Daily Markets

• Oil prices extended gains for a second session on Wednesday after a strong jump in manufacturing in China, the world's top crude importer, boosted the outlook for global fuel demand. Oil prices continue to be supported by expectations for a strong rebound in demand in China, the world's second-largest crude consumer. Data showed China's factory activity rose for the first time in seven months in February, according to the purchasing manager's index (PMI) published by Caixin/S&P Global on Wednesday. Official government PMI data also published on Wednesday showed the fastest expansion in manufacturing since 2012 occurred in February. However, the strong demand signal was offset by signs of rising crude stockpiles in the United States, the world's biggest oil consumer and producer. U.S. oil inventories rose by 6.2 million barrels in the week ended Feb. 24, according to market sources citing American Petroleum Institute (API) figures on Tuesday. Still, gasoline inventories declined by 1.8 million barrels and distillate fuels, including diesel and jet fuel, dropped by 340,000 barrels, according to the API data. Official U.S. government data on stockpiles is due later on Wednesday. That data is forecast to show a 10th consecutive week of builds, with analysts in a Reuters poll expecting that a rise of nearly half a million barrels occurred last week. Other signs of rising supply were seen from data on the Organization of the Petroleum Exporting Countries (OPEC). In February, OPEC pumped 28.97 million barrels per day (bpd), a Reuters survey found, up by 150,000 bpd from January. Output is still down more than 700,000 bpd from September.

Gold – XAU

Gold on Tuesday made it’s intraday high of US$1831.06/oz and low of $1806.56/oz. Gold is up by 0.520% at US$1826.51/oz.

Technicals in Focus:

In daily charts, prices are above 200DMA (1809) and breakage below will call for 1790. MACD is above the zero line and histograms are a2lso increasing trend and it will bring an upward stance in the upcoming sessions. RSI is in the overbought region and more upside is expected before it gets stretched. The Stochastic Oscillator is in neutral territory and giving a negative crossover to a bearish stance for intraday trade.

Trading Strategy: Sell on Strength

Sell below 1840-1874 keeping stop loss closing above 1874, targeting 1830-1823-1802 and 1790-1774-1761. Buy in between 1830-1761 with risk below 1761, targeting 1844 and 1853-1874-1887.

Silver - XAG

Silver on Tuesday made its intraday high of US$20.99/oz and low of US20.40/oz settled down by 1.309% at US$20.88/oz.

Technicals in Focus:

On daily charts, silver is sustaining below 100DMA (21.00), breakage above will lead to 21.60. MACD is below the zero line and histograms are decreasing trend and it will bring a bearish stance in the upcoming sessions. RSI is approaching the neutral region, indicating a buy signal for now. The Stochastic Oscillator is in the oversold region and gives a positive crossover to show an upside move for the intraday trade.

Trading Strategy: Buy on Dips

Buy in between 21.10-18.30, targeting 22.10-23.00 and 24.40-25.00-25.90 with stop loss should be placed on the breakage below 18.00. Sell in between 23.10-26.20 with stop loss above 26.20; targeting 20.70-19.90 and 19.50-19.01.

Oil - WTI

Crude Oil on Tuesday made an intra‐day high of US$77.84/bbl, an intraday low of US$75.57/bbl, and settled up by 1.424% to close at US$76.83/bbl.

Technicals in Focus:

On daily charts, oil is sustaining above its 20DMA i.e. 68.50 which is a support level and breakage below will call for 65.40. MACD is above the zero line and histograms are in increasing mode will bring a bullish stance in the upcoming sessions. The Stochastic Oscillator is in the neutral region, giving a positive crossover for confirmation of a bullish stance; while the RSI is in the neutral region and more upside can be expected to reach the overbought region, which is highly probable.

Trading Strategy: Neutral to Sell

Sell in between 77.90-80.40 with stop loss at 80.40; targeting 75.10-74.00-73.10 and 72.40-71.90-71.00. Buy above 76.10-71.20 with risk daily closing below 71.20; targeting 77.00-78.10 and 78.95-79.65-80.30.

EUR/USD

EUR/USD on Tuesday made an intraday low of US$1.0573/EUR, a high of US$1.0644/EUR, and settled the day down by 0.323% to close at US$1.0574/EUR.

Technicals in Focus:

On daily charts, prices are sustaining above 50DMA (1.0736), which becomes immediate support, a break below will target 1.0647. MACD is above the zero line and histograms are increasing mode which will bring a bullish view. Stochastic is in overbought territory and giving positive crossovers to the bullish outlook for intraday. 14D RSI is currently in a neutral region and giving no directions to consider right now.

Trading Strategy: Neutral to Sell

Sell below 1.0590-1.0810, targeting 1.0520-1.0480 and 1.0450-1.0400 with stop-loss at daily closing above 1.0810. Buy above 1.0550-1.0450 with risk below 1.0450 targeting 1.0550-1.0590-1.0650 and 1.0690-1.0750-1.0810.

GBP/USD

GBP/USD on Tuesday made an intra‐day low of US$1.2016/GBP, a high of US$1.2142/GBP, and settled the day up 0.352% to close at US$1.2019/GBP.

Technicals in Focus:

On daily charts, prices are sustaining below 20DMA (1.21) is becoming a resistance level. 14-D RSI is currently in a neutral region and direction is difficult to predict on RSI bases. The Stochastic Oscillator is in overbought territory and gives a positive crossover to confirm bullish a stance. MACD is above the zero line but histograms are increasing leading to movement.

Trading Strategy: Neutral to Buy

Based on the charts and explanations above; buy in between 1.2010-1.1650 with a target of 1.2090-1.2120 and 1.2170-1.2290- 1.2390 with a stop loss closing below 1.1650. Sell in between 1.2060-1.2650 with targets at 1.2010-1.1900-1.1820 and 1.1750- 1.1650-1.1600 with stop loss should be 1.2445.

USD/JPY

USD/JPY on Tuesday made an intra‐day low of JPY135.75/USD and made an intraday high of JPY136.91/USD and settled the day down by 0.0088% at JPY136.14/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 200DMA (108.30), which is initial support on the daily chart. 14-D RSI is currently in the overbought region and chances of downward are expected based on RSI. MACD is above the zero line but histograms are in decreasing mode which might lead to downward movement. The Stochastic Oscillator is in neutral territory and signaling to sell as it has given a negative crossover to confirm a bearish stance.

Trading Strategy: Neutral to Sell

Sell below 136.50-140.60 with risk above 140.60 targeting 135.50-134.90-133.90 and 132.90-132.00-131.60. Long positions above 135.50-131.20 with targets of 136.50-138.10-139.00 and 140.10-140.60 with stops below 130.00.