CRUDE
Crude oil prices jumped at yesterday's session. US official said on Thursday Iranian ships are moving northeast away from Yemen. According to US official, Iran ships will be evacuated from the northeast Yemen, the release of "the promising signal". The Iran Oil minister Bijan Namdar wants to cut OPEC production by 5%, 30mn b/d. The OPEC's meeting is scheduled for June 05. In the coming June meeting we do not expect OPEC to cut production. In case a cut takes place, it will be a big thumb up. Technically, the crude oil price gave an upside breakout from the inverse head and shoulder breakout ($62.00). We have been recommending buying from the level of $53.40. We recommended buying with targets at 57.00, $58.50, and $59.00 in the coming weeks. Now, $58.40 is done. In the least case, it can touch $62.00 as well. The 100Dema is found at 55.75, which acts as strong support.
GOLD
Gold edged higher after the US soft data. But, it is unable to touch $1,200.00. The 50Dsma is found at $1,194.00. The metal is trading at $1,192.50 at the Asian session compared to yesterday's closing at $1,193.60. The metal fell below 20 & 50 dsma at yesterday's session. In the week ending April 18, the advance figure for seasonally adjusted initial claims was 295,000, 1,000 above the previous week's unrevised level of 294,000. April's data indicated slower growth momentum for the US manufacturing sector, with production volumes and incoming new work both expanding at slower pace than in the previous month. The metal has parallel support at $1,191.00. Market participants are waiting for today's euro meeting, developments in Greece and US are durable and core durable data. Next week's FOMC meeting is the crucial event for both bulls and bears. The prices have been consolidating in a tight range between $1,178.00 and $1,213.00. The confirmation of Grexit favors bulls, but chances are remote. We expect the US to release weak data today. At Wednesday's session, we said the metal could retest $1,180.00 in two days. The metal a made low at $1,183.00 and changed the direction. The key support level is found at $1,178.00. In case the price closes below $1,177.00, it can extend its fall towards a 52-week low. Intraday resistance is seen at $1,197.00 and $1,200.00. For an intraday session we recommend selling below $1,191.00 with small targets at $1,188.00, $1,184.00, $1,183.00, and $1,180.00. In case the US readings come below expectations, buy above $1,200.00 with targets at $1,204.00, $1,208.00, and $1,210.00. Strong resistance is found at $1,213.50 20Wsma. Until the price closes below $1,200.00, use every rise to sell.
