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Oil Is A Range Trader's Dream

Published 25/07/2016, 15:35
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Today’s technical outlook video is on FTSE 100, crude oil, iron ore, gold, USD/JPY, and BHP Billiton (LON:BLT), with Mike Van Dulken, Head of Research at Accendo Markets, and Zak Mir, Technical Analyst at Zak’s Traders Cafe.

Highlights:

FTSE 100 - Onwards and upwards for the equity markets, but it’s a worrying sign how markets are able to easily move on amid horrible events. FTSE 100 inching higher.

US crude oil – Oil is officially now within the $40-50 range..a range trader's dream. Trades needs to be on the chart rather than rig count, which is a lagging indicator.”

Iron ore – Iron shows a possible head and shoulder pattern.

Gold - If we want equities to keep rising we need gold to break the rising trend line at $1310. Don’t see the urgency to raise rates as easing by ECB, BOJ is pushing USD higher, which means the policy tightening is already happening in the US.

USD/JPY – Yen a difficult currency due to its safe-haven appeal. If we get some extreme easing in Japan then we could go higher.

BHP Billiton – Horribly volatile, and sees a head and shoulders pattern on charts.

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