Daily Review for January 12, 2021
Wall Street Indexes closed negative yesterday. However traders have their analysis set on Biden’s economic plan, which will be announced on Thursday
Gold is holding above USD$1,850 per Troy ounce, but Bears are still watching Treasury yields and the US stimulus plan
Cryptos recovered some of yesterday’s big losses and are hoping to regain market capitalisation
Crude Oil is still on an upward trend, after further production cuts by Saudi Arabia
DOW JONES +0.30%
US stock market indexes closed negative yesterday, caused by the strengthening of the USD and political tensions in the US. The Fear and Greed Index is at 65 out of 100. Democrats initiated the second impeachment for President Trump.
On the other hand, companies such as Amazon, Facebook, and Google are designing strategies that will allow them to address the increased regulation by the new administration. Traders are watching Joe Biden’s economic stimulus plan, which will be presented on Thursday.
- Support 1: 30,940.6
- Support 2: 30,897.3
- Support 3: 30,875.1
- Resistance 1: 31,006.1
- Resistance 2: 31,028.3
- Resistance 3: 31,071.6
- Pivot Point: 30,962.8
The index is forming a bullish pattern. The price continues to be above the 25 and 50 day moving average. Expected trading range between 30,875 and 31,071. Pivot point at 30,962. Traders are aware of the economic plan of the new political administration in the USA.
XAUUSD +0.40%
The metal is currently rising 0.40%, and trading at a price of USD$1,858 per Troy ounce. Traders are watching Joe Biden’s economic plan to define the trend of Gold. If a much larger stimulus plan is presented than those proposed before, an upward movement in the stock market would be expected.
This would affect the price of the metal and in addition the increase in Treasury bond yields, could affect the short term support for the metal.
- Support 1: 1,856.86
- Support 2: 1,853.98
- Support 3: 1,852.16
- Resistance 1: 1,861.56
- Resistance 2: 1,863.38
- Resistance 3: 1,866.26
- Pivot Point: 1,858.68
Bulls try to defend the 1,850 support and target the 1,858 and 1,890 resistances, to try to recover the 1,900 level. Meanwhile, the Bears look for the 1,817 support before breaking the 1,800 barrier. Expected trading range between 1,852 and 1,866. Pivot Point in 1,858.
ETHEREUM +5.15%
- Support 1: 11,32.32
- Support 2: 11,25.35
- Support 3: 11,21.86
- Resistance 1: 11,42.78
- Resistance 2: 11,46.27
- Resistance 3: 11,53.25
- Pivot Point: 11,35.81
BITCOIN +4.74%
- Support 1: 36,045.4
- Support 2: 35,636.8
- Support 3: 35,432.5
- Resistance 1: 36,658.3
- Resistance 2: 36,862.6
- Resistance 3: 37,271.2
- Pivot Point: 36,249.7
Cryptos are recovering today.
Ethereum is currently rising 5.15%, after a 32% drop between Sunday and Monday. With yesterday’s fall, the crypto market capitalisation fell bellow USD$1 Trillion. Part of the reason for the fall was the announcement of Solana’s development, which is gaining demand from developers.
Bitcoin also showed a significant drop after hitting a record high of USD$41,000. It is currently trading at USD$36,096, recovering from yesterday’s USD$31,000 support.
Bulls are hoping for a price recovery today, but traders know that if the stock market does well, taking refuge in cryptos can be replaced by metals. In times of uncertainty, crypto is still on traders’ radar.
CRUDE OIL +0.71%
Crude oil market continues with an upward perspective, as the supply of crude continues to decrease. Analysts expect the industry to return to the levels seen before the crisis, with a V-shaped recovery by 2021. Crude oil is trading in the market at USD$52.57 per barrel.
Saudi Arabia has announced that they will cut production again, which may bring a supply and demand equilibrium, with a possible oil deficit by 2021. This would help see price levels above USD$60 per barrel. Goldman Sachs analysts are forecasting a Brent price of $65 per barrel for the summer.
- Support 1: 52.59
- Support 2: 52.52
- Support 3: 52.43
- Resistance 1: 52.75
- Resistance 2: 52.84
- Resistance 3: 52.91
- Pivot Point: 52.68
Bulls hold the target at $53 per barrel and are above the 52.91 resistance. The Ichimoku cloud projects the price towards 52.15 and 52.45. Expected trading range between 52.43 and 52.91. Traders are watching the energy market forecast by the EIA (Energy Information Administration).
Sources
- Reuters
- Market watch
- Bloomberg
- Capitalix Market Research
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