Stock markets have been weakening a bit lately, healthy pullback or the beginning of something more invasive? May find out soon. Dow Jones and DAX in focus. Gold price finally found a level where sellers were able to take control, the precious metal is due for a pullback; silver may be a decent short. Crude oil is holding firm but may be about to pull back.
Technical Highlights:
- Dow Jones, DAX pullbacks to be bought?
- Gold price due to rest after big run
- Crude oil may pull back soon
Make more informed decisions by checking out our trading forecasts and educational resources on the DailyFX Trading Guides page.
Dow Jones, DAX pullbacks to be bought?
The Dow is pulling back from resistance, but will the decline grow legs or be reduced here shortly to only a pullback. If the general tone of the market lately is any indication, then don’t count on stocks rolling over just yet. For now, though, standing neutral on U.S. indices.
Dow Jones Daily Chart (pullback or double-top?)
The DAX has a very nice-looking chart right now, especially the hourly. We looked at the set-up in yesterday’s DAX/CAC commentary, but since then we are seeing solid push off support via a rising channel line and June 11 swing-high. Additionally, a bull-flag was just trigged. As long as the day low 12189 is not broken looking for a move up to at least the recent swing high around 12438.
DAX Daily Chart (trading inside channel)
DAX Hourly Chart (held support, broke bull-flag)
Gold price due to rest after big run
Gold finally find a price where selling interest picked up, it arrived around an old level from 2013. The semi-bearish reversal candle yesterday is leading to weakness today, and going forward it appears sideways to down will be the bias until overbought conditions can be worked off. A break above yesterday’s high of 1439 will still be vulnerable to a set-back until the market has had time to digest the recent run. Big-picture gold is set up for higher prices, it just might take some time before it does so.
Gold Price Daily Chart (reversal to start correction)
Crude oil may pull back soon
Crude oil is rallying into a thicket of price, t-line, and 200-day MA resistance, which could soon prove problematic. However, not confident it will lead to a substantial decline as trend determination is still lacking from where I sit. Existing longs may want to monitor price action for signs of a sharp reversal to manage P&L while would-be shorts could use a turn down in momentum as an opportunity to place bearish wagers.
Crude Oil Daily Chart (price, t-line, 200-day)
Resources for Index & Commodity Traders
Whether you are a new or an experienced trader, DailyFX has several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, and trading guides to help you improve trading performance.
We also have a series of guides for those looking to trade specific markets, such as the S&P 500, Dow, DAX, gold, silver, crude oil, and copper.
---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
