Two trades to watch: Dax, WTI crude oil

Dax in holding pattern ahead of ECB minutes. WTI crude oil eases back from $62, uptrend remains in tact.





DAX in holding pattern ahead of ECB minutes, confidence data

After an uninspiring session on Wall Street & in Asia the Dax along with its European peers edging mildly higher.

Earnings from Airbus & Daimler are in focus.

ECB meeting minutes and Eurozone consumer confidence due later today.

Dax technical analysis

After rallying firmly since early February, the Dax has been range bound. The index is capped on the upside by 14184 all time high and capped on the downside by 13890.

The price trades below its 20 & 50 sma on the 4 hour chart a bearish indication and the RSI is also in bearish territory supportive of further downside.

However the Dax is encountering strong support at 13890 and has so far failed to break below this level.

Should the bears manage a meaningful move below this support, support at 13575 (low 25th Jan & 5th Jan) could be tested.

Should the lower band of the horizontal channel hold then a recovery would look to test resistance at 14050 the 20 & 50 sma could prior to another attempt on the all time high of 14184.

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WTI crude oil eases back from $62.00, uptrend still in tact.

WTI has been pushing higher as US crude output is affected by the deep freeze in the largest oil producing US state.

Texas oil refineries remain shut for a 5th straight day, roughly 1 million barrels a day of output has been lost

A larger than anticipated draw in US crude inventories added to supply concerns

WTI crude oil technical analysis

WTI is easing back from a fresh 13 month high of $62 hit overnight but the bullish uptrend remains intact. 

The RSI pull-backed from overbought territory so an easing of the price was on the cards although this could be considered by the bulls as a buy the dip opportunity.

On the upside resistance can be seen at 62.55 the upper band of the ascending channel. Beyond her the September 2019 high of 63.10 could test the bulls ahead of 65.45 last year’s high.

On the downside, 60.00 the round number and lower band of the ascending channel offers support ahead of 57.00 the 50 sma. Below here the sell off could gain traction towards the 200 sma of 54.55.

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