Daily Review for February 17, 2021
Yesterday’s was a significant drop in the gold market, which is a glimpse of the interest of investment funds in fixed income
European stock market opens negative. Today the ECB will present its monetary policy strategy
On Wall Street, the Dow Jones set record highs driven by its energy companies
Nasdaq 100 is looking for 14,000 points. Bulls are gaining on current trading volume
| GOLD -0.24% |
| During yesterday’s session, gold witnessed a strong sell-off, which led to the price breaking the 1,800 support. It is currently down 0.24% and is trading at 1,789. The main reason for the fall was the significant increase in Treasury bond yields. The yield on the 10-year bond reached 1.30%. For today, the market expects gold to recover towards the level of resistance 1. However, the Bears are ready to continue selling towards the level of support 2 and 3. |
 |
| Support 1: 1,780.62 Support 2: 1,766.98 Support 3: 1,730.79 Resistance 1: 1,816.82 Resistance 2: 1,839.37 Resistance 3: 1,875.56 Pivot Point: 1,803.17 |
| Price is below the Ichimoku cloud. The RSI is entering the oversold level. At the moment the price is trying to recover the level of 1.800. However, the sales volume in the metal continues to increase. Pivot point for trend change at 1,803. |
| DAX 30 -0.52% |
| European market opens lower. The German index is currently down 0.52% and is trading at 13,954. The index broke the 14,000 support. During this week we will not have any macroeconomic data announcements, therefore the markets will be oscillating between supply and demand forces. The DAX will also be attentive to the performance of the Euro and the trend set by Wall Street. |
 |
| Support 1: 14,005.5 Support 2: 13,991.0 Support 3: 13,962.0 Resistance 1: 14,049.0 Resistance 2: 14,078.0 Resistance 3: 14,092.5 Pivot Point: 14,034.5 |
| Expected trading range between 13,962 and 14,092, with pivot point at 14,034. Bulls are defending the 14,000 level. However, the general market correction is driving the price towards support 3. |
| DOW JONES -0.12% |
| Dow Jones closed yesterday at an all-time high of 31,522. In the futures, the index corrected during the Asian session. Price is currently at 31,433. The market has not set a trend, but investors are optimistic about the decline in global covid-19 cases. The economic sector that boosted the Dow Jones yesterday was Energy. Companies that are part of this sector witnessed significant increases in their share prices, driven by the strong winter in the USA and Northern Europe, which boosted crude oil, Brent and natural gas prices. |
 |
| Support 1: 31,434.1 Support 2: 31,419.8 Support 3: 31,391.6 Resistance 1: 31,476.6 Resistance 2: 31,504.8 Resistance 3: 31,519.1 Pivot Point: 31,462.3 |
| Expected trading range between 31,391 and 31,519. Price formed a shoulder head shoulder pattern, before entering into a consolidation stage. The index is entering into the Ichimoku cloud and the Bulls are trying to gain momentum to take the index to resistance 2. |
| NASDAQ 100 -0.04% |
| Nasdaq 100 attempted to start a rally to all-time highs, but the rise of US Treasury yields slowed the momentum. This happened as investors sold part of their positions in the index and put the cash flows into fixed income. Despite the index’s negative close yesterday, Bulls have their sights set on 14,000 points. |
 |
| Support 1: 13,747.38 Support 2: 13,738.26 Support 3: 13,724.64 Resistance 1: 13,770.12 Resistance 2: 13,783.74 Resistance 3: 13,792.86 Pivot Point: 13,761.00 |
| The level of 13,500 points is marking a long level. The price is currently above the 50-day moving average. It is also recovering from yesterday’s decline and the RSI is below the overbought level, indicating that the current trading volume is from the Bulls. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
Risk Disclaimer
Any information/articles/materials/content provided by Capitalix or displayed on its website is intended to be used for educational purposes only and does not constitute investment advice or a consultation on how the client should trade.
Although Capitalix has ensured that the content of such information is accurate, it is not responsible for any omission/error/miscalculation and cannot guarantee the accuracy of any material or any information contained herein.
Therefore, any reliance you place on such material is strictly at your own risk. Please note that the responsibility for using or relying on such material rests with the client and Capitalix accepts no liability for any loss or damage, including without limitation, any loss of profit which may arise directly or indirectly from the use of or reliance on such information.
Risk Warning: Forex/CFDs trading involves significant risk to your invested capital. Please read and make sure that you fully understand our Risk Disclosure Policy.
You should ensure that, depending on your country of residence, you are allowed to trade Capitalix.com products. Please ensure that you are familiar with the company’s risk disclosure.