Market Analysis of Gold on Wednesday 21 July 2021
On Tuesday, gold closed at $1810.16/ounce, down around $2.42. After hitting a high of 1824.98 on the day, gold was rapidly dropped by $20. The main reason this happened is due to the strengthening of the US dollar and the US bond yields which overcame the risk aversion sentiment to buy gold due to the coronavirus. In addition, the rebound in US stocks and the start of new housing construction is expected to depress gold prices and suppress the entry of safe-haven funds.
From a technical perspective, gold's daily candle continues to close with a doji pattern, which is a signal that the market under correction. Gold continues to weaken in early trading. The 4-hour chart shows that gold is under pressure, and the BOLL is going down. MA formed Death Cross, MACD is bearish and is below the 0 axis. Overall, prioritize Sell at high prices within the fluctuation zone. Consider the support zone and resistance zone, the deciding point whether to buy or sell is near 1800
Resistance：1818-1825-1834
Support：1800-1795-1785
Market Analysis of Crude Oil on Wednesday 21 July 2021
On Tuesday, crude oil continued to fall under pressure by 0.11USD or 0.16%, and closed at 66.39USD per barrel. The data released by API previously showed that crude oil inventories increased by 806,000 barrels and gasoline inventories surged by 3.307 million barrels, far exceeding the expectations. The increase in gasoline inventories indicates that the recent US crude oil demand is not good. The spread of new variant Covid virus and the oil exporting countries reached an agreement to increase the supply in the next few months have restricted the oil prices.
From technical perspective, daily candles are closed bearish and forms Doji Star. Whether it rebounds or continues the decline, today's closing is going to be very important. The 4 hours graph shows that crude oil is currently under correction and forms a ladder bottom structure plete. The indicators are shows a strong bearish signal. 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：66.00-65.50-63.80
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