August 24, 2021 7:34 AM
The Dax heads up alongside European competitors, building on profits from the previous session amid optimistic market sentiment as concerns about the Fed’s waning support ease.
The German economy grew in second quarter faster than expected, GDP was 1.6% QoQ versus 1.5% forecast. Annual GDP rose from an originally estimated 9.2% to 9.4%.
The Dax bounced off its 50 sma on the daily chart last week, expanding its gains towards 16,000 and new all-time highs, with the Bulls in the driver’s seat.
The RSI is pointing north and is in the bullish territory, which supports further price gains. However, watch out for the bearish divergence on the RSI, which suggests momentum may be losing momentum.
Strong support can be seen at 15650, the 50 sma, which has been solid support this year. A break below that could bring the Sma 100 into focus, a break below could undo the short-term uptrend.
Oil continues to push higher, extending a 5% rally on Monday after the US did its first full Approved approval for a COVID vaccine.
The BioNTech / Pfizer vaccine was fully approved by the FDA after receiving emergency clearance in December.
Vaccination rates are expected to be increased by moving to hesitation in some areas of society, which increases the optimism of higher demand.
Elsewhere, demand in India rose to a 3-month high, while demand in Asia as a whole remains subdued due to the spread of the delta variant .
Last week’s inventory levels likely contributed to the bullish sentiment surrounding oil. API inventory data is due later.
Crude oil is expanding its gains, attempting to rise above its 50 sma on the 4 hour chart and descending trendline in early July.
The bullish MACD combined with the breakout suggests there may be more upside potential.
Bulls are looking for 69.40, the horizontal resistance and the 200 sma. Beyond $ 70.00, the round number becomes the new target.
On the other hand, failure of a significant break above 65.80 could be the 50-Sma, 65.00 August 9th low and 64.00 August 20th Providing some support high before the August low of 61.50.
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