Two trades to watch: FTSE, WTI crude oil
Fiona Cincotta May 23, 2021 10:49 PM
FTSE looks set to head higher in a quiet session, with minimal news flow over the weekend and a quiet economic & earnings calendar. WTI crude oil is paring some of last week's losses as the revival of the Iran nuclear deal hits problems.
FTSE heads higher on quiet data day
The FTSE, along with its European peers is heading higher on Monday after a solid end to trading on Wall Street on Friday.
News flow over the weekend was light and both the earnings calendar and economic calendar are bare today.
There is bank holiday in parts of Europe.
Where next for the FTSE?
The FTSE continues to trade within an ascending trendline dating back to late January.
Last week the FTSE probed the lower band of the ascending channel. However, repeated moved to this support have not resulted in a deeper pullback.
The fact that the lower band support also coincides with the 50 sma means that it is proving to be a tough nut to crack which could help the index remain within the channel and provide a base for a possible move higher.
A move above the descending trendline dated back to early May could see the FTSE advance towards 7100 high May 18 and 7150.
It would take a move below 6910 the 50 sma and the lower band of the ascending channel for the sellers to gain traction.
WTI crude oil prices move higher as Iran nuclear talks hit problems
Oil prices are recouping some of last week’s losses as potentials hitches start to emerge in reviving the Iran 2015 nuclear deal, which would have added more oil supply to the market.
The US Secretary of State Blinken stated that there was no sign that Iran is willing to comply with nuclear commitments. This is a further blow to progress rumours as Iran prepares to end UN watchdog’s access to nuclear sites
Meanwhile rising covid cases in Japan, the world’s fourth largest importer of oil, where just 4% of the population is vaccinated, is acting as a drag.
Learn more about the factors which move oil prices
Where next for WTI crude oil?
WTI crude oil managed to rise back above its 50 sma on the daily chart and ascending trendline dating back to late January, which it briefly moved below last week.
Whilst the trendline holds, buyers could remain optimistic of a move back towards 6700 the May high.
A move back below the ascending trend line at 63.50 and the 50 sma at 62.50 could prompt a deeper sell off towards 60.00 the 100 sma.
How to trade with FOREX.com
Follow these easy steps to start trading with FOREX.com today:
- Open a Forex.com account, or log-in if you’re already a customer.
- Search for the market you want to trade in our award-winning platform.
- Choose your position and size, and your stop and limit levels.
- Place the trade.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.