The longer term recovery for oil which peaked in the $52 per barrel area last month, is now reversing once more and picking up bearish momentum ahead of the weekly oil inventories due for release later today, as both the technical and fundamental picture help to drive prices lower once again.
Cable continued to consolidate last week in the after shock of Brexit, with the pair trading in a narrow range on the daily chart, and this continued at the start of this week’s trading keeping to a 70 pip range, and closing 9 pips lower off the open.
Last week’s bearish engulfing candle for gold on the weekly chart appears to have had some follow through at the start of the new trading week, as the precious metal fell victim to a renewal of risk appetite as most global equity markets made fresh monthly highs, and the S&P and DOW soaring into new high ground.
As we prepare for a volatile week, with every catastrophic world event being laid at the door of the UK and Brexit, it’s time to consider gold which is likely to see some volatile price action this week.
It was yet another interesting week for the USD, which continued to remain firmly in the control of the bears, with the pair closing the week on a wide spread down candle as pressure continues to build on the pair.
Like nervous students awaiting their end of year exams, so the major US indices are all approaching new high ground with equal trepitation, with the ES emini (SPY, quote) a classic example of the tension that is now building on the daily chart.
Whilst many commodities reacted strongly to the US employment data on Friday, with a consequent surge higher on US dollar weakness,
For longer term traders and investors in oil, as we come to the end of another month with the latest weekly oil inventories now posted, it is once again the weekly and monthly charts that provide insight and context for the future trends.
As we move to the end of another trading month a feature now building in US equity markets is the apparent disconnect between the three principal indices, and in particular the divergence between the NQ, which appears to be moving South, and the others which are moving North.
Bullish momentum for US equities remained firmly in the ascendency last week as bullish sentiment for the US dollar continues to weaken, and further extending the rally of the turbulent start to the year which saw major buying by the insiders as a result.
