CRUDE OIL

Crude Oil on 23rd August 2017, Crude Oil August futures prices up by (35) pts (1.14%) closed at 3107, trading range between 3058 – 3116. Crude oil for October delivery on the New York Mercantile Exchange settled at $48.41 a barrel. Crude futures traded higher on Wednesday, as report confirmed U.S. supplies of crude oil fell for an eighth-straight week.

According to EIA report – the crude and gasoline stockpiles fell last week but gains were limited as U.S. supply remained at a two-year high of 9.528 m barrels, up 26,000 bpd from last week. Inventories of U.S. crude fell around 3.3 m barrels in the week ended Aug 18, failing prospect of a draw of about 3.5 m barrels.

Technical Outlook

Short Term

Intraday Crude oil prices reacted according to the pattern formed yesterday, which was “Rising wedge pattern.” 1 H intraday chart Prices are being supported at $47.50 (3050). Resistance holds at $49-50(3139-3100). A break below the support could lead towards $46.50-45 level. Bullish momentum can be noticed in the short-term chart.

Long-term View

The daily chart has formed Megaphone chart pattern as the prices failed to hold above resistance line at $50(3200). The current prices trade nearby resistance line at $49. The long term 200 moving average holds as resistance line at $49.64 (3180) and support is on 50 day moving average at $46.66 (2988).

GOLD

Gold on 23rd August 2017, Gold prices up by (59) pts closed at 29164 trading range between 29074 - 29214 and December Comex Gold futures settled at $1294.70 division of the New York Mercantile Exchange. Gold prices settled higher on Wednesday, after President Donald Trump made a statement that he would close down the government which led to continued fears on political insecurity in Washington could delay the preamble of tax-reform.

Technical Outlook

Short Term View

Gold prices moved slightly higher at $1296 which is the selling point. Market will push the support area as hourly chart has formed “Head and shoulder Chart pattern”. The current trend may reverse towards $1283-1272(28800-28650) levels. 

According to this pattern, it is more likely that these prices will be under selling pressure. A break below $1290(29000) will keep the pattern active and a break above $1299 will cancel this pattern. The momentum will change from negative to positive.

Long-term View

Gold prices hit above $1300(29300) but couldn’t sustain around this area and finally closed lower. This indicate Triple top reversal pattern which usually leads to downside pressure.

On the Gold 4H chart, prices have formed “Ascending broadening wedge” and continue to rally further on the same direction according to the pattern. It has rebounded towards upper resistance trend line at 1300(29400) which will be a triple top and struggling place. A break above and close of a daily candle will lead towards $1318-1362 (29600-30000).

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