Weekly Crude oil analysis
Crude oil price remained under pressure last week following OPEC directions. Market tested below 65$ and sustained there for a quite long time. Below 65$ sustain gave a fair idea to sell further as it was a good resistance on chart. But sometime even technical levels could confuse traders.
Sustaining below 65$ was a trap to let sellers enter and make a double bottom on chart. Many traders press sell button thinking oil prices going to test 60$- 55$ and even more. But unfortunately we see other way. We are not satisfied with weak move and we would try to take buy in dips.
A good support on technical crude oil chart stands at 64$, This is a key level, If traders break this and manage to close below our support. Then double bottom equation is out of picture and oil prices trend may reverse further negative upto 62$- 60$ in upcoming week.
A good resistance on our technical chart stands at 67$. Its below 67$ but we always discount some volatility in our technical levels which is a good practice as it may help you regret when market hit exact resistance or support and revert back.
If crude oil breaks 67$ and close above our resistance then expect 70$- 73$ and even more upside in oil prices not ruled out.
Crude oil analysis conclusion for this week is we are looking for buy in dips till our support stands in its way. We will avoid major selling till then.
USD Index analysis
Spot USD Index ( DXY ) tested nearly 95 last week. We are taking spot dollar levels. Make sure you match with our levels. DXX is different and DXY levels are different. Dont confuse yourself with those levels. Dollar gained on good data but could not sustain on higher levels and tanked below 93.
Later dollar found solace above 93 and closed above this major hurdle. Our US Dollar Index chart suggests a support at 92.70, If traders break and close below this. Then expect more panic in dollar upto 92.40- 92 this week.
A good hurdle stands on US dollar index chart at 95, Once traders manage to pull this and close above our resistance. Then expect greenback to test upto 96.20- 97 this week.
USD Index analysis conclusion: Major events like Trump meet with Kim and Fed interest rate will decide the fate of dollar this week. On chart its looking flat to positive, but we are not convinced with this positive pattern.
Dow Jones Index analysis
Last week DJIA index break out pretty hard as it tested above 24700 which was a breakout level for double bottom we mentioned on chart. It tested above 25000 and gutted all sellers. It gained nearly 600 points from 24700 breakout and gave a highly positive close.
This week we have a resistance at 25550, If traders break and close above this level then expect more upside in DJIA index upto 25800- 26000.
A good support on Wall Street Index stands at 24980, If traders break and close below this level then expect some pressure in DJIA upto 24700- 24500.
Dow Jones Index trend is positive for this week but keep an eye on Trump Singapore summit and Federal reserve announcement this week.
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