above trend line resistance and the major high at 9520. However, until these levels are broken, we maintain looking for short entry on a bearish reversal, whereby 8280 would become our initial support target and the reversal high used as a stop loss indication for the trade.       Our weekly technical report is compiled by in-house senior market analyst, Shaun Murison.
    • Market data to trade on Wednesday: NZD rates; TSCO earnings; OPEC+ After the downside surprise from the Australian central bank, could the Reserve Bank of New Zealand also go for a smaller rise in rates? If so, this may push the AUD/NZD up to key resistance levels. Also, an OPEC+ meeting could support oil if it delivers a 1-million barrel cut in production. IGTV’s Jeremy Naylor also looks at Tesco (TSCO) earnings.          
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