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Nasdaq Retreat from 6-Week Highs as Oil Price Surge

Nasdaq Retreat from 6-Week Highs as Oil Price Surge
Nasdaq Retreat from 6-Week Highs as Oil Price Surge

Nasdaq started lower the week, giving up 0.15% at 8,165 after the drone attack on a Saudi Aramco oil facility. Oil spiked higher in what is likely to be one of the biggest one-day moves for oil. The outage is likely to reduce supply by more than 5% of global supply.

The Dow Jones Industrial Average is 0.49% lower at 27,083, while the S&P 500 trading 0.35% lower at 2,996. The CBOE Volatility Index (VIX) is adding 7.21% today at 14.73 to confirm the nervous market mood.

Nasdaq bullish momentum is intact despite today’s retreat, as the index trading above all major daily moving averages. On the downside, immediate support stands at 8,121 today’s low, then at 7,962 the 100-day moving average, while more bids will emerge at 7,908 the low band of the ascending channel. On the upside immediate resistance stands at 8,165 the daily high and then at 8,310 the high from August 1st. Traders looking to enter long positions can buy if the index manages to close above today’s high (8,165), targeting a break above 8,300 mark for profits, and can keep their long positions as far the index is trading above the 8,000 mark. A short position might be initiated if the index breaks below the 100 day moving average at 7,962. The technical analysis suggests a near-term bullish outlook for Nasdaq.

In Europe equity indices trading lower, the FTSE 100 is 0.48 percent lower at 7,343 as the pound trades at 1.2405. DAX 30 is 0.63 percent lower at 12,392 while CAC 40 in Paris is 0.69 percent lower at 5,616.Don’t miss a beat! Follow us on Telegram and Twitter.

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