World market daily update for 31/07/2009

Gold closed higher due to short covering on Thursday as it consolidated some of this week's decline. The high-range close sets the stage for a steady to higher opening on Friday. However, stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. If it extends this week's decline, the reaction low crossing is the next downside target. Closes above the 10-day moving average crossing would confirm that a short-term low has been posted.

Silver closed higher due to short covering on Thursday as it consolidated some of Wednesday's decline. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. If it extends this week's decline, this month's low crossing is the next downside target. Closes above the 10-day moving average crossing would temper the near-term bearish outlook.

DJI closed sharply higher on Thursday renewing this month's rally. The mid-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near-term. SPI closed higher on Thursday as it extends this month's rally. The mid-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near-term. NDI closed sharply higher on Thursday renewing this month's rally. The mid-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near-term.

Crude Oil sharply higher due to short covering on Thursday as it consolidates some of Wednesday's decline but remains below the 20-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are turning bearish signalling that sideways to lower prices are possible near-term. If it extends Wednesday's decline, this month's low crossing is the next downside target.