Daily Review for March 22, 2021
Crude oil continues to correct. Global commodities start the week in red. Traders know that the delay of vaccines affects the physical trade of raw materials.
Fears in Europe over the possible third wave of covid 19. Traders sell silver and buy bonds to mitigate uncertainty.
European stock markets open in red due to new lockdowns in France and Germany.
Global money markets are attentive to the Bank for International Settlements summit, where central banks will discuss the crypto market.
| CRUDE OIL -1.25% |
| Crude oil price forecast by Deutsche Bank has changed, and is now at USD$57 per barrel. Crude oil rally stopped ending Q1 2021. AstraZeneca’s issues and the delayed in the vaccines have caused the commodity price to correct to the actual level of USD$60.71. On the other hand, Oil demand has partially recovered; however, the market expects to reach pre-pandemic levels before OPEC+ releases more supply to the market. |
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| Support 1: 60,27 Support 2: 59,92 Support 3: 59,48 Resistance 1: 61,06 Resistance 2: 61,50 Resistance 3: 61,85 Pivot Point: 60,71 |
| The price is currently down 1.25%. However, it is entering a sideways period. The Ichimoku cloud projects a trading range between 62.04 and 60.87. Pivot point at 60.71. |
| SILVER -2.67% |
| Commodities start the week in red. Main fall is presented by silver with -2.57%, followed by platinum -1.90% and Cocoa with – 1.63%. Sales volume in the market is mainly due to the delay in the placement of vaccines and the possible third wave of the virus in Europe. This is hurting the physical trade of raw materials and therefore the market is punishing its prices. |
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| Support 1: 25.52 Support 2: 25.45 Support 3: 25.38 Resistance 1: 25.67 Resistance 2: 25.74 Resistance 3: 25.81 Pivot Point: 25.60 |
| Silver price has fallen close to the 200-day moving average. Bears are projecting the price towards the 61.8% Fibonacci level at 24.92. Major resistance at 26. Trading range for today between 25.38 and 25.81. Pivot point at 25.60. |
| DAX 30 -0.20% |
| The market opens lower in Europe, as a result of new lockdownsin Germany and France. German Chancellor Angela Merkel has proposed to extend the restrictions until April 18, 2021. The French government, for its part, has declared lockdowns in Paris and other cities and regions, to try to contain the growing number of contagions. Meanwhile, the German index is down 0.20% and is trading at 14,628 points. Traders in Europe are also looking ahead to today’s presentation by FED Chairman Powell. |
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| Support 1: 14,579.4 Support 2: 14,570.7 Support 3: 14,555.4 Resistance 1: 14,603.4 Resistance 2: 14,618.7 Resistance 3: 14,627.4 Pivot Point: 14,594.7 |
| Expected trading range between 14,555 and 14,627. Pivot point at 14,594. Price is below the Ichimoku cloud. Price could resume the bullish channel towards 14.737. RSI at neutral. |
| S&P500 -0.02% |
| According to Commerzbank’s projections, the Wall Street index could reach 4,200 points during 2021. Since the index’s deepest decline in February 2020, the S&P500 has made a V-shaped recovery. The index is currently down 0.02% and is trading at 3,896 points. During this week, the market is looking forward to Powell’s and Janeth Yellen’s announcements on the economic outlook to the US House of Representatives. Also, the money market will be paying close attention to the Bank for International Settlements Summit, where delegates from the world’s major central banks will meet to discuss cryptocurrencies and regulation. |
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| Support 1: 3,886.62 Support 2: 3,881.37 Support 3: 3,875.12 Resistance 1: 3,898.12 Resistance 2: 3,904.37 Resistance 3: 3,909.62 Pivot Point: 3,892.87 |
| Expected trading range between 3,875 and 3,909. Pivot point at 3,892.87. Price is below the Ichimoku cloud. Possible sideway move of the index as volatility is generated by central banks and cryptos. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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