Market Analysis of Gold on Monday, July 26, 2021
On Monday early session, gold continued to be under pressure and rebounded after testing 1800. Last week US Dollar strengthened due to the better-than-expected U.S. economic data and second-quarter earnings report. The U.S. stock market has surged for four consecutive days, and the three major stock indexes have all set record highs. Gold is under pressure and there may be a risk of selling. However, the spread of the Delta varian continues to be a challenge. The Tokyo Olympics in Japan are held as scheduled, but it is difficult to escape the positive diagnosis, which makes the market risk sentiment erratic. From a technical point of view, the daily candle and weekly candle fluctuates and weakened from a high position. H4 graph showed that Gold is under the downward channel. MA converges however MACD doesn’t not show a shrink in volume. Overall prioritise operation within the fluctuation zone. The chart below is showing the key point and the estimated trend, the deciding point whether to buy or sell is near 1790.
Resistance：1810-1815-1825
Support：1800-1790-1782
Market Analysis of Crude Oil on Monday, July 26, 2021
In Asian session on Monday, crude oil fluctuated around 71.50, and oil prices rose slightly last Friday. Despite the possibility of a resurgence of the epidemic, the surge in risks associated with the epidemic in Southeast Asia which will hinder economic recovery, there are signs that global demand remains strong. For example, US crude oil inventories have risen for the first time since May. OPEC+ resumed production cuts in August 2021 and announced an increase of 400,000 barrels per month for the rest of this year, triggering a sharp drop in oil prices. However, as the market realized that the additional supply of OPEC+ would be offset by the recovery in global demand, crude oil rebounded.
From technical perspective, weekly candles closed with a T pattern, daily candles closed bullish, and it is currently above MA60. H4 graph is stable, the MACD is above the 0 axis, and the moving averages are very close to each other. Overall, the current upward movement of crude oil weakened, prioritise operation within the fluctuation zone. The chart below is showing the key point and the estimated trend, the deciding point whether to buy or sell is near 70.20.
Resistance：72.00-72.50-74.00
Support：71.00-70.20-69.60
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