- The Dow Jones Industrial 30 indice has been trading in a decreasing resistance cone formation since a few weeks now. Last week, the indice opened at 17,557 levels and managed to close above the 18,000 mark, higher by close to 2%. A push above 18,150 would confirm a bullish break out that could push it higher towards fresh highs. On the flip side, a bearish reversal around 18,100 levels could be setting up for a deeper correction lower.
- The DAX has been printing higher highs since several weeks and the last one was no exception. The indice managed to close at yet another high at 12,374 this week, up more than 2%. Upside potential still remains up to 12,900 levels in near future. A meaningful correction could be expected after that.
- FTSE rallied more than 3% this week, after opening around 6833 levels and closing around 7089 levels respectively. The indice moves into fresh higher levels, with the bulls poised to push through 7200 levels at least, where resistance is expected.
- Nifty inched higher, close to 2% this week by closing at 8780 levels. The indice should find strong resistance around 8800/8900 levels and produce a bearish reversal. Nifty might be heading lower towards 7800-8000 levels in the weeks to come by.
- The US Dollar Index rallied throughout the week and closed above 99.00 levels again. A push through 100.00 levels would confirm that the rally could continue higher towards 104.00/105.00 levels.
- The EURUSD pair dropped lower to 1.0601 levels this week. Immediate intermediary support is seen at 1.0460 levels and a push below that would confirm that the pair is inching towards parity against The US Dollar. Euro might have resumed its long term down trend.
- GBP also closed the week in the RED by printing fresh lows at 1.4586 levels and closing at 1.4613 respectively against the USD. The AUD closed marginally high by around 30 pips, at 0.7672 levels producing a doji, while the NZD closed in the RED at 0.7521 levels against the USD.
- On the domestic front, the USD gained against rupee by 30 points and closed higher at 62.39 spot levels. On the flip side, the rupee strengthened against Euro and GBP by closing around 66.17 spot and 91.28 spot levels respectively.
Precious Metals and Crude Oil:
- Gold trades around $1,207.00 spot levels per tri ounce at the moment. It is too early to predict with high probability that the metal has bottomed out around $1,130.00/40.00 levels. A drop below $1,140.00 mark could easily see $1,030.00 and lower levels soon enough. Only a push above $1,300.00 would confirm that an intermediary low has been in place. It is recommended to remain flat for now.
- Silver is showing sighs of bullish potential after bouncing off from $16.10/20 levels last week. The metal could be unfolding an inverted head and shoulder reversal at the moment and could be looking to push through $18.00 levels soon. It is recommended to remain long for now.
- MCX Gold has dropped from 27000 handle and closed the week around 26,780 levels on Friday. The metal is expected to inch higher with USD expected to gain against the rupee. MCX Silver also closed weak around 36,300 levels after printing highs at 38,500 levels early this week. The metal is a good buy on dips from here on.
- Crude is indicating a bottom formation around $50.00 levels at the moment. It is preparing to rally higher and clear resistance at $59.00 levels in near future. $47.50 spot is immediate support for any dips to be held. MCX Crude oil has inched higher and closed at 3200 levels last week and is expected to continue the current rally at the back drop of international crude oil prices.
Global equity markets should remain a mixed bag in the upcoming week with Asian Markets showing signs of weakness and European Markets inching towards fresh highs. Nifty is set to hit key resistance at 8800/8900 levels this week and it should be interesting to watch how it reacts there. A meaningful correction could be underway soon.
Have A Great Weekend!