Daily Review for August 16, 2021
Global downward pressure on commodities. China’s macroeconomic data did not meet market expectations. Ports begin to close operations due to the increase in Delta variant cases.
Crude oil falls sharply due to lower demand in the physical market. The market doubts OPEC projections.
Bitcoin reached USD$47,000. The crypto rally is confirmed. The next target for the Bulls is USD$50,000.
Global stock futures are in negative territory, mainly due to the Taliban takeover in Afghanistan, the increase of Delta variant cases and macro data in China.
| GOLD -0.44% |
| Commodities start the week with downward pressure generated by a lower industrial production index in China, which came in at 6.4% vs. 7.8% expected by the market. This means that China’s economy is slowing down, causing a decrease in the demand for commodities. The downward pressure is being reflected in all three segments, agriculture, energy and metals. Gold is currently down 0.44% and is trading at USD$1,772. Silver is currently down 1.05%, and is trading at USD$23.53. On the other hand, ECB President Christine Lagarde announced that she will not attend the annual conference of central bankers to be held in Jackson Hole at the end of August. |
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| Support 1: 1,772.64 Support 2: 1,770.78 Support 3: 1,768.49 Resistance 1: 1,776.79 Resistance 2: 1,779.08 Resistance 3: 1,780.94 Pivot Point: 1,774.93 |
| Gold is between resistance 1 and the pivot point. The price is slightly above the 200-day moving average. Expected trading range between USD$1,768 and USD$1,780. Pivot point at USD$1,774. Possible correction towards support 2. |
| CRUDE OIL -1.70% |
| The price of crude oil has fallen significantly at the moment, due to the decrease in the demand for physical oil from China, and the increase in cases of the Delta variant, which has forced the closure of several ports in the country. At this moment the price of crude oil is falling 1.70% and is trading at USD$67.11 per barrel. According to the IEA, crude oil demand decreased by 120,000 barrels per day in July 2021. This puts into question OPEC’s projections. On the other hand, the Taliban are taking control of Afghanistan. |
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| Support 1: 67.20 Support 2: 67.08 Support 3: 66.93 Resistance 1: 67.47 Resistance 2: 67.62 Resistance 3: 67.74 Pivot Point: 67.35 |
| The price is at support 1, with possible fall to support 2. Expected trading range between USD$66.93 and USD$67.74. Pivot point for trend change at USD$67.35. RSI in oversold zone. If the price breaks the current support, it could fall towards USD$65.40. |
| BITCOIN +1.82% |
| Bitcoin reached USD$47,000. At the moment the crypto is up 1.82% and is trading at USD$47,317. The crypto rally is confirmed, after a week of significant increases. Mark Cuban commented to CNBC that he supports Dogecoin, as it is a means of payment for goods and services. Buyers of cryptos maintain bullish positions, looking for further price escalations. The next target for Bitcoin Bulls is USD$50,000. |
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| Support 1: 47,474.5 Support 2: 47,338.9 Support 3: 47,271.2 Resistance 1: 47,677.7 Resistance 2: 47,745.5 Resistance 3: 47,881.0 Pivot Point: 47,542.2 |
| The price is at resistance 1, where it has an important ceiling to overcome. If it does, the next target level is USD$53,000. Expected trading range between USD$47,271 and USD$47,881. Pivot point at USD$47,542. RSI neutral, leaving the overbought zone. |
| DAX 30 -0.50% |
| Global stock futures are in negative territory. The three main factors that are pressuring down the markets are the Taliban takeover in Afghanistan, the increase in Delta cases globally and the macro economic data from China, which fell short of market expectations. At the moment, the DAX 30 is down 0.50% and is trading at 15,888. Pressure is expected for equities and commodities. Bond yields are also in negative territory at the moment. |
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| Support 1: 15,890.9 Support 2: 15,882.7 Support 3: 15,869.9 Resistance 1: 15,911.9 Resistance 2: 15,924.7 Resistance 3: 15,932.9 Pivot Point: 15,903.7 |
| Despite the market decline, the index is above the 200-day moving average. Expected trading range between 15,869 and 15,932. Pivot point for trend change at 15,903. RSI approaching the oversold zone. Possible sideways movement above the current zone as markets stabilize. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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