Summary:
- Bull market on Wall Street is not over yet
- TNOTE pulls back towards the support level
- WTI crude (OIL.WTI) trades above the resistance level
Upbeat sentiment is still present on the global financial markets. This is especially true when we take a look at the US stock market. Following the latest batch of better-than-expected Chinese data as well as some promising remarks made in relation to the ongoing trade conflict, S&P 500 (US500) pushed higher and distanced away from the support level at 2800 pts handle. Having said that, the odds that US500 will test its ATH in the nearby future increased significantly. 50-session moving averages channel and the aforementioned 2800 pts handle should serve as the closest support level while the all-time-high around 2940 pts handle can be seen as the target for bulls.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Source: xStation5
Situation also looks interesting on the US debt market. 10-year Treasuries (TNOTE) are seen as some kind of a safe haven asset therefore the latest increase in risk appetite can be named as the cause of the latest price drop. From a technical point of view, TNOTE pulled back towards the level marked by the local peak from the turn of the year. The area around $125 handle should be seen as the nearest resistance zone as the 61.8% exterior retracement level of the upward move started in September 2018 can be found there.
Source: xStation5
Last but not least, let’s take a look at the oil market. Oil prices are buoyed by the appetite for riskier assets as well as rumours saying that the OPEC+ group may extend the output cut agreement. In turn, WTI (OIL.WTI) price broke above the 61.8% Fibo level of the latest downward move and the resistance zone marked by the local lows from mid-2018. Moreover, commodity is trading above the 200-session moving average as well, what further highlights bulls’ strength. This moving average should serve as a support level in case a deeper correction occurs. When it comes to potential resistance levels traders should pay attention to $69-70 area as 78.6% Fibo level can be found there. However, it should be noted that strong upward momentum poses risk of a sharp correction occurring later on.
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
