Two trades to watch: WTI oil, DAX

Crude oil struggles around $80.00. DAX flat as DTE raises outlook EZ industrial production due.

Energy 3

Crude oil struggles around $80.00

Crude oil struggled to rebound from the weekly low and is edging lower once again. This week has been a volatile week for crude oil.

The US Dollar is sitting at 16-month highs and inflation at 30 year highs, prompting expectations that the US could adopt measures to ease the price of oil such as releasing strategic reserves.

Whilst supply remains tight demand continues to rise, particularly as air travel and trans-Atlantic travel picks up.

OPEC cuts its demand outlook for Q4 by 330,000 barrels per day from last month.

Baker Hughes rig count data is due later today.

Learn more about trading oil

Where next for WTI crude oil?

WTI crude oil has been trending lower since October 25th. The price hit a low of 77.70 on 4th November and has been attempting to rebound.

However, failure to retake the 200 sma and the bearish RSAI suggests more downside could be on the cards.

Immediate support can be seen at 79.43 the weekly low. Beyond that the November low of 77.70 comes into play and 74.80 October 7 low.

Buyers need to see a move above the 200 sma at the 80.60 and expose the 81.30. A move above the falling trend line at $83.95.

Oil Chart

DAX flat as DTE raises outlook EZ industrial production due

The Dax is opening roughly flat along with its European peers in what is expected to be a relatively quiet session.

Concerns over the surprise jump in US inflation appear to be easing.

Deutsche Telecom beat forecasts for earnings and raised its full year outlook for the third time this year.

Eurozone industrial production data is due to show a contraction of 0.5% MoM in September, after -1.6% contraction in August.

Learn more about the DAX

Where next for the DAX?

The DAX is extending its rebound from 14750 struck at the start of October, the uptrend remains. The price has been in consolidation mode over the past week, holding above the key 16,000 level.

Buyers could look for a move above 16106 for a bullish breakout towards 16430.

Meanwhile sellers might look for a move below 15985 the weekly low to indicate further losses.

DAX chart  

How to trade with City Index

Follow these easy steps to start trading with City Index today:

  1. Open a City Index account, or log-in if you’re already a customer.
  2. Search for the market you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels
  4. Place the trade.

 

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.