Markets

Gold, Silver and Crude Oil

Red's Mid-week Report on Gold, Silver and Crude Oil

Gold ends its 3-day rally, WTI falls, USD rises

Gold futures on the COMEX Division of the New York Merc finished lower, ending a 3-day rally Wednesday, pressured by strength in the "Greenback" and players' profit-taking.

The most active Gold contract for June delivery lost 15.5, or 1%, to 1,501.4 oz. The Dollar Index, rose on Wednesday, paring Gold's appeal.

Silver for July delivery fell 2.971, or 7.7%, to 35.515 oz. and Platinum for July delivery declined 23.1, or 1.3% to 1,777.8 oz.

Total Crude Oil and petroleum products stocks rose +6.42 mmb to 1047.52 mmb on the week ended May 6.

Crude Oil stockpile rose +3.78 mmb to 370.33 mmb during the week with stock-build recorded in all PADDs. West Coast gained the most with 1.94 mmb added to storage. Cushing stocks rose for the 2nd week, by +1.12 mmb to 41.61 mmb. Utilization rate slipped for the 1st time in 4 weeks to 81.7%.

Gasoline inventory rose 1.28 mmb to 205.72 mmb as demand declined -1.31% to 8.8M bpd. Imports soared +9.67% to1.21 M bpd while production climbed 0.57% to 8.88 M bpd.

Distillate inventory dropped for a 5th week running, by -0.84 mmb to 144.29 mmb; demand contracted -3.19% to 3.77M bpd. Imports declined -15.74% to 0.17M bpd, and production dipped-0.31% to 4.18M bpd.

WTI Crude Oil fell to 110.32 immediately after the report which showed that Crude inventory increased more than expected and gasoline stockpile unexpectedly gained. Prices, however, received buying interests above 100 and recovered, but faded in the afternoon.

June Crude Oil fell 5.5% to close at 98.21 bbl; contributing factors to the 5.6% pullback Wednesday, included a stronger "Greenback", Bearish inventory data, and a continued pullback in Gasoline futures.

Gasoline futures, which were halted intra-day for 5 minutes, were hammered following this morning's data from the EIA, which showed that finished motor gasoline fell for the 3rd time in 4 weeks.

Support, Resistance and Trend

Gold

The general trend over the short term is to the Northside targeting 1600.00, the new psych mark, and Key support of 1430.00 remain intact into this week's closing.

Support: 1513.00, 1505.00, 1500.00, 1494.00, 1480.00

Resistance: 1530.00, 1537.00, 1545.00, 1549.00, 1556.00

Recommendation Based on the charts selling Gold around 1523.00 gradually targeting 1513.00,1510.00 and 1494.00, a Stop Loss is a 4 hr closing above 1537.00 IMO is appropriate. Stay tuned...

Silver

The general trend over short term is to the Southside targeting 26.65, and 48.50, the Key resistance, remains intact into this week's closing.

Support: 38.80, 38.50, 38.10, 37.45, 36.80

Resistance: 39.40, 39.75, 40.20, 40.85, 41.85

Recommendation Based on the charts selling silver around 39.40 targeting 37.45,36.45 and 35.65 , a Stop Loss is a 4 hr closing above 40.20 IMO is appropriate. Stay tuned...

Crude Oil

Crude had a strong Northside move and was not to mark the main resistance for the upside wave. The Stochastic and RSI dumped some of the buying saturation, and so the return to the downside and it was be confirmed with 4 hr closing below 103.50.

The trading range for Wednesday was at 98.21, just below the major support Zone, and the major resistance is at 107.65 into the week's close.

The short term trend is to the Southside with steady daily closing below 109.75 targeting 85.40.

Support: 103.50, 102.75, 102.20, 101.80, 101.05

Resistance: 104.30, 104.80, 105.25, 105.85, 106.50

Recommendation Based on the charts IMO selling Crude Oil with 4 hr closing below 103.50 and take profit in stages at 98.60, 96.60, and Stop Loss if there is close above 104.80 is appropriate. Stay tuned...

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

www.livetradingnews.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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