Daily Review for March 15, 2021
Market opens mixed, but is slowly turning green as a result of the optimism of the economic stimulus package in equities.
Bitcoin reached record highs over the weekend.
On Wednesday, we will have the FED interest rate decision.
On Thursday, the Bank of England will announce its interest rate decision.
On Friday, the Bank of Japan will announce its strategy in monetary policy.
Brent is climbing. Projections indicate a possible price of USD$80 per barrel by the end of 2021.
Gold pressured by Bitcoin. Bears look for the USD$1,700 per troy ounce level.
| DOW JONES +0.20% |
| Wall Street futures start the week mixed, but gradually turning positive. Investors remain optimistic about the US economic stimulus package. The Dow Jones is currently up 0.20% and is trading at 32,732. The Fear and Greed index is at 59 out of 100. Analysts expect value stocks to perform well in the short term. In fixed income, bonds are falling at the moment. |
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| Support 1: 32,671 Support 2: 32,619 Support 3: 32,591 Resistance 1: 32,751 Resistance 2: 32,779 Resistance 3: 32,831 Pivot Point: 32,699 |
| Bullish trend. The price is above the ascending line. It is also above the 25 and 15-day moving average. The RSI is near the overbought level. Bulls maintain the target at 33.000. Pivot point at 32,699. |
| GOLD +0.16% |
| Gold is currently up 0.16% and is trading at USD$1,724.75 per Troy ounce. Over the weekend, Bitcoin reached a new all-time high of USD$61,000, so the pressure on gold has started again. On the other hand, investors are looking forward to this week’s announcements from Central Banks. We will have monetary policy announcements from the FED, the Bank of England and the Bank of Japan. |
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| Support 1: 1,719.16 Support 2: 1,717.63 Support 3: 1,714.96 Resistance 1: 1,723.36 Resistance 2: 1,726.03 Resistance 3: 1,727.56 Pivot Point: 1,721.83 |
| The price is at the 50% and 38.2% of the Fibonacci retracement level. Neutral trend. Bulls target 1,800, while Bears target 1,700. It all depends on the market reaction to the central banks’ monetary policy announcements. |
| BRENT +0.94% |
| Economists are projecting the Brent price for Q3 at USD$80 per barrel. At the moment the price is up 0.94% and is trading at USD$69.87 per barrel. Analysts estimate that OPEC+ will extend its production cuts strategy for additional months, while they evaluate the reopening of the global economy. As demand begins to reach pre-pandemic levels, prices could begin to stabilize towards USD$70 per barrel. |
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| Support 1: 69.64 Support 2: 69.39 Support 3: 69.25 Resistance 1: 70.03 Resistance 2: 70.17 Resistance 3: 70.42 Pivot Point: 69.78 |
| Expected trading range for today between 69.25 and 70.42. Pivot point at 69.78. The price is forming a bullish channel, which could head towards resistance 3, and then consolidate. The RSI is at neutral level, leaving the overbought zone. |
| S&P500 +0.12% |
| According to Deutsche Bank, the index could reach 4,100 points by the end of 2021. At the moment the index is up 0.12% and is trading at 3,936. Analysts estimate a positive impact of the economic stimulus package on stocks valuation by 2021. The market is expected to rise during this year, until it evidences inflationary pressures. |
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| Support 1: 3,926.54 Support 2: 3,920.96 Support 3: 3,917.54 Resistance 1: 3,935.54 Resistance 2: 3,938.96 Resistance 3: 3,944.54 Pivot Point: 3,929.96 |
| The price is still above the ascending channel. If it breaks this level, it could have a clear path to resistance 2 and 3. Bulls continue to focus on the 4,000 level. Expected trading range between 3,917 and 3,944. Pivot point at 3,929. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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