 Hello and welcome to the weekly market update with me David Madden today's date is Monday the 20th of May 2019 and the time has just gone 1401 British summer time We've seen a fairly negative start to the European session very broad sell-off all across Europe It's essentially a continuation of the Story for the last few weeks whereby the trade tensions between the US and China Are essentially weighing on investor sentiment. Now keep in mind We did have a decent bounce back in the latter half of last week For the terms of European markets and we seem to be turning over again So this could be a process. This could just be kind of you know, potentially be be the beginning of the next leg lower You know the the trade talks between between the US and China as you saw the last week or two the empty has been upped and Now that Washington DC has effectively blocked Huawei The the Chinese company essentially from anywhere along the kind of US market evening kind of supply chain form anywhere along the line That's likely to kind of you know Keep keep keep a relationship between the two sides, you know, you know frosty at best So traders are sort of thinking about this trade situation could be prolonged on top of that There's been a political uncertainty in Italy and the coalition government that the the League of Party the North formerly the North Northern League and the anti-establishment faster movement there's All all it's not well between the two coalitions partners And that is that is actually really weighing on the may 40 at the end the footsie may 40 The Italian index has also feeding into the wider selloff in a euro so equity markets in terms of There's been any kind of you know made anything else There's sort of the main stories that we've been looking at On this on this Monday Take a look now what's going on at the major markets starting off with the the footsie with London's what we can see here is that Obviously we had the fairly severe sell-off between mid-April and particularly Last week basically last week we have had the recovery But if you can see here that the footsie hundred is back below the fifth day moving average and given that Sentiment is looking overall given that we're seeing about see a sea of red across Europe sentiment appears to be sour This this area here has the potential To be the lower high before we have we have another lower low So keep an eye out for this area here in around the 7,130 mark the lows of last week and notice is also Keep an eye also for the water they move the average seeing it did manage to act as support last week And if you manage to break below that we then be looking at printing your fresh multi-month lows And if you go up below that we can really head back down towards this area here, I'll have not seen since late February in at 7,040 That's on the on the premise that this could be the lower low This has potential to be a lower high before you potentially move lower again But if markets ended it does manage to turn around and if you do manage to get a press on higher from here We could really get target this region here in around 7,400 It's a big psychological number But also on a few occasions that act as support and also as resistance the general area only in the last few weeks And I move below 7,400 Okay, then take us back up towards potentially back up as towards the April highs in around 7,530 and move beyond that could the patient you take us back up to levels not seen since late September last year Taking a look now at the DAX is your market similar situation whereby the market had after hitting multi-month high in early in early May Had a quite aggressive sell-off received support from this area here in around for the 50 moving averages The blue line is also not this area here. This is a regional performance this region of former resistance turned supporting around 11,823 if we could hold above that it's possible that we could see the wider upper trend for the last few months continue But given that markets are turning over so you get slight increase in negative momentum on the MACD indicator of the MacD histogram If you do manage to trade lower from here and take out last week's last week's low That could be a sign that would refer the losses and it could take us back down towards this area here in around in around eleven thousand seven hundred this this region here Notice how that particular metric has been a fairly important metric Other in for quite some time just in around the kind of eleven thousand seven hundred mark it act as a support back in February 2018 and a few occasions and back to that book and both as As a resistance and also a support keep on out for that It also kind of coincides with the Trinity moving average which comes into play in around 11,650 so their entire region of 11,700 down towards 11,650 that could be construed Potentially I could be an area for a support should we move lower from here But if the market that the wider trend since late December does manage to actually Continue I keep an eye out for this area here last week's high of just just north just some in around the 12,000 318 region here and if you go beyond that you could be looking at retesting the upper highs in at 12,450 Take a look now. It's going on the Dow So as you can it's a very similar situation on the Dow Jones or by we've come off the highs that were reached in In early May the market has managed as a drifted lower. We have seen the subsequent rebound and But once again this area here could this could just be the pause before the next move to the upside But it could also equally be we've had the lower low This has the potential to be the lower high and then before moving lower yet again and if you take a look at the cans a couple of Red day for a red candle on Friday and also are today and Monday If you too much you're going to drift lower and turn lower yet again This area is where you keep an eye for in around the kind of turn of moving average Which comes to play a twenty five thousand four hundred and twenty six and just I just I'm just in this area here in Around twenty five thousand two hundred and thirty. We can see that that area act as very decent support last week If you manage to take out that area Then we could be looking for heading back down towards we could be like you heading heading down for further losses back down towards You cannot cycle out logically important twenty four thousand mark But if the wider upward trend that's been in place for the last few months does matter to continue The first day to keep an eye for the potential be this this blue line here the fifthly moving average in a 26,000 and 70 and if you go beyond that we could really be heading up towards the twenty six thousand four hundred region There's quite a bit of both support and resistance in that area not too long ago And then if you go beyond that we could be looking at heading up towards essentially retesting The speech retesting the April highs of in around the twenty six thousand seven hundred mark It's a fairly similar situation on the S&P 500 whereby Some of some of the gains are made at the back end of last week have been given up if this You know, we've already had multi year mod all-time highs achieved in May We've had the lower low this could have potential to be a lower high before we go lower again So keep an eye out for this area here in a two thousand