STOCKS
Dow (25075.13, +0.61%) is trading just below weekly resistance at 25000 while the daily and the 3day candles show some more scope on the upside. While below 25000, the index could trade sideways for a few sessions before trying to move up towards 25400 levels.
Dax (13167.89, +1.46%) continues to trade within the 13200-12800 region. It may test the immediate resistance at 13200 in the next few sessions and attempt another fall towards 12800. Note that 12800 is a long term support and is likely to hold in the longer term eventually taking the index above 13200 in the coming weeks.
The sharp surge in Nikkei (23547.78, +0.18%) has come in much later than our expectations as indicated by the Dollar Yen (112.824) and the US-Japan 10Yr yield (2.41%) spread during mid of Dec’17. However while the yield spread heads towards 2.4% or higher and the Dollar Yen moves up to test 113 or higher, Nikkei could move higher towards 23600-23800 in the medium term with some interim dips.
Shanghai (3387.79, +0.07%) is looking strong just now and is likely to move up towards resistance at 3500 in the coming sessions.
Nifty (10504.80, +0.59%) and Sensex (33969.64, +0.52%) will have to break and sustain above 10550 and 34200 levels respectively to turn more bullish just now. A sharp surge on the upside looks unlikely and the indices may remain ranged in the near term. Immediate supports near 10400 and 33600 is holding well for now.
COMMODITIES
Gold (1321.89) has moved up sharply from levels near 1308. While the US Dollar Index moves down towards 91, Gold is likely to test 1350 on the upside before coming off from there to levels near 1300 and lower in the medium term. Near term looks bullish.
Brent (67.96) and WTI (61.94) are trading at crucial resistance levels and if that holds, a corrective dip is possible in the coming sessions; else the prices could keep moving upwards to test fresh highs in the current rally breaking above near term resistances. WTI has indicated a break above the weekly resistance near 59-60 levels and while that sustains, it could well move up towards 64. Brent has almost moved up towards 68 as expected in our earlier predictions but will now have to move up beyond 68 to record fresh highs.
Copper (3.2680) may get some support near 3.20 which if holds could take the metal to levels near 3.35-3.40 in the medium term. 3.40 could thereafter act as an important long term resistance. For now Copper looks sideways to bullish for the coming sessions.
FOREX
Euro (1.2077) held above the 1.1997 Support yesterday and may move up to 1.2150 while above 1.20. Break below 1.20 sets up test of stronger Support at 1.19, delaying but not negating rise to 1.2150.
Dollar-Yen (112.82) did not break below 112 yesterday and may try to weakly test the 113.00-50, as the bounce could fizzle out. The Euro-Yen (136.22) has risen past the resistance at 135.70 mentioned yesterday. This opens up chances of a rise towards 1.38, after the multi-month sideways consolidation between 132-134.
The Pound (1.3562) trades higher and may well rise past 1.36 as well. The Aussie (0.7852) seems to be breaking above the 200-week Moving Average mentioned yesterday and may rise further towards 0.80.
Dollar-Rupee should have Resistance in the 63.60-80 region and can test 63.30-10 along with Euro strength.
