Daily Review for March 10, 2021
Global markets open mixed, but is turning positive ahead of important economic decisions.
Today the U.S. House of Representatives will make the final decision on the USD$1.9 trillion stimulus package.
The US inflation report will be released today. The FED is ready to take action.
Crude oil, due to its significant trading volume, leads the global commodity market. At the moment, the price is dropping a few points as a result of USD appreciation.
Silver is also starting to feel the pressure from inflation and USD.
Today, the market could see a major trend line. Traders are starting to allocate their portfolios.
| DOW JONES –0,09% |
| Today, the global market could have interesting movements due to the US inflation data and the decision of the US House of Representatives on Biden’s USD$1.9 Trillion economic stimulus package. At the moment the Dow Jones is down 0.09% and is trading at 31,824. The Fear and Greed index is at 50 out of 100. If inflation is higher than 2%, the FED may rise interest rates. |
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| Support 1: 31,754.4 Support 2: 31,713.7 Support 3: 31,688.4 Resistance 1: 31,820.4 Resistance 2: 31,845.7 Resistance 3: 31,886.4 Pivot Point: 31,779.7 |
| The price is slightly below the ascending channel. The index is above the 25-day moving average. Bulls are targeting 32,000. While the Bears see possibilities towards 31,500. Pivot point at 31,779. |
| CRUDE OIL -0.50% |
| During the beginning of the year, commodity prices started an upward trend, driven by the economic recovery of the countries, as the pandemic restrictions have been loosening. The weekend attacks on Saudi Arabian terminals have contributed to the price rise to USD$64 per barrel. The market is assessing a possible disruption in the supply of crude oil from the Gulf of Oman, so analysts expect prices to rise further. The IEA inventories report will be released today. |
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| Support 1: 63.05 Support 2: 62.2 Support 3: 59.92 Resistance 1: 65.33 Resistance 2: 66.76 Resistance 3: 69.04 Pivot Point: 64.48 |
| The price reached USD$64 per barrel, and from there it dropped to the current level of 63.71. The Ichimoku cloud projects the trading range between 62.25 and 65.55. RSI at neutral level, moving out of oversold zone. Pivot point at 64.48. |
| SILVER -1.43% |
| Traders started today’s trading day by selling silver contracts in the futures market to try to prevent the inflation effect in the US. On the other hand, Treasury bonds are currently rising 0.44% and 0,22% for 10 and 30 years respectively. If the FED raises interest rates, the USD could appreciate, which has a negative impact on silver. |
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| Support 1: 25,43 Support 2: 24,92 Support 3: 24,06 Resistance 1: 26,29 Resistance 2: 26,65 Resistance 3: 27,51 Pivot Point: 25,79 |
| Silver price is below resistance 1. If it manages to break this resistance, the next possible level is 26.57. However, the price is forming a shoulder head shoulder pattern, which means downtrend. Expected trading range for today is between 24.06 and 27.51. Pivot point at 25.79. |
| S&P500 +0.02% |
| The global market open mixed, but gradually is turning positive. Traders are paying attention to the US inflation report. The S&P500 is up 0.02% and is trading at 3,874. Trading volume has decreased in the morning in Europe, so the price remains above the ascending channel. The USD$1.9 trillion package could be approved today in the US House of Representatives. This could lead to rises in the equity market and falls in the fixed income market. If interest rates rise, bonds tend to fall. |
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| Support 1: 3,860.70 Support 2: 3,854.79 Support 3: 3,851.20 Resistance 1: 3,870.20 Resistance 2: 3,873.79 Resistance 3: 3,879.70 Pivot Point: 3,864.29 |
| Expected trading range between 3,851 and 3,879. Pivot point for change in trend at 3,864. Price is above resistance 1. If it manages to consolidate this point, the next level is 3,906. Bulls keep the target at 4,000. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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