Daily Review for February 4, 2021
OPEC+ committed to production cuts and the stabilization of crude inventories in the US, pushed up the price of crude oil to USD$56 per barrel
Despite Banco Santander’s poor results, the market believes in its restructuring plan and trusts in its execution. The IBEX 35 is currently rising
DAX 30 traders are still trying to overcome the resistance at 14,000 points. Despite this, economists assess the index’s performance and its influence on German pension funds
Silver continues its correction, and portfolio managers prefer to hedge risk with government and corporate bonds
Markets cheers “Super” Mario Draghi as Italian Prime Minister
| CRUDE OIL +0.81% |
| Highest crude oil price level of 2021, reaching USD$56.07 per barrel. Crude oil is currently up 0.81%. US crude oil inventories decreased by 1 million barrels last week. Favorable news for the market, which indicates that the US is working to balance the domestic energy market. The players hope that the vaccines will be given to the entire world population as soon as possible, so that there can be a new normality, with the opening of air and land borders, the reopening of trade and the continuation of the fourth industrial revolution. In this way, the demand for crude oil and its derivatives would increase. |
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| Support 1: 54.82 Support 2: 54.01 Support 3: 53.31 Resistance 1: 56.34 Resistance 2: 57.04 Resistance 3: 59.71 Pivot Point: 53.11 |
| During this week, the price broke the 54.66 resistance. The next resistance for the Bulls is 59.71. After reaching this level, the price could move up to 65. On the other hand, the RSI is at the overbought level, so there could be a correction to the 53.31 support. |
| IBEX 35 +0.79% |
| Wall Street indexes are close to record highs. The market has recovered well from the falls suffered at the end of last week. However, caution is beginning to be felt in the market. Traders are analyzing tomorrow’s NFP in the US. On the other hand, in Europe, the stock markets open in positive, with main increases in the DAX, CAC, FTSE, MIB and IBEX indices. Despite Banco Santander’s negative results, the market believes in its restructuring plan. |
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| Support 1: 7,998.4 Support 2: 7,981.7 Support 3: 7,964.4 Resistance 1: 8,032.4 Resistance 2: 8,049.7 Resistance 3: 8,066.4 Pivot Point: 8,015.7 |
| The index is just below the resistance at 8,063 points. Bulls want to take the index to 8,200. Long way, because there are still resistances to overcome at 8,080, 8,135 and 8,163. In case of a price pullback, the supports to watch are 7,964, 7,981 and 7,998. Pivot point at 8,015. |
| DAX 30 +0.40% |
| The German index is currently trading at 13,970 points and is up 0.40%. The main concern of German economists is the performance of pension funds in Germany. Although during the pandemic the index has performed well, many of the companies that make up the index have suffered from financial stress. Despite the low cost of capital, companies need demand to increase, especially aggregate demand, in order to balance the level of market risk. |
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| Support 1: 13,914.4 Support 2: 13,893.2 Support 3: 13,876.9 Resistance 1: 13,951.9 Resistance 2: 13,968.2 Resistance 3: 13,989.4 Pivot Point: 13,930.7 |
| The index is trying to overcome the 14,000 resistance, which it has been struggling at since the beginning of 2021. If the Bulls manage to defeat it, the next level to watch is 14,040. If market events do not favor, the price could drop to the 13,893 support. |
| SILVER -1.22% |
| Silver price is currently down 1.22%, maintaining the correction that started two days ago. It is trading at 26.53 after falling from an all-time high of 30, which was driven by the euphoria of Wall Street Bets. Silver continues to be one of the assets sought by portfolio managers to hedge portfolio risk in the face of strong volatility. However, for the time being, they have stayed away from the metal, waiting for the level of speculation to decrease. |
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| Support 1: 25.47 Support 2: 24.06 Support 3: 22.9 Resistance 1: 28.27 Resistance 2: 29.86 Resistance 3: 30.74 Pivot Point: 29.08 |
| Expected trading range between 22.9 and 30.74. Pivot point for trend change at 29.08. The price is below the Ichimoku cloud, which projects the price towards 27.65. The main risk for silver and gold is the rise of bond yields, an instrument that Portfolio Managers are preferring at the moment. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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