European Open: Gold remains rangebound, $112 pivotal for WTI

Asian Indices:

Australia's ASX 200 index rose by 38.3 points (0.57%) and currently trades at 6,744.30
Japan's Nikkei 225 index has risen by 67.52 points (0.25%) and currently trades at 2,938.79
Hong Kong's Hang Seng index has fallen by -185.96 points (-0.84%) and currently trades at 22,043.56
China's A50 Index has fallen by -7.64 points (-0.05%) and currently trades at 14,798.45

UK and Europe:

UK's FTSE 100 futures are currently down -6.5 points (-0.09%), the cash market is currently estimated to open at 7,251.82
Euro STOXX 50 futures are currently down -16 points (-0.45%), the cash market is currently estimated to open at 3,522.88
Germany's DAX futures are currently down -46 points (-0.35%), the cash market is currently estimated to open at 13,140.07

US Futures:

DJI futures are currently up 12 points (0.04%)
S&P 500 futures are currently down -4.75 points (-0.04%)
Nasdaq 100 futures are currently down -0.25 points (-0.01%)

After all of the excitement of late, I suspect we’ve entered a frustrating phase where markets are feverishly seeking a catalyst that doesn’t arrive. And that can see traders hand back profits made in during the previous spell of volatility.

So far this week we have seen Wall Street gap higher then lose those early gains, yet trade within tight ranges. Currency markets lack conviction in either direction, so until we see volatility return and breakouts succeed, the risk is for volatility to remain low.

WTI (4-hour chart):

With that said, oil prices are perking up as the G7 vow to release fresh sanctions on Russia, aimed at curbing their oil export profits. WTI rose to a 5-day high overnight and is close to testing last week’s high (which is a bullish hammer). Prices are also testing the monthly pivot point after last week’s trendline break. A clear break above $112 also clears the weekly R2 pivot and 20-day eMA, which assumes bullish continuation. However, a bearish reversal pattern around or below current levels suggests a swing high is in place.

Gold (1-hour chart):

The ‘Russian gold ban’ was the catalyst that never was. Russian assets have been a no-go since Russia’s invasion, so the G7’s confirmation of a gold ban was a non-event. And that leaves gold where it began the week – in the middle of a choppy range.

Gold remains a traders market – which is vulnerable to false breaks and quick turnarounds on little news. This means range-trading strategies are preferred until we see a catalyst which instils some life back into markets. Key zones to watch reside around 1800, 1820, 1840 and 1845/50.

FTSE 350 – Market Internals:

The FTSE 100 didn’t quite reach 7300 yesterday, but it made a valiant attempt to reach it with a high around 7280. Given the several layers of resistance between 7298 – 7313, the reward to risk ratio appears inadequate for bullish setups around yesterday’s close.

FTSE 350: 4037.48 (0.69%) 27 June 2022

275 (78.35%) stocks advanced and 69 (19.66%) declined
5 stocks rose to a new 52-week high, 0 fell to new lows
19.66% of stocks closed above their 200-day average
49.57% of stocks closed above their 50-day average
8.26% of stocks closed above their 20-day average

Outperformers:

+ 7.91% - ICG Enterprise Trust PLC (ICGT.L)
+ 6.47% - abrdn Private Equity Opportunities Trust plc (APEO.L)
+ 4.97% - Chrysalis Investments Ltd (CHRY.L)

Underperformers:

-3.02% - Helios Towers PLC (HTWS.L)
-2.84% - Babcock International Group PLC (BAB.L)
-2.41% - Aston Martin Lagonda Global Holdings PLC (AML.L)

Economic events up next (Times in BST)

How to trade with City Index

You can easily trade with City Index by using these four easy steps:

Open an account, or log in if you’re already a customer

• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
Search for the company you want to trade in our award-winning platform
Choose your position and size, and your stop and limit levels
Place the trade

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.