Overnight Moves

Today, we looked at 9 charts; below are only some of them, but first, let’s have a look at what happened over the weekend. Today’s morning call was relatively short because of the situation we see the market being in currently, it is very difficult to gauge where we are going next. The Rand has weakened, metals have taken a massive hit, with silver down by 11.66%. We see oil gaining amid new threats in the Persian Gulf, and overall, today will be very volatile for traders.

SA Top 40 Index

We expect further downward movement today, to the point where we will cross 100,000, and our next level to watch would be around 95,000. At this point, we suggest waiting to see how the market plays out today as the price falls. This momentum is due in part to the Middle East conflict, as the disruption of oil feeds into fears of higher inflation for South Africans, and investors looked to safe havens for stability.

Gold

Gold joins the sea of red we see today for the metal space, down by 3.3%, and we do not expect this to change today. In the last week, we have seen a steep decline in the gold price as retailers are squeezed out as inflation concerns rise. Looking at the chart, we have broken previous swing lows, which is a very bearish signal, and to play on this, we suggest looking at $4,200, $4,100, and then $3,900 as our next key levels for a possible reversal in momentum. The downside trend is very strong currently, and we recommend staying safe at this time by trading low risk, if you do trade at all today.

Oil

Iran has said it will attack Israel’s power plants and plants supplying U.S. bases in the Persian Gulf if US President Donald Trump carries out his threat to attack Iran’s power network. On Friday, oil gained 2.8%, and today it is up 3.5% at the time of writing. We have found steady resistance around $100 over the last week, but we might see the price hold above today’s level. With these very real threats to energy and water in the Gulf region, and the Strait of Hormuz still being blockaded, we see volatility rising today, and we will likely see oil reflect that.

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*Please note that these trade ideas form part of a larger weekly plan and the value of financial products can increase as well as decrease over time, depending on the value of the underlying securities and market conditions. The risk of loss arising from trading in Contracts for Difference can be substantial. You should carefully consider whether such investments are suitable for you in the light of your circumstances and financial resources.