World market daily update for 19/06/2009

BULLION

Gold posted a downside reversal and closed lower on Thursday ending a two-day short covering bounce off Monday's low on speculation that a stronger dollar will reduce its investment appeal. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are oversold but remain neutral to 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 20-day moving average crossing would signal that a short-term low has been posted. ENERGY Crude Oil closed higher on Thursday after reports signalled that the U.S. economy will rebound later this year, prompting an increase in energy demand. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI have turned bearish signalling that a short-term top might be in or is near. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted.

Silver closed lower on Thursday while extending this week's trading range as a stronger dollar and an improving U.S. economy will reduce its investment appeal. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that sideways to lower prices are possible near-term. If it renews this week's decline, the reaction low crossing is the next downside target. Closes above the 20-day moving average crossing would temper the near-term bearish outlook in the market.

U.S. STOCK MARKET INDICES

DJI 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. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. SPI closed higher due to short covering on Thursday as it consolidates some of this week'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 remain bearish signalling that sideways to lower prices are possible near-term. NDI posted an inside day with a slightly lower close on Thursday as it extends this week's narrow trading range. The mid-range close sets the stage for a steady opening on Friday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term.