CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Two trades to watch Dax WTI crude oil

Article By: ,  Senior Market Analyst
June 29, 2021 3:33 AM

Dax attempts to climb higher, German CPI, EZ & US consumer confidence in focus

European bourses are edging higher after more record highs on Wall Street. Asian shares were pressured by concerns over Delta variant. 

Attention will turn to German CPI data which is expected to show that inflation eased in June to 2.3% YoY, down from 2.5% in May. On a monthly basis CPI is expected to tick lower to 0.4% down from 0.5%. 

Eurozone consumer confidence could also impact on sentiment as could US consumer sentiment data due later 

Where next for the Dax? 

The Dax has been trending lower since reaching its all-time high of 15800 on June 15. The index trades below its two week descending trendline and below its 50 & 100 sma on the 4-hour chart.  

The 50 sma crossed below the 100 sma in a bearish signal. The MACD also appears to be forming a bearish crossover keeping the sellers hopeful. 

Support can be seen at 15500 a level which has capped losses several times in June. A break below here could see the sellers attach 15440. It would take a move below this level for sellers to gain traction and target 15270. 

Any recovery would need to retake the 50 sma at 15585 followed by 15630 the confluence of the 100 sma and the descending trendline, which could prove a tough nut to crack. Beyond there buyers could eye 15750 and then the all-time high beyond 15800. 

 

Oil ahead of API inventories 

Oil prices fell on Monday and downside pressure could continue as investors digest rising delta variant covid cases and look ahead to the OPEC+ meeting later in the week. 

The cartel will meet on Thursday where they are expected to increase supply by around 500,000 barrels per day amid the ongoing economic recovery. 

That said the highly infectious Delta variant of covid is unnerving the market as Australia enter a two week lockdown and the UK is struggling to contain it. 

API crude oil inventory data is due later today. 

Where next for oil prices? 

WTI crude oil is attempting to break below its ascending trendline dating back to late May. The RSI is forming a bearish crossover supporting further losses.  

Any move lower would need to meaningfully clear below the trendline support, which would open the door to 70.00 the key psychological level. A break below there could open the door to 67.70/40 zone the March 9 high and 50 sma. 

Failure to break meaningfully below the ascending trendline could see the oil price continue on its scent back towards 74.20 last week’s two and a half year high ahead of 76.80 the October 2018 high. 


StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website 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.

© City Index 2024