Brent Crude chart is showing a break out of the potential bull flag over the course of this month. The break has not been clean with a messy retest and a failure so far to move above 8000.00. This level is now key to market direction. Equally important is the Point of Control at recent support 7723.80. Resistance can be seen at 7950.00 with a break higher to 8162.50 potentially setting up a retest of 8000.00. Above this area resistance may be found at 8400.00.
Support can be seen around the 50 and 100 DMAs at 7535.00. The 100 DMA was used recently as support and a loss of this area hand control to sellers. Below this area support is a distance down with the potential for price to drop quickly to the 200 DMA at 7275.00 followed by the 7231.00 level. The low at 7048.84 was the third touch on the falling support trend line.
Dax moved higher yesterday as relief that the US tariffs on China were not as bad as expected. This rally is extending higher this morning with price currently trading at 12190.00 ahead of 12200.00. Support for the pair can be found at 12100.00 which is now a key level for price to remain above. A loss of this area can result in a retest of 12000.00. If this level fails then a drop to the recent low at 11860.00 or a retest of the falling black support trend line at 11820.00 may follow. A break down under this area targets support at 11700.00 followed by 11680.00.
Resistance on the chart can be seen at the cluster of Moving Averages from 12340.00 up to 12538.00. The falling resistance trend line features at the latter level with a break out above here sending a strong bullish message to the market. Further resistance can be seen at the 12880.00 lower high. The 13000.00 may provide resistance on a move above this point with the highs from May and June at 13200.00 the ultimate target for bulls on this leg higher.