Oil up, Trump’s opinion key to the market
The focus of investors was again oil prices, which rose more than 4 percent on WTI and Brent contracts after tensions in the Middle East and the return of exchanges of blows between Iran and the USA.
A significant impulse came from President Donald Trump’s statement that the ceasefire between Iran and the USA is effectively over, and that another night will bring an escalation of military actions by the US army.
It is therefore no surprise that in the first phase of the session the WIG20 fell sharply to the south along with the surroundings.
At the extreme point of the session the index was just under 5 points from support near 3600 points, but after two hours demand effectively countered supply and the WIG20 began to recover losses so effectively that it finished at the daily high.
KGHM shares fell 6.69%
The behavior of individual companies was relatively standard for days when players are concerned about rising oil prices. The supply side leader was KGHM, which fell 6.69 percent. The second session in a row, the tightening situation in the Persian Gulf helped Orlen shares, which rose 3.51 percent today and led the demand side.
A relatively neutral statement from the Monetary Policy Council did not harm banks, whose index gained 0.87 percent today on a falling market. From a technical perspective the session can be considered another failure of sellers.
In the initial phase of the distribution, supply strengthened with a perfect mix of falling, so falling shares in the surroundings, overvalued metals, a stronger dollar, rising oil prices and generally risk aversion, and finally demand effectively countered, resulting in the drawing of another candle with a lower shadow.
The southern direction still seems closed, and the WIG20 does not want to lose contact with resistance near 3700 points. It can be assumed that the improvement in the surroundings will translate into another test of resistance and a potential attack of the index to the top of the bull market.
