News & Analysis
Eightcap CFD technical insights 11/01/18
Several CFD indices have returned to familiar positions. US30 and Oil are consolidating after legs up. On the Stock side two new influences have entered the picture. NAFTA, will the US pull out? China and U.S treasuries are they going to stop their purchases? With the gains we’ve seen this year what could start a correction a sneeze or a cold?
US30 – 25,340 continues to offer short-term resistance to buyers. Regular divergence has developed but these have failed a few times during this trend. Reports coming out today are saying China rumor may turn out to be baseless. We’ve seen this situation several times during the last months,leg up, consolidation new leg up. Are we going to see more of the same and further new records?
GER30 – broke lower last night losing 110 points. Regular divergence has set up, for sellers a break of 13256 support level could set up a continued leg lower. If the current support level can continue to hold there’s potential for a continuation to develop with to test 13346.
Oil – crude and gasoline inventories failed get price moving last night. Buyers are consolidating after Mondays surge. We’ve seen this pattern on the last break out. Buyers should give the market some time, as the last consolidation did produce one deep retrancement. Divergence has redeveloped, solid evidence would be required before you started thinking short oil.
Good Trading from Eightcap.
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