Technical Analysis – GER 30 index extends losses to eye 2-year low
Posted on November 20, 2018 at 11:15 am GMT
Andreas Georgiou, XM Investment Research Desk
The Germany 30 index is declining for the third straight day and is currently trading not far above its lowest since December 2016 of 11,047.80 hit in late October.
The Tenkan- and Kijun-sen lines are negatively aligned in support of a bearish bias in the short term.
Additional declines may find support around the near two-year nadir of 11,047.80; the area around this also encapsulates the 11,000 mark that may be of psychological significance. Below, the zone around 10,800 that halted advances numerous times in 2016 could act as support. Even lower, the region around 10,500 which was congested in 2016 may be of importance.
On the upside, resistance could occur around the current levels of the Tenkan- and Kijun-sen lines at 11,369.65 and 11,449.15 respectively. Further above, a barrier may be found around 11,559.39, the 23.6% Fibonacci retracement level of the downleg from 13,205.80 to 11,047.80. More bullish movement would bring the current level of the 50-day moving average line at 11,755.22 within scope.
The medium-term picture is clearly bearish: the index is in a downtrend, recording lower highs and lower lows. Additionally, price action is taking place below the 50- and 100-day MAs, as well as below the Ichimoku cloud.
Overall, both the short- and medium-term outlooks appear negative at the moment. For perspective, the index is down by 16.5% in 2018. .
0 203 hours ago
Technical Analysis – WTI crude futures consolidate after hitting 9-month low
Posted on November 20, 2018 at 9:11 am GMT
Melina Deltas, XM Investment Research Desk
West Texas Intermediate (WTI) futures advanced slightly above the nine-month low of 54.80 after the sharp sell-off in the preceding week but is trading in a narrow range of 55.25 – 58.15. Prices are trading within the 20- and 40-simple moving averages (SMAs) in the 4-hour chart, which are heading for a bullish crossover in the near future.
According to the technical indicators, the MACD oscillator is rising in the negative zone, while the RSI indicator is pointing down slightly below the 50 zone.
Should the price manage to strengthen its rebound on the multi-month low and surpass the 40-SMA, it could find resistance at the 58.15 barrier. Further improvement could drive oil prices until the 23.6% Fibonacci retracement level of the downleg from 76.90 to 54.80, around 60.00 before re-challenging the short-term falling trend line.
Alternatively, if the price continues to head lower the market could push the oil until the 55.25 support, before touching 54.80. More decreases could open the door for the 52.80 support, reached on September 2017.
Overall, WTI crude has been developing in a strong bearish tendency after the bounce off the 76.90 resistance, failing to post a significant upside retracement.
Lesson #1: This is a sign of money. See the red lines, those are candles. This is an hour chart so each candle is an hour. Get in at 1st red candle and ride it down in this down trend. Your pennies make dollars. DM ME to learn. #makemoneyonline#learntotrade#earnandlearn#forexbeginners