Two trades to watch: Dax ahead of GFK data, WTI extends selloff
Fiona Cincotta December 22, 2020 6:52 AM
Dax remains under pressure on covid strain fears. Could GFK consumer confidence data send the index lower? US spending bill fails to boost WTI.
Europe saw its worst session in over a month as fears of the new covid strain hit saw investors take risk off the table.
News that US Congress has agreed $900 billion covid rescue package and $1.4 trillion government spending package saw US markets pair losses.
Could weak GFK data send the Dax through 13040?
• Dax futures extending sell off on covid fears
• German GFK expected to decline to -9.5 from -6.7
US stimulus bill fails to boost WTI
• WTI is extending losses on Tuesday, adding to steep losses from Monday as a new strain of covid in the UK triggered concerns over fuel demand recovery.
• The UK has tightened its lockdown measures and a growing number of countries have closed their borders to UK freight and travelers.
• Congress’ approval of giant US spending bill could offer some support
• Look to API inventory data later in the session.
WTI slid sharply lower in the previous session falling through its steep ascending trendline which dates back to late October.
WTI found support at the 20 sma on the daily chart at around $46.40 rebounding off this level to settle around $1 higher.
WTI is once again trading on the back foot and is looking to test the 20 sma and yesterday’s low of $46.40. A break through here could negate the near term bullish trend opening the door to a deeper sell off towards $44.00.
It would take another leg lower towards 50 sma at $42.50 to negate the medium term bullish outlook.
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.