Daily Review for March 2, 2021
Johnson & Johnson’s vaccine creates optimism and the market rebounded from last week’s sharp drop.
Crude oil price corrects and breaks the USD$60 per barrel support. Traders are waiting for the outcome of the OPEC+ meeting and the US inventories report.
In Europe, we will have today the Euro Zone inflation report. The EURUSD could show a further depreciation.
Gold is looking to defend the 1,700 support. If the equity market witnesses a major rally today, we could see a victory for the Bears of the metal.
Dow Jones recovered 600 points and is looking to consolidate the current zone of 31,363.
| CRUDE OIL -1.06% |
| Oil prices declined during the Asian session. Traders are waiting for the OPEC+ meeting and the US inventories report. At the moment the price is down 1.06% and is trading at USD$59.83 per barrel. The OPEC+ meeting is crucial for the crude oil market, as it will determine whether to extend production cuts. At the beginning of 2021, Saudi Arabia and Russia had stated that they would increase production in April. However, analysts do not see the increase in supply as favorable, since crude oil would have to be traded in the physical market with discounts of 10% relative to the market price. This would put pressure on prices. In the US, analysts estimate that inventories have decreased by 1.8 million barrels. |
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| Support 1: 59.70 Support 2: 59.51 Support 3: 59.25 Resistance 1: 60.15 Resistance 2: 60.41 Resistance 3: 60.60 Pivot Point: 59.96 |
| The price broke the 60 support and is below the trend line. It is also below the 25 and 15 day moving average. Trading range between 59.25 and 60.60. Pivot point at 59.96. |
| EURUSD -0.35% |
| Today we will have data of Germany’s unemployment rate and the Eurozone CPI. Economists estimate that inflation in February was 0.9%. At the moment the EURUSD is down 0.35% and is trading at 1.2002. As for Germany’s unemployment rate, analysts estimate a slight recovery from 6% to 5.9%. Due to the current money supply, economists foresee a further depreciation of the Euro, before the ECB raises interest rates. |
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| Support 1: 1.1999 Support 2: 1.1991 Support 3: 1.1979 Resistance 1: 1.2019 Resistance 2: 1.2031 Resistance 3: 1.2039 Pivot Point: 1.2011 |
| Price is below the 1.2023 support and has moved below the 25 and 15 day moving averages. The RSI is at the oversold level, so we could see a recovery towards resistance 1. The Bears keep the target at 1.2000. |
| GOLD -0.31% |
| Yesterday, the global market saw a significant rebound from last week’s decline. During the buying strength, commodities also rallied. However, in the consolidation phase of the market, investors began to sell gold from their portfolios, as they did not need it due to the rise in the indexes. Gold is currently down 0.31% and is trading at USD$1,720 per Troy ounce. |
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| Support 1: 1,713.44 Support 2: 1,710.82 Support 3: 1,706.84 Resistance 1: 1,720.04 Resistance 2: 1,724.02 Resistance 3: 1,726.64 Pivot Point: 1,717.42 |
| The price has confirmed the downward channel. It tried to recover positions up to 1,752, but the shorts gained momentum and now the longs are trying to defend the 1,700 support level. If it breaks it, the next level to check is 1,683. Pivot point at 1,717. |
| DOW JONES -0.22% |
| Yesterday, the global market witnessed an interesting rebound, driven by Johnson & Johnson’s vaccine. Dow Jones rose 1.95%, gaining 603 points to close at 31,535. In the futures market, the index is currently down 0.22% and is trading at 31,436 points. If the Bulls maintain the strong level, the index could set a new all-time high above 32,000 points. In the US, there is no economic data today, so events such as the economic stimulus package in the US could generate volatility. |
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| Support 1: 31,343 Support 2: 31,313 Support 3: 31,262 Resistance 1: 31,424 Resistance 2: 31,475 Resistance 3: 31,505 Pivot Point: 31,394 |
| Expected trading range between 31,262 and 31,505. RSI is in the neutral zone. The Ichomolu cloud projects a price correction towards 31,248 and then a horizontal move as the market consolidates the position. Pivot point at 31,394. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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