Daily Review for August 11, 2021
S&P500 looks to confirm the bullish rally. Everything depends on the US inflation data.
Decisive day for gold. The price will set the trend depending on the level of hedging needs of Hedge and Institutional funds.
German inflation met market expectations. In Europe, traders are aware of the Italian and Portuguese CPI. However, they are waiting for the US CPI to review the trend.
The FED could confirm the start of tapering today depending on macroeconomic data.
Cryptos confirm the bullish rally. Coinbase outperformed market expectations. Bitcoin surpassed USD$46,000. The US Congress continues to evaluate the regulation of cryptos.
| S&P500 -0.09% |
| The S&P500 closed yesterday with a rise of 0.10%, reaching the trading price of 4,436. In futures, the index is currently down 0.09%. Today, traders are aware of the US inflation data. It is expected to be 4.3% in annual terms or 0.4% for the month of July 2021. The Fed’s inflation target is 2% per year. Depending on today’s outcome, we could see some tapering discussion. If we are still far from the inflation target, economic stimulus could continue in the market. |
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| Support 1: 4,432.3 Support 2: 4,431.6 Support 3: 4,430.6 Resistance 1: 4,434.0 Resistance 2: 4,435.0 Resistance 3: 4,435.7 Pivot Point: 4,433.3 |
| The price is above the 200-day moving average. Sideways movement above the 4,433 zone. If the inflation data beats expectations, the price could mark an uptrend and head towards the high Bollinger band zone at 4,450. Pivot point for trend change at 4,433. |
| GOLD +0.01% |
| Gold may show interesting movements today, due to the performance of US inflation. According to the FED, the inflation target of 2% per year is close. Analysts, however, see a high level of liquidity in the market, which means that the inflation figure could exceed market expectations. For the time being, the price of gold is still trading sideways, awaiting investors’ interest. This could lead to a buying volume by hedge funds. |
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| Support 1: 1,733.29 Support 2: 1,731.72 Support 3: 1,730.89 Resistance 1: 1,735.69 Resistance 2: 1,736.52 Resistance 3: 1,738.09 Pivot Point: 1,734.12 |
| Gold price continues to move sideways above USD$1.731. There are two options. That the volume to cover the portfolios, pushes the price towards the USD$1,766 and USD$1,798 area and the other scenario is that the inflation data is low, with which, the price could fall towards the USD$1,684 area. |
| DAX 30 -0.10% |
| In Europe, the market is aware to inflation data from Germany, Italy and Portugal. On the German side, the country met market expectations, reaching a level of 0.9% in July 2021. Investors are aware now to the U.S. CPI, which may create a global market rally or correction, due to its direct impact on economic stimulus. The market also continues to watch Biden’s infrastructure plan, which may generate a global reactivation of market demand. |
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| Support 1: 15,761.9 Support 2: 15,757.7 Support 3: 15,752.9 Resistance 1: 15,770.9 Resistance 2: 15,775.7 Resistance 3: 15,779.9 Pivot Point: 15,766.7 |
| DAX 30 remains above the 15,780 level. The index is trying to define the bullish channel. The indices in Europe maintain the uptrend, so the German index could start looking for the 15,840 area. Expected trading range between 15,752 and 15,779. Pivot point at 15,766. |
| BITCOIN +1.78% |
| Bitcoin price is up 1.78% today at the moment, confirming the bullish rally. The price reached the level of USD$46,000. Coinbase’s financial results exceeded market expectations. Reaching an EPS of 6.42 over 2.31 expected and an operating income of USD$2.23 Billion over USD$1.73 Billion expected. The stock is up 0.82% in the pre market, reaching a trading price of USD$271.88. On the other hand, the US Congress continues to work on the regulatory framework for cryptos. |
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| Support 1: 45,864.6 Support 2: 45,639.3 Support 3: 45,462.3 Resistance 1: 46,267.0 Resistance 2: 46,443.9 Resistance 3: 46,669.3 Pivot Point: 46,041.6 |
| The price is at the double top at USD$46,589. If it manages to overcome this resistance, it could climb towards USD$50,000. Expected trading range between USD$45,462 and USD$46,669. Pivot point at USD$46,041. Pivot point at USD$46,041. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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