Daily Review for February 22, 2021
Global market opens in red as a result of uncertainty about its short-term trend.
Commodities are in a bullish zone, mainly metals and energy. Traders start buying gold and silver.
In Sunday Bitcoin raised to record highs and Bulls are trying to push the price towards 60,000.
European market opens in red, with main declines in Germany, France and Italy. Today’s statement by the ECB could reassure the market.
US index futures follow the indexes in Europe. The Nasdaq 100 in heavy fall and the S&P 500 already exceeds 1% negative.
| GOLD +0.86% |
| Stock market week begins and Treasury yields continue to advance. Price of gold is up 0.85% and is trading above resistance 1 in 1,794. Over the weekend, cryptocurrencies made a significant advance; Bitcoin reached a new all-time high at 56,380. This has put pressure since last week on metals, which are looking to re-correlate with the market. Meanwhile, investors are attentive to the US economic stimulus plan, which could generate upward movements in gold, as it continues to be a hedging instrument against inflation. |
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| Support 1: 1,788.71 Support 2: 1,784.23 Support 3: 1,781.81 Resistance 1: 1,795.61 Resistance 2: 1,798.03 Resistance 3: 1,802.51 Pivot Point: 1,791.13 |
| Price has crossed the 50-day moving average. Expected trading range between 1,781 and 1,802. Pivot point at 1,791. If Bulls’ momentum continues, we could see price near resistance 2 at 1.805. |
| BITCOIN +0.38% |
| On Sunday, the Bitcoin reached record highs reaching a trading price of USD$58,354. During the Asian session, the price retreated to 55,714. It is currently trading at 56,244 and is up 0.38%. On Friday last week, a historic event was marked, as the Bitcoin market cap reached more than one billion USD. Market analysts are aware for a more significant correction in the price. They are evaluating more optimistic scenarios between support 1 and support 2. |
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| Support 1: 56,162 Support 2: 55,860 Support 3: 55,709 Resistance 1: 56,615 Resistance 2: 56,766 Resistance 3: 57,068 Pivot Point: 56,313 |
| Expected trading range between 55,709 and 57,068. Pivot point at 56,313. As long as the economic stimulus package is not implemented, we could see some additional upside points. In the meantime, the price is entering the Ichimoku cloud zone and is below the moving average. |
| DAX 30 -1.39% |
| Stock exchanges started the trading week down. In Europe, the DAX 30 is currently down 1.39% and is trading at 13,817. The market is hesitant about the stock market trend. Investors have been positively awaiting the economic stimulus package in the US, however, the delay of the package and the implications on inflation have made the market doubtful and have generated a rise in fixed income instruments. On the other hand, economists see the market tired and expect further corrections. Today we will have the German IFO and statements from ECB President Christine Lagarde. |
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| Support 1: 13,874.6 Support 2: 13,851.3 Support 3: 13,816.1 Resistance 1: 13,933.1 Resistance 2: 13,968.3 Resistance 3: 13,991.6 Pivot Point: 13,909.8 |
| Price broke the support 1 at 13,880 and the Bears are looking for support 2 below 13,800. If the selling strength continues, we could see a decline towards support 3 at 13,747. |
| S&P500 -0.89% |
| Wall Street futures begin the week in negative territory as a result of the high level of uncertainty in the market. This has increased the investors appetite for fixed income. Analysts are expecting global interest rate hikes as a measure to tighten the money supply and control inflation. However, that affects stocks in the short term. Meanwhile, the S&P500, as an indicator of the US economy, is currently down 0.89% and is trading at 3,862. |
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| Support 1: 3,867.80 Support 2: 3,858.71 Support 3: 3,844.92 Resistance 1: 3,890.68 Resistance 2: 3,904.47 Resistance 3: 3,913.56 Pivot Point: 3,881.59 |
| Price is below the moving average. Trading range between 3,844 and 3,913. Pivot point for trend change at 3,881. If the Bears continue the selloff, we may see a drop towards 3,800 points. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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