Daily Review for March 4, 2021
ADP report surprised the market with lower non-farm payrolls.
Dow Jones is in a sideway trend and traders are looking forward to Jerome Powell’s announcement.
Germany eases restrictions. DAX starts to rise gradually. Traders are more attentive to Powell.
Crucial day for crude oil. Possible OPEC+ production announcement today.
Gold loses interest in investors’ portfolios. Substitute assets remain the treasury bonds.
| DOW JONES -0.08% |
| Dow Jones continues to decline in the wake of investor interest in fixed income. It is currently down 0.08% and is trading at 31,196. The Fear and Greed index is at 52 (neutral level) out of 100. At the start of yesterday’s trading session, the markets were in positive territory driven by the optimism generated by the Johnson & Johnson vaccine. However, the ADP jobs report informed a non-farm payroll employment gain of 117,000 versus the market estimate of 177,000. This caused the market to turn around and start falling. Economists are predicting that the economy is overheating and that the FED will soon have to raise interest rates. Today we will have an announcement from Fed Chairman Jerome Powell. |
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| Support 1: 31,131.4 Support 2: 31,086.7 Support 3: 31,053.9 Resistance 1: 31,208.9 Resistance 2: 31,241.7 Resistance 3: 31,286.4 Pivot Point: 31,164.2 |
| Despite the drop, the index is relatively close to the all-time high level of 32,000. The price is below the 25 and 15-day moving averages. If the market continues to fall, the price could head towards the area of support 3. Pivot point at 31,164. |
| DAX 30 +0.05% |
| Following German Chancellor Angela Merkel’s meeting with domestic leaders, they decided to gradually ease the restrictions imposed by the pandemic. The index is currently up 0.05% and is trading at 14,000. For the moment, the German government’s announcement has not had a major impact on the index, as most of the companies that compose it generate revenues from global, not local, businesses. On the other hand, the German Stock Exchange has announced the incorporation of Siemens Energy to the DAX. |
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| Support 1: 13.964,4 Support 2: 13.939,7 Support 3: 13.918,9 Resistance 1: 14.009,9 Resistance 2: 14.030,7 Resistance 3: 14.055,4 Pivot Point: 13.985,2 |
| The price continues above the 14,000 resistance. It is forming an ascending channel as it crosses the 25 and 15 day moving averages. The first resistance to overcome is above the level of 14,030. The next one is 14,055. If it succeeds, the next path is towards the all-time high of 14,200. |
| CRUDE OIL +0.67% |
| Today, the OPEC+ meetings continue. Finally there will be a decision whether or not to increase the production level of the members. At the moment the price is up 0.67% and is trading at USD$61.66. In yesterday’s IEA report, inventories rose significantly in the US, increasing by 21.65 million barrels. The price discounted the increase in supply, falling to USD$59 per barrel. After the drop, the price continued its upward trajectory. Traders are watching the OPEC+ conclusions. |
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| Support 1: 61.51 Support 2: 61.25 Support 3: 61.02 Resistance 1: 62.00 Resistance 2: 62.23 Resistance 3: 62.49 Pivot Point: 61.74 |
| Expected trading range between 61.02 and 62.49. Pivot point at 61.74. Price is above the Ichimoku cloud and approaching resistance 1. If the Bulls’ strength continues, the next level to reach is resistance 2. |
| GOLD -0.01% |
| The metal continues to lose popularity among fund managers, as they have opted to replace gold with less volatile assets such as treasury bills and bonds. Investors are now more interested in fixed income to mitigate inflation. Likewise, they have started to include cryptocurrencies in their portfolios. |
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| Support 1: 1.713,96 Support 2: 1.711,73 Support 3: 1.709,06 Resistance 1: 1.718,86 Resistance 2: 1.721,53 Resistance 3: 1.723,76 Pivot Point: 1.716,63 |
| The price is at the downward channel. The support of major interest from the Bears is 1,560. Possible rebound in the coming weeks, if the commodity super cycle is confirmed. Expected trading range for today between 1,718 and 1,723. Pivot point at 1,716. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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