Charts of the Week: Massive drop in Oil prices, GER30 falls below another significant support level – Op Ed
USOIL had a massive gap lower at today´s market open following Saudi-Arabia´s decision to increase output despite reduced demand and therefore triggering a price war, say analysts at AxiTrader
The management team at AxiTrader take a look at oil volatility and the lows in the stock market this week
USOIL had a massive gap lower at today´s market open following Saudi-Arabia´s decision to increase output despite reduced demand and therefore triggering a price war. Usually, such weekend gaps are eventually filled, but in current market conditions it might take much longer for such a bounce to occur. Looking at the monthly chart, next major support can be expected around $27.30, while to the topside, resistance is seen between $39.50 and $40
Meanwhile, USD/JPY has found itself under strong pressure as investors remain highly risk averse and are fleeing into safe havens. Lower rate expectations in the US are weighing on the Greenback as well. Looking at the Monthly chart, traders can expect strong support at the 50 % Fibo of the 2011-2015 rally, which lies around $100.78, followed by the psychological support level of $100. To the topside, immediate resistance is seen at $104.60, followed by $105.
GER30 has breached another major support level overnight at 11,000 points, paving the way for further losses. A test of 10,850 support looks increasing likely in the near-term, and DAX bears see the 2018 low at 10,266 points as next significant target. To the topside, traders will be keeping an eye on the 11,255 resistance level, followed by 11,413 points.
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