What’s Wrong With The Market?
Dave Green • 1 min read
The New York session came with quite a sharp shift in many instruments. The Nikkei has fallen -0.37%, the crude oil is down by -0.86% and the precious metal gold has surged nearly +0.61%.
All this is exciting for us as our Trading Signals of Nikkei and WTI Crude Oil just hit the take profit.
What Exactly Has Happened To The Market?
Today, as I discussed in the live update report entitled, A Big Gap in the WTI Crude Oil – Is This a Signal? the crude oil was supposed to dip today or tomorrow to fill the huge gap. So here we are, the oil just dropped drastically by 95 pips and the wave is not over just yet.
WTI Crude Oil – Technical Outlook
Consequently, the global stock markets, particularly the energy sector shares have suffered a lot due to the massive drop in oil prices. A sell-off in the equity market initiates the safe haven appeal and investors move their investments to bullion market. This is why we have seen a strong buying trend in the precious metal gold.
However, right now, the sellers seem to be exhausted as the WTI crude oil has oversold as per the RSI which held below 30. The investors won't miss the opportunity to buy the oversold security.
Trade Signal: The crude oil may find support at $48.25, and I'm looking to enter the trade on that support to catch the retracement until $48.60 with a stop loss below $47.75.