Morning Insights 20th August

Simon Alagbe

Analyst


Instrument: US30

Intraday: Bullish

Technical Analysis

Preference:  Buy position is envisaged if price trades above 27600 with take profit at 27750

Alternative scenario: Sell position is envisaged if price trades below 27300  with take profit at 27100

Fundamentals:    

No major economic data with direct bearing to this index    

Comment:  US30 also reacted negatively to the FOMC minutes yesterday, however the bearish move from yesterday and the early ours of this morning got stopped out at a key level of support around 27,388; it is envisaged that US.30 will try to recover because the stock market will keep on getting more investors pumping money into it. The U.S will never allow the stock market to crash so it is safe to always be on the bullish end of this instrument.



Instrument: GOLD

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged if price trades above 1956.50 with take profit at 1965.50 

Alternative scenario: Sell position is envisaged if price trades below 1932.50  with take profit  at 1915.50

Fundamentals:

No major economic data with direct bearing to this commodity

Comment: Yesterday, the FOMC minutes gave a temporary strength to the dollar which made Gold react negatively to a key support area. However, the news could not make Gold break the bullish structure. It is envisaged that Gold will recover, given that the rate of infection is still high and because of loose monetary policies from Central Banks around the world. 

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