Daily Review for June 04, 2021
US crude oil stocks and reserves have decreased more than expected and with this, the price of WTI is on the verge of USD$70 per barrel.
The FED announced that it will start selling corporate bonds next week.
The Nasdaq 100 and the market indexes corrected after the announcement.
Dow Jones is sideways at the moment, while the NFP and US unemployment rate results are announced.
Christine Lagarde and Jerome Powell will present their views on the economy and the ECB and FED strategy for the market. Tapering and interest rates are expected to be the main topics to be discussed.
Gold is waiting just above support 1 for more volatility in the market.
The metal could play an important role in investors’ portfolios in the coming days.
| CRUDE OIL +0.25% |
| According to the IEA report, the reduction in US crude stockpiles was confirmed. Inventories fell by 5 million barrels vs. the 2.4 million expected by the market. This reduction favored the upward trend of the price, which is currently up 0.25%. A barrel of WTI benchmark oil is currently trading at USD$69.01. |
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| Support 1: 68.65 Support 2: 68.46 Support 3: 68.30 Resistance 1: 69.00 Resistance 2: 69.16 Resistance 3: 69.35 Pivot Point: 68.81 |
| The price dropped a few points from the resistance 1 at 69.48. At the moment it is trying to overcome it; however, traders’ fear is a double top formation approaching 70 per barrel. Trading range between 68.30 and 69.35. Pivot point at 68.81. RSI near overbought zone. |
| NASDAQ 100 -0.05% |
| The FED announced that starting next week it will begin selling its corporate bond positions. In this way, a signal was sent to the market that tapering has begun. Following the announcement, there was a significant impact on the Nasdaq 100 index, which closed yesterday with a drop of 1.03%. Traders are waiting for a good NFP data to turn the trend around. |
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| Support 1: 13,491.16 Support 2: 13,479.70 Support 3: 13,459.78 Resistance 1: 13,522.54 Resistance 2: 13,542.46 Resistance 3: 13,553.92 Pivot Point: 13,511.08 |
| Price is between support 1 and the pivot point. Expected trading range between 13,459 and 13,553. Pivot point at 13,511. Bears are looking for the 12,000 area. RSI neutral. |
| DOW JONES +0.02% |
| Traders are aware of the NFP data, where 650,000 new non-farm jobs are expected to be created in the US. The unemployment rate is also expected to be 5.9%. If both data surpass market expectations, we could see a rebound in global indices. Otherwise, we could expect corrections. For the moment, the Dow Jones is taking sideway while the trend is being defined. Today we will have speeches from Christine Lagarde and Jerome Powell. |
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| Support 1: 34,530.6 Support 2: 34,494.8 Support 3: 34,470.6 Resistance 1: 34,590.6 Resistance 2: 34,614.8 Resistance 3: 34,650.6 Pivot Point: 34,554.8 |
| Expected trading range between 34,470 and 34,650. Pivot point at 34,650. RSI neutral. Price is between resistance 1 and support 1. Sideways movement is expected before the NFP announcement. |
| GOLD +0.14% |
| Investors are waiting for the NFP data and the US unemployment rate. As well as speeches by Christine Lagarde and Jerome Powell. Important tapering and interest rate announcements are expected. The FED decision to start selling corporate bonds from its portfolio has sent a signal that interest rates may rise sooner than expected. Therefore, gold could be at an important pace in the coming days. |
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| Support 1: 1,870.66 Support 2: 1,865.98 Support 3: 1,863.36 Resistance 1: 1,877.96 Resistance 2: 1,880.58 Resistance 3: 1,885.26 Pivot Point: 1,873.28 |
| Expected trading range between 1,836 and 1,885. Pivot point at 1,873. RSI neutral. Price is bouncing off support 1 and heading towards resistance 1. Bulls are looking to regain 1,900. If the NFP data does not meet expectations, gold could move towards 1,950. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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