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Market Outlook: Oil market is ‘very unstable’, says Russian energy minister

Oil supplies are ‘plentiful’, says Saudi energy minister
May 20, 2019

Saudi Arabia and OPEC members slashed output at the beginning of this year to prop up the price of crude oil. Now tensions between them and Iran have led to the evacuation this weekend of Exxon Mobile employees from the Qurna 1 oilfield in Iraq, just 20 miles from the Iranian border. All non-essential US embassy staff have been ordered out of Iraq and yesterday a rocket landed near it in Baghdad.

Because last week China’s Huawei was added to the US’s ‘entity’ list (read blacklist), Google has been forced to suspend delivery of software and technical services to the smartphone maker. A spokesperson for Google said: ‘’we are complying with the order and reviewing the implications’’.

DAX 30

Two consecutive weekly hanging man candles at the neckline of the huge head and shoulders top are not a bullish signal.

 

SHORT TERM TRADER: Square.

 

POSITION TAKER:  Square.

FTSE 100

An understandable bounce from Fibonacci 38 per cent retracement support last week, but recovering a bit more than we had allowed for.

 

SHORT TERM TRADER:   Square.

 

POSITION TAKER:  Short at 7275; stop above 7400. Target 6875.

S&P 500

A large doji candle on Fibonacci 23 per cent retracement support last week, after the previous one’s hanging man are really not bullish signals.

 

SHORT TERM TRADER:  Short at 2880; stop above 2960. Target

 

POSITION TAKER:   New short at 2866; stop above 2900. Target 2740.

BRITISH POUND/US DOLLAR

A bad week for cable as we edge towards this year’s lower levels.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

EURO/US DOLLAR

Bumping along the bottom at levels last seen in the summer of 2017. Austria has had to call a new general election as the vice-chancellor, and Freedom Party ally, was caught in a corruption sting. Also, worth keeping an eye on Ukraine where today a 41-year-old comedian takes the reigns.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

GOLD

A shooting star candle last week with a peak just under the 50 per cent retracement resistance level suggests we have found an interim high. Now it’s time to test trend line support.

                            

SHORT TERM TRADER:  Short at 1287; stop above 1297. First target 1270.

 

POSITION TAKER:  Square.

Nicole Elliott is a long-standing member and Fellow of the Society of Technical Analysts and has taken over the IC’s trading coverage.  She is regularly interviewed and quoted by the financial media, is a conference speaker, and author of several books on charting.