Daily Markets

• Oil prices edged up in Asia on Thursday, supported by strong demand in the U.S. after gasoline stocks hit a three month low and crude stockpiles dropped unexpectedly, with supply concerns remaining after Ukrainian attacks on Russian refineries. Both contracts had risen about 3% to a four-month high on Wednesday on the elevated U.S. demand outlook and heightened geopolitical risk. U.S. gasoline inventories slid for a sixth straight week, falling by 5.7 million barrels to 234.1 million barrels, the Energy Information Administration (EIA)said on Wednesday, triple the expectations for a 1.9 million-barrel draw. Stocks of motor fuel at the U.S. Gulf Coast fell to their lowest since November 2022, while finished motor gasoline supplied, a proxy for demand, edged up 30,000 barrels per day to more than 9 million bpd for the first time this year. U.S. crude oil stockpiles also fell unexpectedly as processing increased. Supportive on the demand front, the U.S. bought around 3.25 million barrels of oil for the country's Strategic Petroleum Reserve for August delivery. Meanwhile, Ukrainian drone strikes on Russian refining facilities continued for a second day on Wednesday, causing a fire at Rosneft's biggest refinery in one of the most serious attacks against Russia's energy sector in recent months. After seriously damaging Lukoil's refinery in Nizhny Novgorod on Tuesday, Ukraine hit refineries in the Rostov and Ryazan regions, Russian officials said. In Ryazan, a drone attack caused a fire at Rosneft's refinery. Two sources familiar with the situation told Reuters that the refinery had been forced to shut down two primary oil refining units. Separately, concerns on how crude output would pan out in March, given the rise in February, kept a lid on prices. Nigeria's oil production is also steadily rising, hitting 1.476 million barrels per day (bpd) in February, the highest in more than three years.

Gold – XAU

Gold on Wednesday made its intraday high of US$2179.78/oz and low of $2155.70/oz. Gold is up by 0.744% at US$2174.14/oz.

Technicals in Focus:

On the daily charts, gold trades higher than 20DMA (1953). If it drops below this level, it could lead to 1,927. 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 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 2160-2220 keeping stop loss closing above 2220, targeting 2,140 and 2,129-2,120-2100. Buy in between 2140-2066 with risk below 2066 targeting 2160-2172-2180 and 2190-2200-2009.

Silver - XAG

Silver on Wednesday made its intraday high of US$25.14/oz and low of US$24.94/oz settle up by 1.37% at US$24.96/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 23.90-19.30, targeting 23.90-24.60 and 25.00-25.90 with stop loss should be placed on the breakage below 19.00. Sell in between 24.60-27.50 with a stop loss above 27.50 targeting 23.90- 23.20-22.40 and 21.90-21.50-20.90.

Oil - WTI

Crude Oil on Wednesday made an intra‐day high of US$79.48/bbl, an intraday low of US$77.31/bbl, and settled down by 1.885% to close at US79.19/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 to confirm 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 79.90-83.30 with stop loss at 83.30; targeting 78.00-77.30-76.50 and 75.75-74.40-73.70. Buy above 79.00-71.00 with risk daily closing below 71.00; targeting 79.90-80.80-81.50 and 82.00-82.50-83.35.

EUR/USD

EUR/USD on Tuesday made an intraday low of US$1.0919/EUR, a high of US$1.0963/EUR, and settled the day down by 0.202% to close at US$1.0948/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 1.0940-1.1100, targeting 1.0805-1.0775 and 1.0770-1.0640 with stop-loss at daily closing above 1.1100. Buy above 1.0905-1.0450 with risk below 1.0400 targeting 1.0890 and 1.1020-1.1105-1.1145.

GBP/USD

GBP/USD on Wednesday made an intra‐day low of US$1.2773/GBP, a high of US$1.2810/GBP, and settled the day down by 0.046% to close at US$1.2798/GBP.

Technicals in Focus:

On daily charts, prices are sustaining below 50DMA (1.2674) 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 a bullish 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 1.2760-1.2050 with a target of 1.2670-1.2730 and 1.2790-1.2850-1.2890 with a stop loss closing below 1.2050. Sell in between 1.2800-1.3120 with targets at 1.2760-1.2690 and 1.2630-1.2540-1.2490 with a stop loss of 1.2950.

USD/JPY

USD/JPY on Wednesday made an intra‐day low of JPY147.22/USD an intraday high of 148.04/USD, and settled the day up by 0.00% at JPY147.61/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 100DMA (137.57), 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 148.10-153.50 with risk above 153.90 targeting 147.40 and 146.95-146.50-145.80. Long positions above 148.10-140.90 with targets of 148.10-148.90 and 149.50-150.50-151.30 with stops below 140.00.