Daily Review for January 28, 2021
Markets remain in red and the VIX index is starting to gain strength. It is currently at 1.26%
FED impacted the market with the announcement of the deterioration of the US economy
FTSE 100 awaits US corporate results
The Dow Jones fell 600 points and traders are looking for a possible rebound today
For the moment, Gold and Bitcoin have not entered as safe haven assets at investors’ portfolios
| FTSE 100 -0.92% |
| Global market witnessed a sharp fall in all stock exchanges due to the lack of clarity on the covid-19 vaccines. The index is currently down 0.92% and is trading at 6,466.75. The market also fell due to the Fed’s warning that the US economy will enter a period of deterioration in the coming months. This affects the FTSE, as most of its companies do business in the US. |
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| Support 1: 6,447.1 Support 2: 6,438.6 Support 3: 6,428.4 Resistance 1: 6,465.8 Resistance 2: 6,476.0 Resistance 3: 6,484.5 Pivot Point: 6,457.3 |
| Bearish trend. The index is trading at the 6,466 support. Price is below the 25 and 15-day moving averages. RSI is in the oversold zone. The next target for the Bears is 6,437. Pivot point at 6,457. |
| DOW JONES -0.10% |
| Yesterday, the Dow Jones fell 600 points following the Fed’s announcement. The index is currently trading at 30,185. Fear and Greed ratio has moved into the fear zone of 40 over 100. The FED kept the interest rate unchanged. However, it warned about the US economy. The Dow Jones also fell on fears of a bubble. For example, during the last five trading sessions, Gamestop stock has risen 635%, valuing the company at USD$24 Billion. |
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| Support 1: 30,100 Support 2: 30,068 Support 3: 30,048 Resistance 1: 30,152 Resistance 2: 30,172 Resistance 3: 30,204 Pivot Point: 30,120 |
| The upward trend of the index has slowed down. Despite the fall, the index has managed to hold above the support of 30,000 points. Bears are targeting a break of that support. Expected trading range between 30,048 and 30,204. Pivot point at 30,120. |
| GBPUSD -0.18% |
| Following the Fed’s decision to leave interest rate unchanged, the currency fell 0.65% and is currently down 0.18% from yesterday’s close. The currency is currently trading at 1.3663. The FED also announced that they will maintain their QE program with an actual value of USD$120 Billion per month. Today the US GDP data for Q4 2020 is going to be announced. Market analysts estimate a 4% growth. |
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| Support 1: 1.3639 Support 2: 1.3621 Support 3: 1.3602 Resistance 1: 1.3676 Resistance 2: 1.3695 Resistance 3: 1.3713 Pivot Point: 1.3658 |
| The currency formed a double roof. The price is below the short and medium-term moving average. Bulls maintain the target at 1.3747. Pivot point at 1.3658. Expected trading range between 1.3602 and 1.3713. |
| XAUUSD -0.36% |
| At the moment the price of gold is down 0.36% and is trading at USD$1,839.77. Gold didn’t follow the stock market. The market showed yesterday that investors preferred to sell equities in their portfolios instead of hedging positions with gold. Today, if the market does not rebound, we could see long positions in the metal. |
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| Support 1: 1,832 Support 2: 1,830,50 Support 3: 1,829,10 Resistance 1: 1,834,90 Resistance 2: 1,836,30 Resistance 3: 1,837,80 Pivot Point: 1,833,40 |
| Gold broke the 1,850 support. The bear’s new target is 1,800. In the meantime Bulls start to take long positions, anticipating more volatility in the market. Pivot point for change in trend at 1,833. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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