Intraday Market Analysis – WTI Rally Gains Traction.
USOIL consolidates gains
Oil prices jumped after the IEA raised its global oil demand growth forecast. WTI crude continues to grind its way up after it reached a seven-year high.
The RSI has returned to the neutrality area and a short-lived retracement met strong buying interest above 78.70. The bulls may raise volatility once again if they succeed in pushing back above the psychological tag of 82.00.
A newly overbought RSI may temporarily restrain the momentum. On the downside, a breakout could trigger a correction to 75.50.
XAGUSD rises towards key resistance
Silver advanced higher as the US dollar index licks wounds after a heavy decline.
The precious metal broke above the supply zone around the 30-day moving average (23.10). This is a sign of a bullish U-turn with 23.95 from the daily timeframe as the next target.
As the RSI flirts with the overbought territory, we can expect strong selling pressure at that level of interest. 22.90 is the immediate support in case of retracement. Further down, 22.20 is the bulls’ second line of defense.
US 100 attempts a bullish reversal
The Nasdaq 100 rose as investors anticipate strong profit growth in the third quarter.
The break above 14930 has prompted sellers to cover their positions, alleviating the bearish pressure in the process. The tech index has then secured support around 14600.
A bullish close above the psychological level of 15000 would bring some much-needed confidence to the long side. Then the daily resistance at 15415 would be in the crosshair. Meanwhile, the RSI’s overbought situation may cause a limited pullback to 14900.
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