Two trades to watch: oil ahead of OPEC meeting, FLTR after MGM Resorts Entain bid

Oil is advancing, hitting a fresh multi month high as OPEC is expected to keep production capped. Flutter Entertainment was a standout performer in 2020 and is kicking off the new year in a similar fashion amid consolidation in the sector.

Energy 3

Oil Hits 11 Month High, $50 up next?

  • Oil is advancing firmly on expectations that OPEC+ group could cap output at current levels until February amid concerns that covid could keep demand in H1 depressed.
  • Broader market trends such as a weaker US Dollar and investor positioning for a recovery in the oil markets are also helping to lift crude.
  • OPEC sees crude demand rising 5.9 million bpd to 95.9 million bpd this year, although demand risks are skewed to the downside in H1 2021.

Technicals

WTI trades at $49.50, a 2.7% gain. On the day. It trades over its 20, 50 and 100 sma on the 4 hour chart, and has broken out of the narrowing price range in place since 21 December.

The RSI is bullish and not yet in overbought territory suggesting that there could be more upside on the cards and a test of the key $50 level. 

After $50 resistance there is little in the way until $52.50 a level last seen 24th Feb.

Failure to break through $50 could see immediate support at $49.28 (Dec high) come into play prior to $48.65 descending trend line support and $47.80 to negate the current uptrend.

Learn more about trading oil & commodities.

Flutter Entertainment Share Price Extends Rally After Stellar 2020 

  • Whilst the pandemic hit physical casino’s and betting shops hard, online gambling has seen a surge in popularity. Flutter Entertainment was a top performer on the FTSE in 2020 up over 65%.
  • 2 years ago GVC Holdings, now Entain Group bought Ladbrokes in $5 billion deal. Over the weekend, the Wall Street Journal reported that MGM Resorts plans to buy the company.
  • Deal making in the sector has also been a key feature over recent years and hopes of further consolidation could lift the share price higher. 

Technicals

Flutter Entertainment has traded within an ascending channel since later May. It broke out of the upside of the ascending channel in December and remains above the said trendline, suggesting more upside could be on the cards. 

The RSI is also favouring the bulls as it trades in bullish territory over 50 but not over the key 70 overbought level.

Immediate resistance can be seen at 15800p the yearly high ahead of resistance an all-time high an round number of 16000p.

Immediate support can be seen at 14825pascending trendline resistance turned support, prior to 13900p 50 sma and an important support at 13025p the confluence of the lower band of the ascending channel & 100 sma.

Learn more about trading shares


More from Oil

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.