Daily Review for January 7, 2021
Industrial data from Germany and the European Union’s approval of the use of Moderna’s vaccine generate optimism in the European market
Nasdaq 100, discounted several points by assuming that a Democratic victory of the Senate, could generate more regulation and taxes to their companies
Wall Street maintains the rise in the index futures. The market projects greater economic stimulus
Gold manages to overtake the 1,900 support and begins to recover part of its decline
DAX +0.81%
The German Stock Exchange reference index continues its upward rally and begins to move towards the 14,000 point resistance. Despite the volatility generated by the elections in Georgia, the increase in the number of infections and possible new lockdowns in Europe, the German index continues to rise and today could break the resistance of 14,000 points.
An important factor that supports the index trend is the European Union’s approval of Moderna vaccine, and the important industrial data in Germany.
- Support 1: 13,947.9
- Support 2: 13,924.7
- Support 3: 13,904.4
- Resistance 1: 13,991.4
- Resistance 2: 14,011.7
- Resistance 3: 14,034.9
- Pivot Point: 13,968.2
The upper Bollinger band has a trend of 13,953 points. Main support is at 13,500 points. Bulls are targeting 15,000 points. Expected trading range for today’s is between 13,904 and 14,034 points, with pivot point for a change in trend at 13,968.
NASDAQ 100 +0.68%
Following the Democrats’ victory in the US Senate, Wall Street embarked on a bullish rally, evidenced mainly by the Dow Jones and S&P500 stock indices. The stock market rose because democratic control means greater economic stimulus.
Therefore the rally continues in the futures market. Nasdaq 100 started yesterday’s rally a little behind than the other two mentioned indexes.
- Support 1: 12,700.38
- Support 2: 12,680.63
- Support 3: 12,650.01
- Resistance 1: 12,750.75
- Resistance 2: 12,781.37
- Resistance 3: 12,801.12
- Pivot Point: 12.731
Upper Bollinger Band indicates a level of 12,746 points. The Ichimoku cloud projects the index to 12,697 points. The index is recovering some of its losses from yesterday. A Democratic victory in the Senate means more regulation and taxes towards technology companies that are part of the index. Pivot point at 12,731.
DOW JONES INDUSTRIAL AVERAGE +0.37%
The benchmark index of industrial companies listed on the US stock exchange reached 31,000 points, setting a new historical record. The market saw a positive Democratic victory in the US Senate, and after that, the index closed yesterday with a rise of 1.19%.
The market continues to be strong, but volatility is expected with regard to the outcome of the Georgian elections. In the USA they are commenting a new possible impeachment process of president Trump.
- Support 1: 30,903.6
- Support 2: 30,887.3
- Support 3: 30,869.6
- Resistance 1: 30,937.6
- Resistance 2: 30,955.3
- Resistance 3: 30,971.6
- Pivot Point: 30,921.3
Bulls set their target at 31,000 points. The index is currently trading at 30,864. It maintains an upward position, with the upper Bollinger band pointing to 30,953. Expected trading range between 30,869 and 30,971. Pivot point for trend reversal at 30,921.
Gold +0.62%
Yesterday, gold presented a significant fall as a result of the elections in Georgia, which mean the control of the Senate in the United States. The price of the metal fell because a Democratic victory means greater economic stimulus, which is good in the short term for the stock market, and consequently less need to use gold to hedge portfolios.
Gold is a metal that has no industrial use, therefore its price reflects market sentiment on monetary and fiscal policy issues.
- Support 1: 1,919.16
- Support 2: 1,916.43
- Support 3: 1,912.26
- Resistance 1: 1,926.06
- Resistance 2: 1,930.23
- Resistance 3: 1,932.96
- Pivot Point: 1,923.33
Gold almost broke the 1,900 support and remained there, just as the protests of Trump supporters broke out in the Capitol. From there, the metal has recovered part of its fall, currently standing at 1,919. Expected trading range between 1,912 and 1,932 with pivot point at 1,923. Main support at 1.900.
Sources
- Reuters
- Market watch
- Bloomberg
- Capitalix Market Research
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