US-China trade deal and aftermath

Global Stock Indices

In the previous week, a positive sentiment owing to US-China trade deal possibility led US indices to close at higher levels. S&P500 closed at 3120 while DOW closed at 28000 and NASDAQ closed above 8320. RUSSELL closed at 1597.

As per astrology, this trade war will continue for now and no resolution is expected at this stage. The uptrend that started in October across global equities should have its top out by Tuesday (+/- 1 day).

For today, mixed trend is indicated. We are not sure if it will close slightly positive or negative. Market shall close positive on Tuesday. From Wednesday, it’ll gradually enter a bear cycle.  On Thursday-Friday, bearish trend is expected. On Friday, it can recover from lower levels and close positive. Next week shall be more bearish. On Monday, gap down opening is possible. This downward move will last till first week of December 2019.

S&P500 has support at 3100 and resistance at 3126. If the support is breached then it opens door to 3073. If 3070 is breached then a sharp selloff may be observed.

Following stocks may trade bullish in the week ahead:

• MICROSOFT
• APPLE
• ALPHABET

If you long these stocks then book profit by Tuesday’s closing.

Precious Metals

The bottom of bullion has been made in the previous week. Gold Dec contract has support at 1454 and resistance at 1477. Silver Dec contract has support at 16.60 and resistance at 17.20. The week ahead is positive. Today, trend will remain upward. On Tuesday, it may decline. From Wednesday, it’ll again turn positive. More of bullish trend will be visible in the second half of this week.

Copper

Hold long in Copper with S/L 2.60.

Crude Oil

Crude Jan contract has support at 56.00 and resistance at 58.60. With S/L of 58.60, remain short in crude at higher levels. In next few weeks, it may breach 52.00. In the week ahead, mixed trend is indicated. Both side moves are possible. From Wednesday to Thursday, decline is expected. On Friday, recovery is possible. Next week is more bearish.

Natural Gas

The low has been made in previous week. We asked you to book 50% profit in long position around 2.67. Hold remaining long position. Around 2.60-2.58, add long position in NG. By December 2019, it may cross 3.20.