STOCKS
Dow (24211.48, +0.29%) bounced back a bit yesterday. Daily candle support is visible near 24000. A test of 24000 is possible before the index rises back towards 24600.
Dax (13034.88, +0.28%) continues to remain in its sideways consolidation mode and could spend some more time within this region. Another week could be spent in the 13200-12800 region before attempting a rise above 13200.
Nikkei (22772.53, +1.22%) bounced back sharply towards 22800 contrary to our expectation of a test of 22000 on the downside. Overall broad 23000-22000 region is holding well but Nikkei seems to be still confused on the medium term directions. We need to wait for a confirmed break on either side to get some clarity on the directional front.
Shanghai (3271.02, -0.03%) is likely to test 3250-3230 levels while below 3300. Note that 3230 is an interim support which could hold, pushing the price back towards 3300; else a fall towards 3200 or lower would come into picture, if we see a break below 3230.
Nifty (10166.70, +1.22%) bounced back sharply from levels below our mentioned 10050 and has managed a close above 10150 yesterday. Sensex (32949.21, +1.08%) on the other hand rose as expected moving up towards 33000. While important levels of 10000 and 33000 holds on Nifty and Sensex respectively, near term looks bullish.
COMMODITIES
Commodities look mixed just now. Gold and Silver have been falling and could trade low for some more time while crude prices look positive.
Gold (1251.20) has broken below immediate supports and could be headed towards 1200 in the next few sessions. A break below 1240 could take it straight down to 1200. Near term looks bearish.
Silver (15.762) has been steadily and gradually falling from levels near 17.25 since the last session of Novemnber’17. A test of 15.25-15.00 levels seems possible in the near term.
Brent (62.15) moved back to current levels instead of testing 60 on the downside. While below 64.75, the downside scope of testing 61.0-60.0 still remains. WTI (56.63) has held above our mentioned support near 56.6 and could now move up to re-test 58.
Copper (2.9700) has earlier support turned resistance near 3.0 and if that produces a rejection, prices could fall to 2.90 in the near term/
FOREX
Dollar-Index (93.823), as per expectations, has continued its rise towards resistance at 94.00 on the 3 day candles and the daily line charts. There could be a corrective dip after touching 94.00 or else, in case of a breach of 94.00, it will test resistance around 94.4-94.5 on the daily candles, from where a dip would then be likely.
Euro (1.1767) is also swiftly moving towards support on 3 day candles & daily line chart at 1.1760-1.1750 (this was earlier mentioned as 1.1775). If the Dollar Index dips from 94 we might see a hold of support for the Euro at 1.1750-1.1760; whereas if the Dollar Index moves towards 94.50, the Euro could test support at 1.17 on the daily candles.
Dollar-Yen (113.33) as predicted, is on way to test resistance at 113.40-113.50 on the daily line charts, as the Dollar Index and Euro move towards 94 and 1.175 respectively. If the above two move further towards 94.50 and 1.170 respectively, we could see Dollar-Yen rise further to test resistance around 113.80-114.00 on the 3 day and weekly line charts.
Pound (1.3478), as per our prediction, tested support yesterday reaching a low of 1.3320 and bouncing back to close at 1.3472, where it is currently trading. It can now rise towards 1.355 to test resistance on the daily candles, after which there could be another dip.
Dollar Rupee (64.575) looks set to test resistance near 64.60-64.80 as the Euro moves towards crucial support near 1.17. It could dip back towards 64.40 again after testing resistance.
INTEREST RATES
US yields are all trading higher. The 5Yr (2.14%), the 10YR (2.37%) and the 30Yr (2.77%) are back to levels seen last week and have all bounced back from support levels. The 10Yer could test 2.40% while the 5Yr and the 30Yr could be headed towards 2.20% and 2.83% respectively.
The Japan-US 10Y (2.32%) continues to remain ranged within the 2.28-2.37% region, trading along the channel resistance. The sideways movement could continue for some more time before deciding on further direction.
The German-US 10YR (-2.08%) has fallen further and looks bearish for the coming sessions. It has tested our mentioned -2.08% and could move down towards -2.10% and lower in the near term.
