Two trades to watch: Nasdaq, WTI oil
Fiona Cincotta October 26, 2021 3:02 AM
Nasdaq extends gains with Microsoft, Alphabet earnings due. US crude oil eases ahead of API stockpile data.
Nasdaq extends gains with Microsoft, Alphabet earnings due
The Nasdaq close closed 0.9% higher in the previous session, helped along by a 12% jump in Tesla following an order from Hertz for 100,000 EVs.
Today more earnings from big names such as Microsoft and Alphabet are due.
Data wise the key focus will be on US consumer confidence which is set to decline to 108.3 from 109.3.Learn more about the Nasdaq
Where next for the Nasdaq?
The Nasdaq has extended its rebound off 14600 hit October 12, retaking both the 50 & 100 sma. The index trades above a steep rising trendline from this date.
The price breaking out above resistance at 15500 and the bullish RSI point to further upside to come.
A break above 15700 is needed for fresh all-time highs to be reached.
There are several points of support near term, starting with 15500 the mid-September high. Break through here could open the door to 15425 the rising trendline resistance, exposing the 50 sma at 15200. A break below this level could negate the near-term uptrend. It would take a move below 14600 for the sellers to gain traction.
US crude oil eases ahead of API stockpile data
WTI crude pulled back from 85.26 a 7 year high reached yesterday and trades mildly under pressure below 84.00.
Broadly speaking fundamentals remain supportive amid strong demand in the US and the ongoing energy crisis. Whilst China’s intervention into the power and coal markets have seen prices cool slightly, global energy prices still remain elevated amid the onset of winter in the northern hemisphere. Goldman Sachs sees oil prices reaching $90 by the end of the year.
Traders look ahead to the release of weekly stockpile data from the API. Crude stockpiles are expected to have risen by 1.7 million.
Traders are also awaiting the outcome of talks between Iran and the West after comments from the US that talks were at a crucial phase.
Separately, Saudi Arabia’s aim to reach net zero by 2060 could challenge the bulls.Learn more about trading oil
Where next for WTI oil prices?
The strong rebound from the 61.20 low in late August remains intact. Oil continues to trade within the multi-month ascending channel.
After hitting a 7 year high and the upper band of the rising channel the price has eased lower. The RSI is in over bought territory so a move lower or some consolidation is expected before further gains towards $90.
Meanwhile, support can be seen at 80.70 last week’s low and 79.71 the lower band the rising channel and the 21 sma which could be a tough nut to crack.
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.