Oil continues decline, indices try to bounce

By Tomasz Wisniewski|

Published: April 27 2023, 08:33 GMT+0

Oil continues decline, indices try to bounce


Wednesday brought along a further drop on the indices with S&P 500 and Dow Jones making new, mid-term lows. Thursday, on the other hand, brought us a small bounce which looks quite promising so far and might be the start of a new up-trend. Out of the major indices, Nasdaq caught the eye as here, the price is currently fighting to defend the key support on the 12900. Sellers tried to break it a few times but each time, they faced a fierce defense.

A lot was happening on the oil field yesterday. Both WTI and Brent managed to close the bullish gap from the beginning of the month – a scenario that we were expecting and promoting for quite some time. Both types of oil are currently trading below 80 USD/bbl. This drop will hopefully be seen at the petrol stations soon but, of course, it will not happen instantly.

On the Forex market, we are not observing any interesting moves. The sideways trend continues on the EURGBP and GBPUSD. Apparently, traders are waiting for some kind of impulse for the Pound. I guess for that, we will have to wait until next week. In today’s calendar, the key data is the GDP from the US expected to come at 2%. Apart from that, it will be quite an unusually uneventful Thursday.

In case you are looking for a more fundamental stimulus, you should check out the earning calendar in the US. Yesterday, we found out the Q1 numbers of Meta Platforms that were better than expected. The results came after the session, so we are still to see their impact on the price. After-hours trading gives a dose of optimism to the buyers as currently, it looks like today’s open will be 10% higher than yesterday’s close.

The Q1 numbers will be presented by Amazon and Mastercard today. Amazon is currently trading close to the long-term down-trendline, and a good number can give us a breakout and a major, long-term buy signal.

Source: https://www.axiory.com/analytics/market-news/oil-continues-decline-indices-try-to-bounce