Two trades to watch FTSE, WTI crude oil

FTSE set to open higher on falling US treasury yields, US stimulus progress. WTI petroleum rises on economic recovery optimism, Iran news
FTSE jumps 1% on falling yields US stimulus progress

FTSE futures are pointing to a stronger start out of the blocks amid an upbeat mood within the market.

The FDA approval of the round Johnson & Johnson covid vaccine and therefore the House of Representatives passing the Biden administration’s $1.9 trillion stimulus package has overshadowed a drop by China’s factory output growth.

UK manufacturing PMI data for February is due later this morning. Expectations are for the ultimate revision to tick higher to 54.9 within the final reading up from 54.1.

Earnings in the week are due from big names like Taylor Wimpey, Persimmon, Fresnillo and Flutter Entertainment.

Where next for the FTSE?

The FTSE bounced off support of its ascending 3 month trendline of Friday and is extending the move higher before the ecu open.

Whilst it trades above its 100 sma on the daily chart remains below the 50 sma and therefore the RSI is additionally in bearish territory. Suggesting a mildly bearish bias. Although the bears would wish to interrupt through the trendline at 6460
Whilst the trendline holds, the bulls will look towards the 50 sma at 6600 with a move beyond here bringing 6700 last week’s high into focus. Past this level the bulls could gain momentum targeting 6810 the yearly high.

On the downside 6460 is offering strong support. this is often not only the trendline support but also a horizontal support which limited losses on several occasions across February.
WTI rises on economic recovery optimism & Iran news

US petroleum prices rose for a 5th straight month in February as investors still cheer the continued economic recovery and therefore the prospect of a vaccine led economic reopening.

On Friday the Baker Hughes total rig count rose by 4 after falling by 1 the previous week.

Attention will address this week’s OPEC+ meeting with chatter surrounding a production hike is increasing.

Iran rejects the EU’s invitation for nuclear deal talks.

Where next for WTI?

WTI trades within an ascending channel dating back to late January. It also trades above its 50 & 20 sma on the daily chart and therefore the RSI is supportive of further gains until it enters overbought territory.
The bulls would wish to push past the Doji candle formation at the 13-month high of $63.71 so as to focus on $65.90 the upper band of the ascending channel & high from 2019.

On the flip side immediate support are often seen at 6150 the lower band of the channel before $60.00 the key psychological level and $59.80 the 20 sma.