OIL.WTI
Let’s start today’s analysis with the oil market. Commodity has been trading higher recently. Investors bet that reopening of major economies will gradually bring oil demand back to pre-crisis levels. Looking at the H4 interval, one can see tha oil has been trading in an upward trend since April 22. Market has a problem with breaking above the resistance at $34.50 but is not in danger right now. As long as price sits above $31.00 further upward move is possible. To talk about a downward move, price would have to pull back below the trendline marked with blue colour on the chart below. Should it do so, the downward move could deepen and the first support to watch will be the aforementioned $31 handle.
OIL.WTI H4 interval. Source: xStation5
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Technical situation on the British pound also looks interesting. Looking at the H4 interval one can see that GBPUSD broke above the downward channel and the sentiment has turned bullish. According to the Overbalance methodology, as long as the pierce sits above the support at 1.2260, trend remains upward. The pair reached 50% Fibonacci retracement of the recent downward move yesterday but buyers defended the area and continuation of the upward move may be on the cards now. In such a scenario, the next key resistance to watch is the zone at 1.2430, where the next Fibonacci retracement and previous price reactions are located.
GBPUSD interval. Source: xStation5
DE30
Last but not least, let’s take a look at the German index. Looking at the H4 interval, the index is trading in an upward trend. Price broke above the key resistance at 11330 pts yesterday and gains accelerated. DE30 is trading above the 127.2% exterior retracement of recent downward correction. The nearest sport to watch can be found at 161.8% exterior retracement of the recent upward correction. However, one should also take into consideration an area at 12,250 pts which should act as a supply area. Anyway, the ongoing upward trend is very strong and robust and so far, there are no signs that it could end in the near-tern.
DE30 D1 interval. Source: xStation5
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