Daily Market Report: June 18, 2021

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June 18, 2021

Gold and Oil: the Major Commodities Maintain the Bearish Trend

U.S. Stock Market

Last: 33,681

Pivot: 33,630

Review:

U.S. stocks were mixed after the close on Thursday, as gains in the Technology, Healthcare and Consumer Services sectors led shares higher, while losses in the Oil & Gas, Basic Materials and Financials sectors pushed them in the opposite direction. At the close in NYSE, the Dow Jones Industrial Average lost 0.62% to hit a new 1-month low, while the S&P 500 index dropped 0.04%, and the NASDAQ Composite index climbed 0.87%.

Technical comment:

The immediate trend remains up and the momentum is strong.

Preference scenario:

Long positions above 33,630 with targets at 34,145 & 34,480 in extension.

Alternative scenario:

Below 33,630, look for further downside with 33,475 & 33,340 as targets.

Resistance 34,145 34,480 34,735
Support 3,340 33,475 33,630
Gold and Oil: the Major Commodities Maintain the Bearish Trend
USD/CAD

Last: 1.2356

Pivot: 1.2328

Review:

USD/CAD is testing the resistance level at 1.2350.

Technical comment:

The RSI is above 50. The MACD is positive and below its signal line. The pair could retrace. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 1.2341 and 1.2304).

Preference scenario:

As long as 1.2328 is support, look for 1.2402.

Alternative scenario:

The downside breakout of 1.2328 would call for 1.2304 and 1.2290.

Resistance 1.2388 1.2402 1.2415
Support 1.229 1.2304 1.2328
Gold and Oil: the Major Commodities Maintain the Bearish Trend
Gold

Last: 1,776.63

Pivot: 1,767.5

Review:

Gold prices tumbled almost 5% to head back to the mid-$1,700 levels.

Technical comment:

The RSI is below 50. The MACD is above its signal line and negative. The configuration is mixed. Gold is trading under both its 20 and 50 period moving average (respectively at 1781.60 and 1803.10).

Preference scenario:

Short-term rebound towards 1798.50.

Alternative scenario:

Below 1767.50, expect 1756 and 1749.50.

Resistance 1,798.5 1,805.5 1,812
Support 1,749.5 1,756 1,767.5
Gold and Oil: the Major Commodities Maintain the Bearish Trend
Oil

Last: 71.13

Pivot: 70.65

Review:

Oil settled down $1.11, or 1.5%, at $71.04 per barrel. It was WTI’s biggest slide on the day since a 2.1% drop on May 20.

Technical comment:

The RSI is below its neutrality area at 50% but reversing up.

Preference scenario:

Long positions above 70.65 with targets at 72.30 & 73.00 in extension.

Alternative scenario:

Below 70.65, look for further downside with 69.80 & 69.30 as targets.

Resistance 72.3 73 73.5
Support 69.3 69.8 70.65
Gold and Oil: the Major Commodities Maintain the Bearish Trend
EUR/USD

Last: 1.1912

Pivot: 1.195

Review:

EUR/USD fell 0.1% to 1.1986.

Technical comment:

A break below 1.1890 would trigger a drop towards 1.1865.

Preference scenario:

Short positions below 1.1950 with targets at 1.1890 & 1.1865 in extension.

Alternative scenario:

Above 1.1950 look for further upside with 1.1980 & 1.2005 as targets.

Resistance 1.195 1.198 1.2005
Support 1.184 1.1865 1.189
Gold and Oil: the Major Commodities Maintain the Bearish Trend
GBP/USD

Last: 1.3933

Pivot: 1.3965

Review:

GBP/USD was flat at 1.3987.

Technical comment:

As long as the resistance at 1.3965 is not surpassed, the risk of the break below 1.3895 remains high.

Preference scenario:

Short positions below 1.3965 with targets at 1.3895 & 1.3865 in extension.

Alternative scenario:

Above 1.3965 look for further upside with 1.4005 & 1.4040 as targets.

Resistance 1.3965 1.4005 1.404
Support 1.384 1.3865 1.3895
Gold and Oil: the Major Commodities Maintain the Bearish Trend

Customer Notice: The charts are provided by Trading Central, which is a respected third party research provider. The information provided should not be considered as trading or investment advice. Trade360 provides Trading Central chart analysis to support clients in their trading decisions, which should be independently evaluated. The recipient acknowledges that he is solely responsible for his decisions. The analysis offered reflects the views of Trading Central and are subject to change at any time. Past performance of a financial asset is not a reliable indicator of its future performance. Trade360 cannot be held liable for any information provided by Trading Central. Trade360 makes no representation and assumes no liability as to the accuracy or completeness of the information provided nor any loss arising from any investment based on this material, forecast or other information supplied by an employee of Trade360, a third party or otherwise.

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