Market Update 24/5:S&P,GOLD and WTI

SPX_24_5

GOLD_24_5

 

WTIC_24_5

Following last week’s market action,S&P remains by and large on a bullish macro trend,albeit retracing within its main upward channel to the upper band of the secondary one.Further downward movement within the 1600 to 1650 price range should not come as a suprise.MACD and RSI readings have been consistently at the high end-particularly MACD-for some time now,so taking a bit of steam out is a healthy reaction.

Gold is in a critical territory,forming a bear flag pattern that can potentially push it much further below.Potential support lies around the 1250 fibo level and below that at 1100.To avoid this scenario we need to see gold reacting soon in a positive manner.In defence of the loyal gold bugs out there,there is no denying that their beloved asset has been the favorite target of every central banker at this part of the galaxy lately.Still though,the need for physical gold seems to endure in the face of generalized macroeconomic uncertainty plaguing the markets.

Volatility continues in the oil markets as it is mirrored in the chart above.The price hovers around the 50 day MA and just below the critical 95$ level.If it manages to break above 95$,then it should return at the 95-97$ price range as it did for the greater part of the previous month.Geopolitical tensions in the middle east continue to put pressure on the price of oil,even though the global economic outlook turns bleak with Europe mired in recession and other major economies strugling to sustain growth.

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This entry was posted in Markets.

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