the daily chartist

Daily market recap for 31.05.2018

published 3 years ago


Bitcoin really wants to push above the 7563.09 line for a move higher, but it is finding a lot of resistance and uncertainty in it's determination. The Crypto has opened at 7291, made a slight low at 7280.60 and made a high at 7562.10. Price settled at 7497.20. Pressure is lifted, somewhat, but I have charted a possible move down at least towards 6466.52. In my view the price is taking a break, making a small correction, will crawl at 7563.09 if there is no success breaching that level. It looks the price is making a flag configuration for a move down. We need to see further confirmation on that one, for now careful with the longs especially around 7563.09. Selling on that level is preferable.

 The Euro has managed to lift, taking gains moving above 1.16700, reaching level 1.17247 where it found resistance. The price opened at 1.16644, made a low at 1.16408, where it found support there. Price reached a high of 1.17240 and settled at 1.16926. Relief from Italy helped the price to move up. Yesterday we had Unemployment Claims which came in positive at 221K against 228K forecast. Personal Income stayed flat at 0.3% as forecasted, Personal Spending though came in with an increase at 0.6% vs. 0.4% forecast. If Bull sentiment remains in the Euro pair, we may see another attempt at 1.17000 and even beyond. 

 Gold continues to fail reaching to new tops. Price opened at 1301.700, made a high at 1306.426, after that it turned down again to a low of 1297.380 and settled at 1298.010. Risk on and good data from U.S. subdued the price down. Price failed again at the 200DEMA and the 1306.591 level. The price now seems to be making a range between 1295.509 and 1306.591. Trade the range, careful for any sharp changes in the price. 

 Oil did quite the stunts Yesterday as we had Inventories data. Price at first opened at 68.16, made a high at 68.21, after the data it dropped hard and fast to a low of 66.51 and closed at 66.99. Data came in at -3620K vs +450K expected. Details for Weekly US petroleum inventories and production:

  • Prior +5778K
  • Gasoline +534K vs -1500K expected
  • Prior gasoline +1883K
  • Distillates +634K vs -1200K expected
  • Prior distillates -951K
  • Production +0.4% w/w
  • Production 10.769 mbpd vs 10.725 mbpd prior
  • Production up 15.3% y/y

 The countdown is to 11 million barrels per day in the US. OVerall, this helps to reverse the big surprise build from last week. That report was what really started the hiccup in Crude prices in the past week (along with OPEC talks of raising quotas). 
 First there was a sharp rise towards almost 68.41 level, after that it dropped fast going again under the 61.8 Fibo. Price closed under that. A hard battle is going on around that level and the future breaches will determine the direction, depending on the demand of course and the production.