Daily Review for February 10, 2021
Global markets open mixed. Asian indexes remain in the bullish zone. In Europe, indexes open in red, mainly due to a possible extension of the lockdown in Germany. Wall Street futures are in green
The S&P500 continues with bullish strength. It remains at all-time highs
Market is expecting a 1 million barrel increase in US inventories. If the report surprises the market, we could see today the price of crude oil above USD$60 per barrel
DAX reacts to the fundamentals and breaks the 14,000 support again
| S&P500 +0.33% |
| The S&P500 continues at the level of all-time highs. Yesterday’s long positions were not as aggressive as seen previously in the index. Yesterday’s JOLTS report showed that the US is generating new jobs. However, the unemployment rate continues to be at an important level. Likewise, the number of coronavirus cases in the US reached 27 million. Nevertheless, the index is currently trading at 3,918 and is up 0.33% from yesterday’s close. |
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| Support 1: 3,916.62 Support 2: 3,912.37 Support 3: 3,908.62 Resistance 1: 3,924.62 Resistance 2: 3,928.37 Resistance 3: 3,932.62 Pivot Point: 3,920.37 |
| Expected trading range between 3,908 and 3,932. Pivot point at 3,920. The uptrend continues. Price is above the Ichimoku cloud. RSI has not yet entered the overbought zone. |
| CRUDE OIL -0.24% |
| Crude oil is close to USD$60 per barrel. It is currently trading at USD$58.23 per barrel. Today we will have the IEA crude oil inventories report. Analysts are forecasting that inventories will increase by about 1 million barrels. Taking into account the OPEC+ cuts and the advance of the vaccine, the market expects that the demand for crude oil is starting to increase. If so, we could see a price above the resistance of USD$60 per barrel today. |
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| Support 1: 58.15 Support 2: 58.02 Support 3: 57.93 Resistance 1: 58.37 Resistance 2: 58.46 Resistance 3: 58.59 Pivot Point: 58.24 |
| Expected trading range between 57.93 and 60. Pivot point at 58.24. Bulls target is 62.21. In the worst case scenario, the price could return towards support No. 3. |
| GOLD +0.37% |
| The price of gold witnessed a V-shaped recovery, reaching again above the level of USD$1,850 per Troy ounce. The price managed to overcome the support of USD$1,786 per Troy ounce. Short-term correlation between gold and market indices is being lost. As long as the USD$1.9 trillion stimulus package is approved in the US, gold is expected to continue to gain additional points. |
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| Support 1: 1,843.99 Support 2: 1,842.02 Support 3: 1,840.24 Resistance 1: 1,847.74 Resistance 2: 1,849.52 Resistance 3: 1,851.49 Pivot Point: 1,845.77 |
| Price is now trying to break the resistance at 1,850. If it is broken, the next Bulls level is at 1.870 and then 1.881. Most optimistics see the price at 1,900. Expected trading range between 1,840 and 1,851. Pivot point at 1,845. |
| DAX 30 -0.27% |
| German index is currently down 0.27% and is trading at 13,964. The price returned to the level below 14,000 points. In Germany, the market is waiting for the government’s decision on whether or not to extend the lockdown. Today we will have inflation data from Germany and Portugal. We will also see industrial production data from France and statements from European Central Bank President Christine Lagarde. |
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| Support 1: 13,993.60 Support 2: 13,975.40 Support 3: 13,993.60 Resistance 1: 14,026.10 Resistance 2: 14,040.40 Resistance 3: 14,058.60 Pivot Point: 14,007.90 |
| Expected trading range between 13,993 and 14,058 points. Pivot point at 14,007. Price is below the Ichomoku cloud. The RSI is entering the oversold zone. Possible trend reversal, as long as the macroeconomic data from the European Union convinces the market. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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