eight hundred And I think the size of break below two thousand eight hundred We could be looking at a back down towards this area here in a two thousand seven hundred and eighty four But if you do manage to actually kind of press on higher from these current levels And we get back above the fifth of the moving average this blue line here in a two thousand eight hundred seventy We could be looking at our getting last looking at retesting last week's high in a two thousand eight hundred eight hundred and ninety two and a movie on that It could take us back up towards two thousand nine hundred and twenty this region here And then beyond beyond that we could be a retest retesting all-time highs So I'll take a look at what's going on in gold So the gold market receive it kind of the size of the boost this day last week I got up just north of of thirteen hundred when there's all the uncertainty in all the uncertainty in the Global stock markets, but since then it's kind of it's turned it's turned lower yet again So the market has given up both those games and heading back down to sort of now back to love that scene Since early March, so we're talking, you know two and a half week lows And if you look to kind of keep mind the wider train since February has been very much to the downside in the gold market So if you continue to press on lower from here, we could be looking targeting this region here in around 1266 And I move below that could potentially take us down towards this area here in around the 1250 region Essentially while we remain below the recent low the recent high of in around 1303 it's likely you could see further losses and if you do manage to take up 1303 We could be looking at rather a targeting via the mid April high of in around 1310 And then if you go beyond that you could really get targeting the mid March high in at 1324 that general region Take a look now at the oil market starting off with WTI one of the stories of the last 24 hours what the Saudi Arabia? Saudi Arabia indicated that There's consensus among OPEC to actually continue on with the cuts that have been in place so we had seen a tick off tick higher in the oil price and That's so that this fear is that demand is going to be squeezed and we're seeing a bit of a tick higher in the oil price So notice that we hit multi-month highs and late April the markets drifted lower Partially because of the trade on trade uncertainty But we notice that we actually are here to be pushing higher yet again And if you hold up all of this blue line here the 50 moving average which comes into play at 61 spots 79 We could see the market continue on in the wider upper trend Keep an eye for the 64 dollar region and if you go up a lot beyond that on WTI We could be looking at retesting the April highs in around a 66 spot 50 That being said if you do manage to actually turn over again And we take out the recent lows this this area here in around the kind of 60 bucks a bar region I could point to further losses It's a similar situation on Brent crude oil Where by the Brent crude oil market is getting decent support from from the 50 moving average Which comes to play at 70 spot 57 if you could hold above that We could look to press on higher from these these levels and we could head up toward this year We hear the the recent the April high in around 75 spot 71 But if you do manage to actually drift lower and even if you drop below the 50 moving average Keep an eye for this red line here the turn moving average was missing act as support and also active support in early April That metric comes into play just north of 69 dollars per barrel If you have a size of break below 69 dollars a barrel We could be looking heading back down towards this area here You know the kind of the mid-merch lows in around 66 dollars per barrel Take a look now at Euro dollar So your dollars been in a fairly clear downward trend in recent months Yes, I'm fully aware that the highs in March check out the highs in February, but keep in mind We didn't manage to print on multi, you know, you did the lows of April clearly take out the lows of March As you can see here We're gonna continue to be in light downward trend on a few occasions this blue line here a fifthly moving average Did manage to act as a areas of resistance and we're still holding and essentially while we hold below it here Which comes into play in around one spot 12? Forty ish while we hold below it It's likely we could see further losses and if you do press lower from here We could be looking at a to communicate targeting the late April low in at one spot 1110 and a move below that could take us down to 110 So we really need to take enough to have a very size of break above the fifth of the moving average Before we look to head towards 113 And if you head towards 113 keep on for this region here in around the one spot 1324 region and then if you go beyond that we could really get any backup tours You know 124 and then potentially the mid-march eyes Have a look now at the pound versus the US dollar. It's a pound dollar has essentially been in a pretty aggressive sell-off Most for most of the of the month of May we've moved firmly below The if you refer me below the trigger move the average we falling back to recently be falling back to levels not seen Since essentially the middle of the middle of January, so we're talking about, you know Not too far away from being there at four month lows if you look the press on lower from here You could be looking to track in this area in at one spot 2710 And a move below that could take us out towards the kind of one spot 26 region We can see a few occasions that the general kind of one one spot 26 one spot one spot Sorry one spot 26 20 area in around here did manage to act as support And any any moves to the upside are likely to run into resistance from it around the Trinity will be average which comes to play at one spot 29 57 and then beyond that The big kind of psychological number of one spot 30 and potentially come into play I'll take a look now at the week ahead If you go to our website cmcmarkets.com only the news and analysis section you will find our weekend article Looking looking from here. We can starting off from here on the you can see tomorrow home depot their first quarter figures out from home depot on Tuesday we have an HEM from Metro Bank on Wednesday, we have UK CPI also on Wednesday We give you a couple of updates from UK companies roll down a full your figures as do Marks and Spencer's and On Wednesday, we have the the minutes from the Lendis better reserve meeting On Thursday, we have German GDP. We have a Germany GDP of German GDP. We also have a German and French The the flash PMI PMI reports coming out On Thursday, we have first quarter figures from Best Buy and as we do first quarter figures from Kraft Heinz And also keep mind towards back in the week. We have the European with the EU elections So that's obviously going to be causing a lot of political talk And there's and there's speculation that Eurosceptic parties are going to gain a lot of ground in this particular election and finally on Friday We have first quarter quarter figures from Footlocker over in the US Just before I go if you've any comments to make on this video or any of the other videos We've made here at CMC markets, please feel free to leave review on Google views. Thank you very much