US stocks had a steady session, fishing just below the previous day’s all-time highs. A slow crawl to higher ground looks quite possible although the daily charts do suggest that we may be in for a minor correction at some stage soon.
WTI rose about 2% on Friday, after a short covering rally was triggered by comments from Saudi Arabia's oil minister in the previous session about possible action to help stabilize the market. Further medium term gains look possible.
Gold and Silver both spiked higher following the soft US Retail Sales reading but were unable to hold onto their gains and both finished just above session lows. The charts suggest that we could head a little lower in the week ahead.
S&P: 2180
24hr Bias: Neutral
Medium Term Bias: : The S+P finished the week just below Thursday’s all-time high, but with the daily charts looking slightly negative, the preference remains to sell into strength but without looking for too much on the downside, should we see a correction. A run to 2140/50 would again find decent buyers. If wrong, a slow crawl to further highs is on the cards.
DJI: 18525
24hr Bias: Neutral
Medium Term Bias: Ditto S+P. Prefer to sell a break below the rising trend support/ Friday's low, at 18485, looking for a run towards 18350, possibly 18200. If wrong, the slow crawl higher looks set to continue.
ASX SPI: 5475
24hr Bias: Neutral
Medium Term Bias: Mildly Bearish
Gold: 1335
24hr Bias: Neutral
Medium Term Bias: Mildly Bearish
Despite a brief spike to 1256 on Friday following the US data, Gold finished near its lows and appears set to remain heavy. At some stage a test of the rising trend support at around 1300 may be on the cards although the shorter term indicators are currently flat, so we may be in for some choppy trade around current levels today, but the preference is to sell into strength.
Silver: 19.70
24hr Bias: Neutral
Medium Term: Mildly Bearish
WTI Oil: 44.70
24hr Bias: Prefer to buy dips
Medium Term Bias: Mildly Bullish
The momentum indicators still generally look fairly healthy for further gains, although both the 1 and 4 hour charts are now overbought, so the preference is to take some profit near current levels and then look for a dip to buy back into. The weekly cloud top (44.60) and the weekly Tenkan (44.90) may prove to be a short term hurdle but with the dailies still looking constructive, a test of the descending trend resistance, currently at 46.30, may eventually be on the cards, although the 100 DMA, at 45.00 also currently stands in the way.
Jim Langlands
FX Charts
www.fxchartsdaily.com
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