Market Analysis of Gold on Tuesday 27 July 2021
On Tuesday in the Asian session, Gold declined slightly and is traded at around 1795. On Monday, gold prices rose then weakened due to increasing concerns about the outlook for economic growth, and the yield on the 10-year US Treasury bond fell to a record low. The Fed's policy meeting is going to be held soon, causing investors to become increasingly more cautious, outpacing the support for gold brought on by the weakening of dollar. The lower-than-expected number of US new home sales in June may further strengthen forecasts that inflation will slow down.
From a technical perspective, the daily gold candle continues to be bearish, and the 1790 line becomes a key short term support point. The 4-hour graph maintains the downward trend and is in the process of forming the shoulder in a head and shoulder pattern. The MA indicator formed a Death Cross, MACD is showing increasing volume, and there is clear pressure from the middle BOLL band. Overall, prioritize operation within the fluctuation zone. Consider the support zone and resistance zone, the deciding point whether to buy or sell is near 1790
Resistance：1808-1815-1825
Support：1790-1783-1775
Market Analysis of Crude Oil on Tuesday 27 July 2021
On Tuesday Asia session, crude oil fluctuated around 72.00 and international oil prices remained stable. Last week, driven by expectations of strong U.S. demand and tight supply, crude oil benefited. This week, the increase in confirmed cases of the global new variant of covid virus hit the largest in two months. The spread of Delta Virus has raised concerns about the recovery of fuel demand, which become an obstacle for the price of crude oil. However, the market expects supplies will be tight for the rest of this year.
From a technical perspective, the daily candles forms Doji Star and moves below the middle band of bollinger band. Focus on the breakthrough of the 72.5 resistance point. H4 graph shows BOLL flattened and narrowed. H1 graph showed that the Bollinger band opened outward and the MACD volume reduced. Overall, the crude oil's upward momentum reduced, prioritise operation within fluctuation zone. The chart below is showing the key point and the estimated trend, the deciding point whether to buy or sell is near 72.50.
Resistance：72.50-74.00-75.00
Support：71.20-70.40-69.60
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