Daily Review for February 9, 2021
Market optimism. Bulls are winning the game, pushing Wall Street to all-time highs
New coronavirus vaccine developed by United Biomedical Inc. generates good expectations in the market
Bitcoin breaks resistance at 42,000 and is pushing towards 50,000
Crude oil continues to rally, driven by supply fundamentals
| DOW JONES -0.01% |
| Dow Jones at record highs on the back of the Treasury Secretary’s announcement that with the USD$1.9 trillion economic stimulus package, the U.S. will once again reach full employment. The index has been rising for 6 days. Part of this has also been due to the effect of vaccines and a lower number of infections globally. In the meantime, the index is heading towards the level of 32,000 points. |
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| Support 1: 31,243.4 Support 2: 31,235.7 Support 3: 31,220.4 Resistance 1: 31,266.4 Resistance 2: 31,281.7 Resistance 3: 31,289.4 Pivot Point: 31,258.7 |
| At the moment the index is trading at 31,262. The price is above the Ichimoku cloud. Bulls are now focused on 32,000 points. If they reach this level, the next target would be 32,505 equivalent to 127.2% of the Fibonacci extension. Pivot point for trend change at 31,258. |
| NASDAQ 100 -0.09% |
| Like the Dow Jones, the Nasdaq 100 is at record highs. Indexes momentum was generated in part by a new vaccine against the coronavirus developed by a subsidiary of United Biomedical Inc. According to the results of the vaccine tests, it is 100% effective. This pushed the index up to the current level of 13,668 points. |
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| Support 1: 13,670.54 Support 2: 13,667.20 Support 3: 13,661.28 Resistance 1: 13,679.80 Resistance 2: 13,685.72 Resistance 3: 13,689.06 Pivot Point: 13,676.46 |
| The index is consolidating in the actual price level and is heading towards the 127.2% level of the Fibonacci extension at 13,723. Next level to watch is 14,215. Expected trading range between 13,661 and 13,689. Pivot point at 13,676. |
| BITCOIN +21.80% |
| Bitcoin reached record highs, trading at 47,657 at the moment. The cryptocurrency was boosted by Tesla’s announcement that it had invested USD$1.5 billion in Bitcoin. Bitcoin is currently up 21.80%. Tesla also announced that it will start accepting Bitcoin as payment for its cars. |
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| Support 1: 45,394 Support 2: 42,456 Support 3: 37,196 Resistance 1: 50,000 Resistance 2: 55,000 Resistance 3: 60,000 Pivot Point: 37,542.57 |
| At the moment the price continues with bullish momentum. We could see some pullbacks towards the supports 1 and 2 as the gains from long positions materialize. Expected trading range between 37,196 and 55,000. Pivot point at 37,542. |
| CRUDE OIL +0.64% |
| Crude oil is getting closer and closer to USD$60 per barrel. This could be achieved today due to fundamental factors such as production cuts by OPEC+ members and the announcement of the new vaccine. On the other hand, Brent crude oil has managed to break the resistance and is currently trading at USD$60.97 per barrel. Today we will have the short-term energy forecast from the EIA. |
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| Support 1: 55.57 Support 2: 54.76 Support 3: 53.5 Resistance 1: 56.84 Resistance 2: 57.3 Resistance 3: 58.57 Pivot Point: 56.03 |
| If the price manages to break the resistance of USD$60 per barrel, the next level to watch is USD$65. If it fails to consolidate this point, we could see declines towards support 2 and 3. Pivot point at 56.03. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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