Morning Insights 6th May

Simon Alagbe

Analyst


Instrument: US100

Technical Analysis

Bullish Preference: Buy is envisage if price trades above 13581.48 with take profit at 13607.89.

Bearish Preference: Sell is envisaged if price trades below 13506.21 with take profit at 13478.48.

Fundamentals:   

Unemployment Claims (US)  1:30PM

Comment: World shares and commodity prices held firm on Thursday as investors switched to cyclical amid hopes of a strong economic recovery, but drugmakers' shares came under pressure after Washington backed waiving patents for COVID-19 vaccines. Biden's move hit U.S. vaccine makers, too, including Moderna (NASDAQ: MRNA), but gains in energy and other cyclical shares supported Wall Street overall.




Instrument: OILs

Technical Analysis

Bullish Preference: Buy position is envisaged if price trades above 69.39 with take profit at 69.57.

Bearish Preference: Sell position is envisaged if price trades below 68.78 with take profit at 68.57.

Fundamentals:

None with high Impact

Comment: Crude oil supply data from the U.S. Energy Information Administration (EIA) showed a draw of 7.990 million barrels for the week to Apr. 30. This beats the 2.346-million-barrel draw in forecasts prepared by Investing.com and the 90,000-barrel build reported during the previous week. Oil rebounded this year as major economies, including the U.S. and China, recovered from COVID-19 and increased demand for fuel. On the demand side, jet fuel usage is expected to jump 30% as Americans travel during the upcoming peak summer season.

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