Forex Trade Setups (London Close) Mar. 28th
Oil Sold Off Heavily on Reserve Comments, DOW & S&P Slide
Oil dropped almost $2 on the day, stopping at $104.69 after the old Allied powers of France, UK and the US all ventured into talks about releasing strategic reserves to push fuel prices lower and avoid additional pressure on already strained markets at home.
Meanwhile, the DOW is down 91pts or .69% on the day while the S&P is barely holding onto the 1400 mark down about 11pts or .82% likely due to the extended rally in the key indices as the Durable Goods number came in much softer than expected with inventories piling up suggesting the emperor has no clothes. Keep in mind, we have the 5 largest banks holding 95% of the derivatives exposure out there and three of those banks are in the US (food for thought if the derivatives market goes poof).
Precious metals gold and silver lost a lot of ground as well with gold breaking key support at $1669 (currently at $1663) which should put $1634 back in focus while silver is at $32.08 conceding the key short term $32.42 support level.
OIL – Stops At Key Support
Getting hammered on the day, US Oil has stopped its 4hr slide right at the same level ($104.67) it launched its previous upside attack on the $108 ceiling. Short term price action has held on this level, but its got a lot of ground before it suggests there are strong buyers here.
Look for price action triggers off the next level below at $103.92 should the current defenses fail but there is not enough in the current bounce intraday to suggest this is the Real McCoy so caution is advised for short term bulls.
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