COMMODITIES: This Week's Move Lower Reinforces Bearish WTI Theme
A bearish theme in WTI futures remains intact and the move down this week reinforces the current bearish theme. Note that moving average studies are in a bear-mode position, highlighting a dominant downtrend. Sights are on $57.50 next, the May 30 low, where a break would open $54.89, the May 5 low. Initial firm resistance is seen at $62.11, the 50-day EMA. Key resistance has been defined at $66.42, the Sep 26 high. A bull cycle in Gold remains intact and this week’s extension reinforces current conditions. The move higher maintains the price sequence of higher highs and higher lows. Sights are on the $4400.00 handle next, and $4404.9, a Fibonacci projection point. Note that the trend is in overbought territory. A move down would be considered corrective and would allow the overbought set-up to unwind. Support to watch lies at $3958.4, 20-day EMA.
- WTI Crude down $0.58 or -1.01% at $56.88
- Natural Gas down $0.03 or -0.89% at $2.913
- Gold spot up $19.42 or +0.45% at $4348.04
- Copper down $10.6 or -2.12% at $489.4
- Silver down $0.4 or -0.74% at $53.8666
- Platinum down $52.5 or -3.06% at $1667.2
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MNI: EUROZONE AUG FINAL HICP +0.1% M/M, +2.0% Y/Y
- MNI: EUROZONE AUG FINAL HICP +0.1% M/M, +2.0% Y/Y
- EUROZONE AUG FINAL CORE HICP +0.3% M/M, +2.3% Y/Y
- EUROZONE AUG FINAL SERVICES HICP +0.3% M/M, +3.1% Y/Y
COMMODITIES: Recent Recovery for WTI Futures Still Considered Corrective
The trend condition in WTI futures is unchanged - a bear cycle remains intact and the latest recovery is considered corrective. The pullback from the Sep 2 high highlights a possible recent reversal and the end of a corrective phase between Aug 13 - Sep 2. Initial resistance to watch is $66.03, the Sep 2 high. Key short-term resistance has been defined at $69.36, the Jul 30 high. A stronger resumption of weakness would open $57.71, the May 30 low. Gold remains in a clear bull cycle and the yellow metal is trading at its recent highs. A fresh all-time high, once again this week, confirms a resumption of the primary uptrend and an extension of the sequence of higher highs and higher lows. The next objective is $3705.2, a Fibonacci projection. Initial firm support lies at $3547.7, the 20-day EMA. Note that moving average studies are in a bull-mode position, highlighting a dominant uptrend.
- WTI Crude down $0.48 or -0.74% at $64.02
- Natural Gas down $0 or 0% at $3.102
- Gold spot down $25.19 or -0.68% at $3665.33
- Copper down $9.4 or -2% at $459.65
- Silver down $0.96 or -2.26% at $41.6271
- Platinum down $20.07 or -1.43% at $1380.87
EQUITIES: Bull Cycle in E-Mini S&P Intact Pre-Fed, Sights on $6700 Handle Next
Eurostoxx 50 futures have recently traded through the 20-day EMA - a bullish development for now. The move higher undermines a recent bearish theme and signals potential for a climb towards 5522.0, the Aug 26 high and a bull trigger. On the downside, key support has been defined at 5292.00, the Sep 2 low. Clearance of this level is required to reinstate a bearish theme. For now, yesterday’s move down appears corrective. A bull cycle in S&P E-Minis remains intact and the contract is trading closer to its recent highs. A fresh cycle high yesterday reinforces current bullish conditions. The move higher confirms a resumption of the primary uptrend and maintains the bullish price sequence of higher highs and higher lows. Sights are on the 6700.00 handle next and 6712.33, a Fibonacci projection. On the downside, initial support to watch is 6569.89, the 20-day EMA.
- Japan's NIKKEI closed lower by 111.89 pts or -0.25% at 44790.38 and the TOPIX ended 22.53 pts lower or -0.71% at 3145.83.
- Elsewhere, in China the SHANGHAI closed higher by 14.476 pts or +0.37% at 3876.341 and the HANG SENG ended 469.88 pts higher or +1.78% at 26908.39.
- Across Europe, Germany's DAX trades higher by 105.37 pts or +0.45% at 23433.77, FTSE 100 higher by 22.7 pts or +0.25% at 9218.46, CAC 40 up 7.1 pts or +0.09% at 7825.32 and Euro Stoxx 50 up 15.07 pts or +0.28% at 5387.38.
- Dow Jones mini down 11 pts or -0.02% at 45773, S&P 500 mini down 8.5 pts or -0.13% at 6602.25, NASDAQ mini down 39.5 pts or -0.16% at 24242.
