Daily Review for February 3, 2021
Wall Street drives the global market. US indexes rose more than 1%, boosted by strong results from Amazon and Google. Hedge funds won the battle yesterday against Wall Street Bets
The DAX is boosted and the Bulls want to break the 14,000 resistance
OPEC+ is considering additional production cuts, to let market demand recover
Nasdaq 100 heading for record highs
EURUSD depreciating and awaiting Euro Zone inflation data
| DAX 30 +0.32% |
| The German index managed to recover and continues in the upward channel to 14,000 points. Wall Street indexes showed significant gains yesterday. The Dow Jones rose 1.6% to over 30,600 points. Nasdaq rose 1.6% and the S&P500 rose 1.4%. Hedge Funds won the battle yesterday, evidenced by declines in Gamestop, AMC, Ripple, Dogecoin and silver. On the other hand, Jeff Bezos, founder of Amazon, announced his retirement as CEO of Amazon. Today we will have announcements from the ECB on monetary policy. |
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| Support 1: 13,878.4 Support 2: 13,866.2 Support 3: 13,855.9 Resistance 1: 13,900.9 Resistance 2: 13,911.2 Resistance 3: 13,923.4 Pivot Point: 13,888.7 |
| Expected trading range between 13,855 and 13,923. Pivot point for change in trend at 13,888. The price is above the Ichimoku cloud. Bulls maintain the target above 14,000 points. Bullish momentum caused by the Wall Street rally. |
| CRUDE OIL +0.79% |
| Crude oil price managed to end its consolidation above the support of USD$52 per barrel and is heading towards the resistance of USD$56. The price is currently up 0.79% and is trading at USD$55.20. Price increase is due to the announcements of the producing countries of additional supply cuts, as the market demand has not reacted so far. Yesterday’s API report showed that crude oil inventories decreased by 4.26 million barrels in the US. |
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| Support 1: 55.05 Support 2: 54.87 Support 3: 54.77 Resistance 1: 55.33 Resistance 2: 55.43 Resistance 3: 55.61 Pivot Point: 55.15 |
| Main support to consider is USD$51.75. Bulls are targeting USD$55 per barrel. Rise is driven by fundamental factors. For most producing countries, the current price level implies interesting profit margins. The problem is market demand. Pivot point at 55.15. |
| NASDAQ 100 +0.84% |
| Nasdaq 100 is currently up 0.84% and is trading at 13,555 points. Despite Elon Musk’s announcement to retire from Twitter for a while, the company’s stock closed yesterday with an increase of +2.54%. On the other hand, Google’s revenues were boosted by the demand for advertising services during the pandemic. The company reported revenues of USD$56.9 billion. Amazon also reported results that exceeded market expectations. They achieved sales of USD$125.56 billion. These results helped boost the price of Nasdaq 100. |
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| Support 1: 13,550.80 Support 2: 13,524.09 Support 3: 13,509.68 Resistance 1: 13,591.92 Resistance 2: 13,606.33 Resistance 3: 13,633.04 Pivot Point: 13,565.21 |
| Expected trading range between 13,509 and 13,633. Pivot point for change in trend at 13,565. Bullish momentum. Bulls’ next target is to break above the current level and take the index to all-time highs. |
| EURUSD -0.07% |
| The currency remains in downtrend, which indicates that it may continue to decline to the next support level. Fundamental data is affecting the currency’s performance, including the delay of vaccines in the European Union. Today’s CPI data from the Euro-Zone will be announced. |
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| Support 1: 1.2030 Support 2: 1.2022 Support 3: 1.2017 Resistance 1: 1.2043 Resistance 2: 1.2048 Resistance 3: 1.2055 Pivot Point: 1.2035 |
| The currency broke the 1.2060 support and quickly reached the actual price of 1.2037. Bears are looking for the 1.2000 area and then to push the currency down to 1.1950. Bulls will try to push the price up to the resistance at 1.2085 and then climb to 1.2100. Pivot point for trend change at 1.2035. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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