Market Analysis of Gold on Tuesday 20 July 2021
On Monday, US gold rebounded quickly and tested a low of $1794.97. This is because US Treasury yields plunged to their lowest level since February this year and the coronavirus epidemic once again caused panic market indices to spike, stock markets and crude oil markets plummeted, while the US dollar index and safe-haven gold rose. From a technical perspective, the gold candle reached a bottom and formed a doji pattern. The bullish and bearish sentiments are mixed, but the bullish sentiment tends to be stronger in the short term. On the 4-hour chart, it can be seen that 1818 was the previous deciding point for bulls and bears. MA forms a golden cross, while other indicators are neutral. Overall, prioritize operation within the fluctuation zone. Consider the support zone and resistance zone, the deciding point whether to buy or sell is near 1807
Resistance：1826-1834-1840
Support：1807-1800-1795
Market Analysis of Crude Oil on Tuesday 20 July 2021
On Monday, crude oil fell rapidly due to the news, and tested the lowest price at 65.50, which was the lowest in 5 weeks. The reason is that OPEC and its allies agreed to increase production, starting in August by up to 400,000 barrels per day. OPEC planned to cancel the production cut of 5.8 million barrels per day before September 2022. At the same time, the counterattack of the new variant virus threatens global demand. Three days before the opening of the Tokyo Olympics, athletes in the Olympic Village and training camp have tested positive in succession, which shows that the epidemic is serious.
From technical point of view, daily candles closed by bearish candles, MA forms Death Cross, and bearish sentiment is strong. H4 Graph shows ladder bottom forming a downward gap, the rebound was weak, all indicator shows bearish signs. Overall, prioritise Sell on high positions. The chart below is showing the key point and the estimated trend, the deciding point whether to buy or sell is near 65.50.
Resistance：67.00-67.80-68.50
Support：65.50-64.80-64.00
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