Daily Review for April 14, 2021
Global market opens mixed. The indices in Asia mark bullish volume, mainly with the Kospi 200 and the Hang Seng. In Europe, the CAC 40 falls sharply – 0.80% and the EuroStoxx 50 turns positive (+0.18%). Futures in the US are in the green as investors await banks’ corporate results.
Dow Jones remains in uptrend. US banks push the index to record highs.
Gold recovers and remains above the USD$1,740 per Troy ounce mark.
Crude oil in an uptrend, mainly due to the reduction of US reserves.
Coinbase valuation is estimated at USD$100 Billion. Bitcoin could reach USD$70,000 depending on the performance of Coinbase’s IPO on Nasdaq.
| DOW JONES -0.04% |
| Market opens mixed. Investors await corporate results from major US banks. Today, we will have results from JP Morgan, Goldman Sachs, Bank of America, among others. Wall Street analysts expect positive results, as a consequence of the good performance of the financial sector during the pandemic. Also, during Q1, US indices have shown an important performance, generated by the increasing volume on equities trading. The Fear and Greed indicator is at level 51 out of 100, indicating neutrality. |
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| Support 1: 33,563.4 Support 2: 33,548.7 Support 3: 33,539.9 Resistance 1: 33,586.9 Resistance 2: 33,595.7 Resistance 3: 33,610.4 Pivot Point: 33,572.2 |
| Price is in the Ichimoku cloud and is bouncing from support 1. Expected trading range between 33.539 and 33.610. RSI neutral. Possible escalation towards 33.708. Pivot point at 33.572. |
| GOLD -0.03% |
| After the rebound from the level of USD$1,723, Gold price continues to move above the resistance 1. At the moment, the price is down 0.03% and is trading at USD$1,746.61. The market is aware to today’s speech from Christine Lagarde as ECB President and Jerome Powell as FED President. The presentation of both leaders is expected to be oriented towards inflation. In the meantime, gold price is gaining buying volume, as it is considered the natural instrument to hedge against inflation. |
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| Support 1: 1,741.89 Support 2: 1,739.87 Support 3: 1,738.64 Resistance 1: 1,745.14 Resistance 2: 1,746.37 Resistance 3: 1,748.39 Pivot Point: 1,743.12 |
| Price is at resistance 1. Possible ascending channel towards 1.754 and then 1.759. Trading range between 1.738 and 1.748. Pivot point at 1.743. RSI neutral. |
| CRUDE OIL +1.31% |
| After US crude oil stocks decreased by 3.6 million barrels Crude oil recovered the level above USD$60 per barrel. Today, we will have the IEA inventories report, where the market expects a reduction of at least 2.8 million barrels. If this is achieved, the price could continue the upward channel towards USD$61.75. The market’s main concern is the pause in the use of J&J’s vaccine due to possible clotting. |
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| Support 1: 60.91 Support 2: 60.75 Support 3: 60.66 Resistance 1: 61.16 Resistance 2: 61.25 Resistance 3: 61.41 Pivot Point: 61.00 |
| Crude oil reached the support level of 58.96, then rebounded towards the actual level of 60.99. Bullish outlook. The price is above the moving average. RSI is coming out of the overbought zone. Pivot point at 61. |
| BITCOIN +5.82% |
| Bitcoin price is up 5.82% at the moment and is marking upward momentum towards USD$70,000. Cryptocurrency rally, is due to the Coinbase IPO that is going to be held today on the Nasdaq. Buying volume also increased due to the inflation data in the USA (+1.6% y/y). Bitcoin, like gold, is making part of the investors’ allocation to hedge against inflation. |
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| Support 1: 64,091.8 Support 2: 63,626.0 Support 3: 63,297.6 Resistance 1: 64,886.1 Resistance 2: 65,214.6 Resistance 3: 65,680.4 Pivot Point: 64,420.3 |
| Expected trading range between 63,297 and 65,680. Price is above the short-term moving average and the Ichimoku cloud. RSI at 70, in overbought level. Pivot point at 64,420. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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