Trading insights: Government intervention is largest market risk, EU on slippery slope
Chart 1 illustrates the Italian FTSE MIB index sell-off after Italy announces “40%” tax on 2023 “extra” profits on Italian banks.
Commentary: Recent notable events of government intervention:
- March 2013 - EU member Cyprus government confiscates cash from private bank accounts.
- August 2023 - EU member Italy imposes levy on private business “extra profits” eg. 40% tax on any private Banks “winfall” earnings.
Government intervention is when a government deliberately takes action to influence natural market forces.
Bottom line: Investors and traders when making any investment decision should always be aware of the sometimes not so obvious risk in financial markets.
Trade safe and enjoy your trading experience.
Today’s economic calendar
WTI Crude Oil in spotlight:
- Weekly US crude oil inventories due at 2:30 pm UTC
Source: TradingView / J. Knobel August 9 2023 7:21 AM UTC
WTI Crude Oil - bullish conditions in play
Technical commentary: WTI Crude Oil
Valid uptrend observed on the WTI crude oil daily chart. This can be technically supported by the higher tops and higher bottoms price sequence on price (see chart T1, T2, T3 higher tops - B1, B2, B3 higher bottoms) , current price $83.48 is above its multi-week valid upward sloping trendline (see chart blue line below price), as well as the fact that current price is above its 200 day moving average (see chart).
Conclusion from a technical trading prospective long positions could be supported for possible upside price extension towards $87.40 extension (1.382 projection of the June 28,2023 - July 17th price swing), while downside risk below $76.40 could expose the lower key support spotted near the $64.20s.
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Not investment advice. Past performance does not guarantee or predict future performance.
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