The morning does not start well for risky assets. The U.S. dollar and the Japanese yen definitely reign supreme in the market. Stocks and commodities, including oil, are being sold off. WTI crude is losing more than 1% today, which may be related to the problems of Chinese developers who are having trouble paying their obligations. This, in turn, raises concerns about the entire Chinese economy, which for many years has relied precisely on the construction market.
It is worth noting a very interesting thing on the technical side. The 200-period average is falling, while the 50-period average is rising, and it is likely that the two averages will intersect in the coming days. Theoretically, when the fast average crosses the slow average from below, this is a bullish signal indicating a change in trend. However, it is worth remembering that the averages themselves, especially such long-term averages, are a strongly lagging indicator. The last time they crossed, in September 2020, the price fell more than 15% from its peak, while it has fallen 12% since the crossing of the averages. At that time, the price also fell into a 2-month consolidation and new local peaks were reached only after 2.5 months.
Theoretically, counting from the last high, 15% of the downward movement falls around the level of $71.5 per barrel, which is below the most important support at $74.5 at the retracement of 61.8% of the last upward wave.
Source: xStation5
Silver surges 3% 📈Precious metals bull market momentum is back?
Morning Wrap: US–Iran Peace Talks in the Shadow of Trump’s Ultimatum
Daily summary: Oil slumps 8% supporting Wall Street, precious metals and EURUSD
Gold surges 3% amid falling treasuries yields and US dollar
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
