TENSIONS in Syria dominated the market last week.
The US was still waiting for approval from the United Nations to lead a strike against the Syrian government for alleged use of chemical weapons against civilians.
The market sentiment implicated fear in dampening stocks but sent commodity prices like oil and precious metals higher in the early part of last week.
The UK Parliament rejected the support for war while France declared its readiness amid internal disagreement.
Meanwhile, Russia voiced support for Syria and challenged US to prove the findings of its claims.
Gold prices reversed after spiking up to 1,433.50 highs last week. The market closed below the 1,400.00 psychological levels on Friday and signalled exhaustion in technical patterns.
This week, we reckon that gold prices would continue the bearish move if it does not penetrate above 1,410.00 resistances.
The expected downtrend is likely to aim at S1—1,370.00 regions and S2—1,350.00 regions if the selling pressures continue.
Silver prices rallied last week above 25.000 regions on Wednesday. However, the trend was capped by strong resistance and market reversed afterwards. Silver prices slumped to 23.550 levels on Friday amid stronger greenback.
This week, we foresee that the market would continue to be bearish and might re-test the 23.000 regions.
Currently, the market could be entering a complex consolidation mode while we reckon the range to trade from 22.500 and 25.000 regions this week.
Meanwhile, WTI Crude prices spiked up to 112.22 regions amid war tension in Syria. However, the profit-taking emerged and drove the trend down to 107.66 levels for weekend closing.
This week, we reckon that the market to probably trade with bullish bias while it might aim at 112.00 regions again.
However, we reckon a possibility to recoil at 105.00 levels in early coming week before the trend rebounds higher.
Crude Palm Oil Futures (FCPO) on Bursa Derivatives traded from 2,396—2,485 last week and fell after mid-week.
The market closed at 2,410 in November delivery month and quite in neutral zone due to contraction in open interest.
This week, we reckon the trend to slide further to test 2,350 supports before bargain-hunting emerges.
Topside resistance remains at 2,450 levels but new tension in Syria may pierce this level and re-test the 2,500 regions.
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> DAR Wong and Wahyu PY are the research team of PWFOREX.com. You may reach them through www.pwforex.com