OIL
Let’s start today’s analysis with the oil market. Oil price surged following an escalation of war in Ukraine. Looking at the chart on the monthly interval, we can see that buyers managed to shoot the price above the 100$ per barrel. As long as the military conflict continues, the upward movement may continue. We should consider the zone at $127 as the next technical resistance, where previous highs and the 161.8% Fibonacci resistance are located. On the other hand, should the downward correction occur, the area near $89 remains a key long-term support. The psychological $100 level should also be considered as support.
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OIL W1 interval. Source: xStation5
DE30
Next, let’s look at the German index - DAX (DE30). Looking at the very wide interval - weekly, one can see that the recent sell off accelerated when the price broke below the important support at 14,800 pts and the sellers managed to take the price below the 1:1 geometry. However the downward move was stopped at the highs from February 2020 at 13,800 pts which are considered a key horizontal support. Important for a further direction in the short term will be whether the weekly candlestick closes above the 14,150 pts (1:1 geometry) or below 13,800 pts. Considering the bearish scenario, the next support for the market bulls defend will be the zone at 13,150 points, where the 38.2% Fibonacci retracement of the recent upward swing from March 2020 is located.
US500
Last but not least, let’s take a look at the US500 chart. The American index has been also trading in a downward move recently. The recent upward correction stopped at the 4,370 pts resistance level, which is marked with the 100-period moving average and previous price reactions. If the current bearish sentiment prevails, another attack on the support at 4,220 pts could be on the cards. On the other hand, if the bigger upward correction happens, the next resistance to watch lies at the 4,475 pts, where the upper limit of 1:1 structure is located. In addition one should pay attention to the downward trendline, which may also act as a resistance.
US500 H4 interval. Source: xStation5
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