Market Analysis for 13Jan2015

Dear SGWiseInvestors Fan and Reader,

Yesterday’s dip is due to further downside in the Crude Oil. 

I will do a forecast of where we are heading in the near future.

Is the upside is intact? If yes, then we should see the bounce at around 16,400. 

INDU – where is it heading?

If it dips below 16,400 then we have to take note of these levels:-

1) 38.2% Fibonacci retracement – 17,244

2) 50% Fibonacci retracement – 16,979

3) 61.8% Fibonacci retracement – 16,709

NASDAQ

We should see the bounce at slightly below 6,750 if the uptrend is to resume further.

If it dips below 4,600 then we have to take note of these levels:-

1) 38.2% Fibonacci retracement – 4,546

2) 50% Fibonacci retracement – 4,466

3) 61.8% Fibonacci retracement – 4,386

WTI - Crude oil

Yesterday Goldman Sach has downgrade the outlook for Crude Oil to projected USD40. This is in line with what Sgwiseinvestors forecasted previously. So where are we heading? The further dip has caused some panic in the stock market yesterday. Today’s report shows that China has better import data and they have increase the import for crude oil. This looks like China is storing up crude oil and we should see the supply for crude oil snapped up fast. We should be reaching bottom soon and that is USD40. Hopefully we can see the bounce soon as it is oversold since 24 Nov 2014.

XAU - Gold

Gold shows a nice uptrend above the 200MA with RSI moving towards 70. We should see this test 82.5 soon. 

USD

USD is going strong and yesterday shows that the dip has reversed. We should hear more good news/data and this will push USD higher. We should bypass this small consolidation that is form on 08-12 Jan 2015