Daily Review for March 3, 2021
A possible gradual opening in Germany boosts DAX 30.
Global index futures in green.
OPEC+ meeting continues. Focus is on the possible addition of 1.5 million barrels per day to the market. Prices are starting to show evidence on the move.
Technology companies closed yesterday in red. Nasdaq 100 looks to recover yesterday’s decline.
A post-pandemic economy could generate a new commodity super cycle.
| DAX 30 +0.48% |
| Today, German Chancellor Angela Merkel will meet with Germany’s regional leaders to evaluate a gradual easing of the pandemic restrictions. According to previous statements, if contagions increase, restrictions could be lengthened. The possible opening of business as a result of today’s decision has been viewed positively by investors. DAX 30 is currently up 0.48% and is trading at 14,104. Today, ECB Vice President Luis de Guindos will present the bank’s analysis of interest rates and inflation. |
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| Support 1: 14,095.1 Support 2: 14,079.8 Support 3: 14,069.1 Resistance 1: 14,121.1 Resistance 2: 14,131.8 Resistance 3: 14,147.1 Pivot Point: 14,105.8 |
| Price managed to break the resistance at 14,000. At the moment the price is above resistance 1 at 14,121 and is above the moving average. Bulls keep targeting resistance 2 at 14.131. Pivot point at 14.105. |
| CRUDE OIL +0.27% |
| Inconclusive message from the OPEC+ meeting. According to the members of the organization, the market could begin to consume the 1.5 million barrels per day of cuts that OPEC+ has maintained since last year. However, the possible increase in supply caused the price of oil to fall to USD$59 per barrel. At the end of this week, members of the cartel will make a decision on whether to generate more supply or maintain the actual level. On the other hand, the American Petroleum Institute reported yesterday that crude oil inventories in the US increased by 7 million barrels. |
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| Support 1: 58.76 Support 2: 58.13 Support 3: 56.33 Resistance 1: 60.56 Resistance 2: 61.74 Resistance 3: 63.54 Pivot Point: 59.94 |
| Expected trading range between 56.33 and 63.54. Pivot point at 59.94. Price is at the same level of the moving average. It is also below the Ichimoku cloud, where the trading upper limit is indicated at 61.25. RSI at neutral level. Possible sideways trend, while OPEC+ decisions are presented to the market. |
| NASDAQ 100 +0.99% |
| In the spot market, the Nasdaq 100 fell 1.69% yesterday, giving up 230 points. In the futures market, the index is currently up 0.99% and is trading at 13,183. Yesterday’s heavy selling volume in Apple, Twitter and Microsoft stocks pushed the index lower. Meanwhile, investors marked long positions after the fall of the index. |
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| Support 1: 13,143.99 Support 2: 13,117.87 Support 3: 13,100.24 Resistance 1: 13,187.74 Resistance 2: 13,205.37 Resistance 3: 13,231.49 Pivot Point: 13,161.62 |
| Price is at the Ichimoku cloud, which forecasts a sideways movement as long as the trend is set. If buying volume increases, price may head towards resistance 2. If on the other hand, the market corrects, price may drop towards support 2. Pivot point at 13,161. |
| Silver -0.45% |
| At the moment, the metal is down 0.45% and is trading at USD$26.78. Price is in downtrend mainly due to the rise of the futures market. The fall of the metal can also be explained by the appreciation of the USD, which makes raw materials more expensive, therefore investors lose interest in them. On the other hand, analysts see a major commodity rally in the coming months. Goldman Sachs, one of the most active investment banks in the global commodities market, commented that we could be at the door of a new super cycle. In view of the above, analysts evaluate the demand from Japan, USA and China, as the main importers of raw materials globally. |
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| Support 1: 26.10 Support 2: 25.44 Support 3: 24.37 Resistance 1: 27.17 Resistance 2: 27.57 Resistance 3: 28.64 Pivot Point: 26.51 |
| Price is coming out of the Ichomoku cloud. It is also at the level of the moving average. RSI at neutral level. Low trading volume at the moment. Pivot point at 26.51. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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