Daily Review for March 5, 2021
NFP Day. Market expects at least 182,000 non-farm jobs generated in the US. Analysts also estimate the unemployment rate at 6.3%.
Gold continues to decline. Investors prefer fixed income to metals for the time being.
Nasdaq 100 and US futures are in red. Global selloff continues. Traders are aware of the NFP.
DAX 30 falls below 14,000 points. In Europe, traders are analyzing the ECB interest rate decision next week.
OPEC+ keeps production levels stable. Prices of crude oil and Brent are up 1.50% and 1.69%, respectively.
| GOLD -0.34% |
| Significant drop in gold, evidence that investors’ have hedged in fixed income. The metal is currently down 0.34% and is trading at USD$1,695 per Troy ounce. Historically, gold has been used to hedge against inflation. However, the correlation now has been broken. The fall in the price of the metal can be explained by the feeling of market participants that the Fed is going to raise interest rates sooner than later. Today, the US Non-Farm Payrolls report will be released. The market is expecting a figure of 182,000. Last month, the result was 49,000. We will also get the US Unemployment Rate. The market forecast is 6.3%. |
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| Support 1: 1,684.32 Support 2: 1,671.11 Support 3: 1,638.43 Resistance 1: 1,717 Resistance 2: 1,736.47 Resistance 3: 1,769.15 Pivot Point: 1,703.79 |
| Price is still in the downward channel. The next support to watch is 1,600. We could see some interesting moves during the NFP announcement. Gold could play an important role today in investors’ portfolios. Pivot point at 1,703.79. |
| NASDAQ 100 -0.53% |
| Global market correction continues and at today’s opening, index futures from Asia, Europe and the US are in negative territory. Nasdaq 100 is currently down 0.53% and is trading at 12,374. US Treasury bonds are currently down 0.42% and 0.56% for 10 and 30 years respectively. The Fear and Greed index is at 48 out of 100, indicating fear in the market. If the NFP data and the unemployment rate do not convince the market today, we could see a further correction. |
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| Support 1: 12,366.30 Support 2: 12,319.71 Support 3: 12,276.67 Resistance 1: 12,455.93 Resistance 2: 12,498.97 Resistance 3: 12,545.56 Pivot Point: 12,409.34 |
| Price is forming a descending channel. It is also below the 25 and 50 day moving averages. The RSI is Neutral but is approaching oversold. Bears are targeting 11,000. Pivot point at 12,409. |
| DAX 30 -0.62% |
| In Europe, the market opens lower as a result of the global sell-off. DAX 30 is down 0.62% and is trading at 13,890. Traders in Europe are looking ahead to today’s NFP, but are also focused on the ECB’s interest rate decision that will be held next week. Analysts expect the ECB to raise the benchmark interest rate. |
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| Support 1: 13,968.5 Support 2: 13,948.0 Support 3: 13,927.0 Resistance 1: 14,010.0 Resistance 2: 14,031.0 Resistance 3: 14,051.5 Pivot Point: 13,989.5 |
| The index is above support 1. If it breaks it, the next level to watch is the 13,787 support. The 14,000 points were broken with yesterday’s market decline. Expected trading range between 13,927 and 14,051. RSI Neutral approaching oversold. Pivot point at 13,989. |
| CRUDE OIL +1.16% |
| Oil price continues its upward trend. It is currently up 1.16% and is trading at USD$64.69 per barrel. Rally was generated by OPEC+’s decision to extend cuts and keep production at the current level until April. Saudi Arabia is going to maintain daily cuts of 1 million barrels until April. Thus, the OPEC+ strategy is focus towards the demand for crude oil in a post-covid economy. |
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| Support 1: 61,33 Support 2: 58,75 Support 3: 54,46 Resistance 1: 65,62 Resistance 2: 67,32 Resistance 3: 71,61 Pivot Point: 63,04 |
| The price is over breaking the resistance 1 and is marking the ascent towards the resistance 2 and 3. We could see a pullback to support 1, before regaining strength and rising again. Pivot point at 63.04. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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