Two trades to watch: WTI oil, DAX
Fiona Cincotta November 12, 2021 3:29 AM
Crude oil struggles around $80.00. DAX flat as DTE raises outlook EZ industrial production due.
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.
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.
How to trade with FOREX.com
Follow these easy steps to start trading with FOREX.com today:
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.