Fundamental News: October 28, 2013
The Census Bureau in the United States disclosed last Friday that Durable Goods Orders grew more than expected in September. Orders increased 3.7 percent, much higher than the median forecast of 1.7 percent and the prior month’s 0.2 percent gain. Improved demand for military and commercial aircraft outweighed the decline in business-related equipment. On the other hand, Core Durable Goods Orders eased 0.1 percent during the same period, following a 0.4 percent decline in August.
The Revised University of Michigan Consumer Sentiment reflected concerns of consumers related to the recent partial shutdown of the US federal government. The index slipped to 73.2 in October, following a 75.2 reading back in September.
Today, a typical Monday saw a quiet Asian session. Add to that the fact that New Zealand is observing its Labor Day celebration.
In the United Kingdom, the Confederation of British Industry announced that Realized Sales disappointed with a reading of only 2 in October, a huge drop from the 34 reading posted back in September. Analysts were expecting sales momentum to continue with a 33 reading.
Later, we will witness the release of US Capacity Utilization Rate, Industrial Production, and Pending Home Sales.
Bulls indeed celebrated as they were able to clinch a second consecutive bullish weekly close just this past week. The weekly right at $1,350 would be their ticket for a move toward, and possibly past, the $1,400 level. Downside support should remain solid around $1,300 to prevent delays to their bullish campaign.
A giant price drop not seen in many weeks has transpired in Oil last week after the $100 level yielded to bearish pressure. The decline halted soon after breaking the $96 level, followed by a quick recovery into the $97s. Bulls would now have to contend with a potentially thick layer of resistance around $100-$104.