Daily Markets

• Oil prices rose on Friday and are set for a third weekly gain, as better-than-expected Chinese economic data and reports of record oil consumption bolstered the view that demand in the world's second-largest crude consumer will continue to surge. China's industrial output and retail sales grew at a faster-than-expected rate in August, suggesting the world's second-largest economy is starting to stabilise from a months-long stumble. Data from the National Bureau released on Friday also showed oil refinery processing rose to a record 64.69 million tonnes in August, up 19.6% from a year earlier and equal to 15.23 million barrels per day (bpd). Refining throughput surged as Chinese processors kept run rates high to meet summer travel demand and capitalise on strengthening margins for exporting to Asian consumers. The record China refining rates are occurring as output cuts by major producers Russia and Saudi Arabia are increasing worries about supply. The supply concerns have pushed both Brent and WTI to their highest since November. The International Energy Agency said this week it expects Saudi Arabia's and Russia's extended oil output cuts to result in a market deficit through the fourth quarter.

Gold – XAU

Gold on Thursday made its intraday high of US$1912.80/oz and low of $1900.93/oz. Gold is up by 0.104% at US$1910.35/oz.

Technicals in Focus:

On the daily charts, gold is currently trading higher than 200DMA (1906). If it drops below this level, it could lead to 1,874. The MACD is currently below the zero line but the histograms are showing an increasing trend, indicating that there may be upward movement in the coming sessions. The RSI is currently at 45.31, which is in the neutral region, suggesting that there may be more selling pressure before it rebounds. The Stochastic Oscillator is also in the oversold territory but has given a positive crossover, indicating a bullish stance for intraday trades.

Trading Strategy: Sell on Strength

Sell in between 1922-1970 keeping stop loss closing above 1970, targeting 1909-1890-1881 and 1870-1861. Buy in between 1900-1851 with risk below 1851 targeting 1922-1936-1946 and 1960-1976-1990.

Silver - XAG

Silver on Thursday made its intraday high of US$22.96/oz and low of US$22.28/oz settled down by 0.858% at US$22.63/oz.

Technicals in Focus:

On daily charts, silver is sustaining below 200DMA (22.91), breakage above will lead to 23.51. MACD is below the zero line and histograms are decreasing trend, bringing a bearish stance in the upcoming sessions. RSI is approaching the oversold region, indicating a sell 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 22.40-19.30, targeting 23.50-24.60-25.00 and 25.90-26.30 with stop loss should be placed on the breakage below 18.00. Sell in between 22.90-27.50 with a stop loss above 27.50; targeting 22.05 -21.60-21.00 and 20.80-20.40.

Oil - WTI

Crude Ol on Thursday made an intra‐day high of US$90.21/bbl, an intraday low of US$88.05/bbl, and settled up by 2.31% to close at US90.16/bbl.

Technicals in Focus:

On daily charts, oil is sustaining above its 100DMA i.e. 75.37, a support level, and breakage above will call for 77.48. 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 overbought region, giving a negative crossover for confirmation of a bearish stance; while the RSI is in the neutral region, more upside can be expected to reach the overbought region, which is highly probable.

Trading Strategy: Neutral to Sell

Sell in between 87.00-90.00 with stop loss at 90.00; targeting 86.00-85.60-85.00 and 84.50-83.60-82.50. Buy above 86.00-81.40 with risk daily closing below 81.40; targeting 87.00-87.50-88.10 and 89.00-89.90.

EUR/USD

EUR/USD on Wednesday made an intraday low of US$1.0710/EUR, a high of US$1.0764/EUR, and settled the day down by 0.230% to close at US$1.0728/EUR.

Technicals in Focus:

On daily charts, prices are sustaining above 100DMA (1.0800), which becomes immediate support, a break below will target 1.0717. MACD is above the zero line and histograms are increasing mode, bringing a bullish view. Stochastic is in oversold territory, giving negative 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 1.0700-1.1100, targeting 1.0630-1.0590 and 1.0500-1.0450 with stop-loss at daily closing above 1.1100. Buy above 1.0630-1.0450 with risk below 1.0450 targeting 1.0690-1.0750-1.0800 and 1.0870-1.0940-1.1060.

GBP/USD

GBP/USD on Thursday made an intra‐day low of US$1.2395/GBP, a high of US$1.2505/GBP, and settled the day down by 0.624% to close at US$1.2407/GBP.

Technicals in Focus:

On daily charts, prices are sustaining below 200DMA (1.2112) is becoming a resistance level. 14-D RSI is currently in a neutral region and direction is difficult to predict on an RSI basis. The Stochastic Oscillator is in oversold 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 1.2450-1.2300 with a target of 1.2600-1.2650-1.2800 and 1.2855-1.2900-1.2990 with a stop loss closing below 1.2400. Sell in between 1.2500-1.3200 with targets at 1.2450-1.2390-1.2300 and 1.2210-1.2150 with a stop loss of 1.3140.

USD/JPY

USD/JPY on Thursday made an intra‐day low of JPY147.01/USD, an intraday high of JPY147.55/USD, and settled the day up by 0.008 at JPY147.45/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 100DMA (137.57), which is major 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 overbought territory and signaling to sell as it has given a negative crossover to confirm a bearish stance.

Trading Strategy: Neutral to Sell

Sell below 148.00-150.10 with risk above 150.20 targeting 145.20-144.00-143.60 and 143.00-142.20-141.00. Long positions above 147.10-139.90 with targets of 148.00 and 148.80-149.50-150.10 with stops below 134.00.