BHP has carved out a small base pattern and making its way above the 50-day average. We see upside to the $58 area.
WTI Crude Oil pulled back to the confluence of hte support at the lower end of its regression trend channel, 50 and 200-day averages.
We are getting long WTI this morning based on the comments on the chart below.
Crude oil is at a 6-month high this morning with news that the U.S. says it will end Iran sanction waivers. This puts WTI above the MFU-4 level of $64 and opens the upside to our next target of $69. We would be adding to long exposure.
We will be traveling this week and not be publishing our Technical Tuesday piece but wanted to share a few thoughts on the S&P and WTI Crude Oil.
The DXY has gained upside momentum after a test of channel support, and we see it moving higher from here.
After pausing for four weeks in the MFU-3 area, WTO has now cleared above that level which now opens the upside to the MFU-4 target in the $63-$64 range.
Following up to yesterday's bullish note on Crude Oil, we wanted to highlight a few names within the space that jump out to us as very good long ideas.
The DXY remains above support with improving upside momentum. On the other side of the coin, we have the EURO hitting our initial target at 1.115 and remaining in a firm downtrend. Momentum remains very weak.
The DXY is making its way above an important resistance area, and we expect it to trade higher from here.
We are taking a long position here with the expectation that momentum remains firm and we can see a move above $1350.
The DXY has pulled back to an important zone where the probability of a rally is 80%.
Our upside target has been achieved and we are taking profit on our longs and putting on a tactical short. Comments on chart below.
Copper has cleared a big resistance area at 2.86 which open the upside target of 2.97.
The next few days will be very telling for both the DXY and EURO. The overall bias for the EURO is weak and we are looking for a short-term rally to sell into.