News Column

KASB Securities Limited and Economics Research- Commodities Corner

June 11, 2014



WTI breaks 3 week high on strong global outlook

Gold higher on short covering: Gold prices were modestly higher in early dealings, on a short-covering bounce and some perceived bargain hunting after recent selling pressure.

With no major economic data scheduled, markets will be eyeing investment and consumer demand, as additional short covering and bargain hunting is possible.

WTI gains momentum on strong global economic outlook: US crude advanced to a three weeks' high on strong economic data out of China and optimism regarding the US recovery. Concerns that political tensions in Libya may disrupt supplies have also led to buying interest. Libya has been mired by unrest in the three years since the overthrow of Muammar Qaddafi, limiting crude output.

Time Currency Impact Event Forecast Previous

10 th June 2014 Tuesday

7:00pm USD Medium JOLTS Job Openings 4.04M 4.01M

11 th June 2014 Wednesday

7:30pm USD Medium Crude Oil Inventories -1.3M -3.4M

10:01pm USD Medium 10-y Bond Auction - 2.61|2.6

11:00pm USD Medium Federal Budget Balance -132.8B 106.9B

Gold Spot

Technical Strategy: Play the range

Gold closed at US$1,252, below the 15-DMA which is at US$1,262. However, RSI and Stochastic are bullish and suggest higher prices in the foreseeable future. KASB Securities Limited recommends playing the range of US$1,250 (5-DMA) - US$1,265. A break below US$1,250 can target US$1,241 while a break above US$1,265 can target US$1,270 (20-DMA).

Silver Spot

Technical Strategy: Buy on Weakness

Silver closed at US$19.02, above the 5-DMA which is at US$18.97. RSI and Stochastic are bullish and suggest higher prices in the near future. KASB Securities Limited recommends buying on weakness above US$18.97 targeting US$19.41 (50-DMA) with stops below US$18.68 (Last week's low).

WTI Spot (Crude Oil)

Technical Strategy: Sell on Strength

Oil closed at US$104.54, above the 5-DMA which is at US$103.33. However, RSI and Stochastic are overbought in the short term charts and suggest that the upside is limited. KASB Securities Limited recommends playing the range of US$105.09 (Upper Bollinger) - US$104.16 (61.8% retracement of US$92.26-US$112.21). A break below US$104.16 can target US$103.33; while a break above US$105.09 can target US$105.46.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Pakistan Press International


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters