Two trades to watch: DAX, WTI oil
Fiona Cincotta September 27, 2021 2:39 AM
Dax rises post election and as Evergrande fears ease. WTI oil trades at 2 month highs.
Dax rises post elections, Evergrande risk eases
German election results show a narrowing win for the centre left SPD party. However, coalition talks will begin. SPD leader would need to form a coalition with FDP and the Greens. They differ on several critical issues.
Angela Merkel’s SPD party could still hold onto power if they collaborate with the FDP and the Greens.
Talks top form a new government could go on for months. However, the inclusion of business-friendly FDP soothes concerns over substantial regulation.
The broad mood in the market also supports gain in equities as Evergrande fears ease.
Where next for the Dax?
Last week the Dax slipped to its 200 sma on the daily chart before rebounding higher.
The Dax is looking to retake the 50 sma at 15700. The MACD appears to be forming a bullish crossover, supportive of further upside.
A break above this level and 15765 last week’s high and the falling trendline support could see the index look to target 16000 once again.
Failure to retake the 50 sma could see the price test 15450 September 9 low ahead of before bringing 14950 the 200 sma back into target
Oil trades at 2 month high
Oil prices are on the rise for a fifth straight day amid supply tightness and draws on inventories. US inventories ae at the lowest for two years.
Rising gas prices are also helping drive oil higher as oil becomes a comparably cheaper alternative for power generation.
OPEC members are also struggling to raise output owing to under investment or maintenance delays from the pandemic.
Where next for WTI oil?
Oil prices continue to rebound from the August low of 61.72, building on gains from the previous week.
Oil is facing some resistance around 75.00 amid multiple top formations.
The RSI is supportive of further upside whilst it remains out of overbought territory.
Clearance of 75.00 could see the price test 76.64 and head towards 80.00.
Failure to clear 75.00 could see 74.00 the July 30 top over support ahead of 73.00 the September 15 high.
It would take a move below 69.50 around the 50 &200 sma to negate the near term up trend.
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.