Daily Review for March 16, 2021
Dow Jones and S&P500 hit record highs on the boost of equities caused by the US stimulus package.
Investors began tacking gains on the weekend rally in Bitcoin. India contemplates putting restrictions on the use of cryptocurrencies.
Metals start to become part of investors’ portfolio allocation. Goal is to mitigate inflation.
Crude oil gives up 1% as a result of restrictions by some countries on the use of AstraZeneca’s vaccine.
| DOW JONES -0.13% |
| Yesterday the Dow Jones reached record high, rallying to 32,953. The index is currently down 0.13% and is trading at 32,799. The S&P500 also reached an all-time high of 3,968. The market’s momentum was driven by optimism about the economic stimulus package, vaccines and the early opening of economic and air borders. Meanwhile, the market is aware of the FED announcement this week’s on interest rate and inflation. |
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| Support 1: 32,796 Support 2: 32,775 Support 3: 32,764,5 Resistance 1: 32,827.5 Resistance 2: 32,838 Resistance 3: 32,859 Pivot Point: 32,806.5 |
| Rising channel. The price is above the 20-day and 50-day moving average. Bulls next level is 33.100. Trading range between 32.764 and 32.859. Pivot point at 32.806. |
| BTCUSD -4.02% |
| Bitcoin got record highs over the weekend, with the price reaching USD$62,000. Yesterday, investors started to take profits, and after that, the price corrected to the actual level of USD$55,606. In addition to the sell volume, the price also reacted to the news that India is thinking of restricting the use of the cryptocurrency. |
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| Support 1: 55,067 Support 2: 54,981 Support 3: 54,938 Resistance 1: 55,196 Resistance 2: 55,239 Resistance 3: 55,325 Pivot Point: 55,110 |
| The price formed a double top, before falling to the actual level. On Sunday and Monday, the price broke the ascending channel. The price is below the 25 and 15 day moving averages. It is also forming a shoulder head shoulder pattern, which indicates a possible decline. Pivot point at 55,110. |
| GOLD +0.06% |
| The price of gold and metals, such as silver, copper, platinum and palladium, showed an interesting rebound yesterday, as a result of the fall in the price of Bitcoin. Gold is currently down 0.06% and is trading at USD$1,732 per Troy ounce. Investors are taking advantage of the equities market rally caused by the US economic stimulus package. However, they are also keeping an eye on inflation and are allocating part of their portfolio in gold and other metals. |
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| Support 1: 1,725.20 Support 2: 1,722.30 Support 3: 1,720.10 Resistance 1: 1,730.30 Resistance 2: 1,732.50 Resistance 3: 1,735.40 Pivot Point: 1,727.40 |
| The price is forming an inverted shoulder head shoulder pattern, which is a bullish signal. The price is above resistance 1. If it breaks it the next level to reach is 1,732. Bulls keep the target at 1,750. Pivot point at 1,727. |
| CRUDE OIL -0.92% |
| The price of WTI and Brent are currently falling by 0.92% and 0.89% respectively as a result of the restriction of the use of AstraZeneca’s vaccine by several countries worldwide. The rise in oil prices evidenced since early 2021 was based on OPEC+ cuts. AstraZeneca vaccine restriction is a blow to the demand for crude oil, as it means one vaccine less to fight covid-19, which delays the economy from quickly returning to growth cycle and demand consumption. |
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| Support 1: 64.72 Support 2: 64.41 Support 3: 64.24 Resistance 1: 65.20 Resistance 2: 65.37 Resistance 3: 65.68 Pivot Point: 64.89 |
| The price is above support 1. If it breaks it, the next level to watch is 64.41. Bulls remain optimistic and forecats the price at USD$70 to $80 by the end of 2021. Pivot point at 64.89. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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