US30
Looking at the technical situation on the Dow Jones (US30), one can see that the index has been trading in an upward trend recently. Buyers managed to break above the resistance area at 34,400 pts and it should act as a key support from now on. According to the classic technical analysis, as long as the price sits above it, the further upward move is the base case scenario. The nearest important resistance lies at 34,820 pts, where the local double top formation has formed. However, should bears manage to take over and the price falls below the 34,400 pts area, downward correction may be deepen. The next support to watch lies near 34,100 pts, where the previous price reactions are located. One should also pay attention to the lower limit of local 1:1 structure (33,810 pts).
US30 H4 interval. Source: xStation5
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Secondly, let’s take a look at the German DAX (DE30). Looking at the H4 interval, we can see that the recent upward move slowed down. The buyers reached the resistance marked with the 127.2% Fibonacci exterior retracement of the recent downward correction started mid-April, where sellers took over. However, long-term sentiment remains upward and the bigger downward correction may occur only once the price breaks below the 15,515 pst area marked with previous price reactions. Should sellers manage to take the price below the aforementioned support, the 65-period moving average (purple line) may act as the next potential target for market bears. One should also pay attention to the lower limit of 1:1 structure - 14,975 pts and the horizontal support at 14,800 pts.
DE30 H4 interval. Source: xStation5
OIL.WTI
Oil market has been trading in an upward trend for a long time. However, sellers managed to halt upward movement at the key short - term resistance, which is marked with the 161.8% Fibonacci exterior retracement of the recent downward correction started in mid-May. Should a downward correction be launched from here, the nearest support to watch can be found at the lower limit of the 1:1 structure (the biggest correction during the whole upward move started on 21th of May). According to the Overbalance methodology, as long as the price sits above the $69.30 support, one should expect continuation of the upward move. Otherwise, the negation of aforementioned 1:1 geometry may lead to a bigger downward move. In such a scenario the $68.55 and $66.10 areas are the next potential supports.
OIL.WTI H1 interval. Source: xStation5
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