Oil Ends the Bullish Dream, Indices Close to Important Supports
WTI crude oil ended the streak of nine bullish days in a row. They ended that quite brutally, with a huge bearish candle. Currently the price is reversing but this is just a small take profit action from the sellers and the main movement (fall) should be continued. Well, at least it usually did, when we had such a sharp drop on this instrument before. Reversal did not happen in the random place. Sellers used the 50% Fibonacci and the resistance created by the lows from the beginning of the June.
SP500 is approaching a place where we do have a combination of few strong supports. We do have an up trendline and two horizontal: mid-term, 2420 points (green) and the long-term, 2405 points (grey). Once the price will get there, we have to look closely for a proper price action there. Any bullish reversal pattern can be a good start of a new bullish wave.
Your capital is at risk
DAX is doing much worse then colleague from the America. Here, the price broke the up trendline and is currently attacking the long-term support on the 12350 points. In theory that is a nice place to buy but so far we do not have any signal from the technical analysis so patient traders should rather wait. With their fingers ready of course.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis