Daily Review for March 8, 2021
Stock indexes mixed. Significant falls in Nasdaq 100, Hang Seng and China A50. Europe opens in green, undamaged by the lower industrial production in Germany.
The US Senate approved the economic stimulus package.
Crude oil prices set a trend and the Bulls set their target at USD$80 per barrel.
With the level of inflation and market indecision, gold could have a bullish opportunity.
S&P500 in red, shows market’s concern about inflation.
DAX 30 in green, boosted by the possible approval of Johnson & Johnson’s vaccine in the European Union.
| CRUDE OIL +1.27% |
| The week starts with a green light on the US economic stimulus plan. The Senate approved the plan for USD$1.9 Trillion. On Tuesday it will have the final vote in the House of Representatives. The news is favoring the price of crude oil, because this package would help to increase the demand for crude. At the moment the price is up 1.27% and is trading at USD$ 66.85 per barrel. On the other hand, the supply of crude oil could present a possible contraction, due to the attack of the Houthi rebels to one of the main crude oil terminals in Saudi Arabia. |
 |
| Support 1: 66.97 Support 2: 66.78 Support 3: 66.47 Resistance 1: 67.47 Resistance 2: 67.78 Resistance 3: 67.97 Pivot Point: 67.28 |
| The price is above the 15 and 25 day moving averages. The RSI is coming out from the overbought level. Bulls mark the target at USD$80. Pivot point at 67.28. |
| GOLD -0.18% |
| U.S. bonds are starting the week by increasing their yields. The 10-year bond is rising 2.47% at the moment. Meanwhile, gold is down 0.18% and is currently trading at USD$1,699.56. Last Friday, the gold price broke the 1,700 support on the release of the NFP report which surprised the market. Over the weekend, the US Senate passed the Biden economic stimulus package. In the short term, equities could show gains. However, the money supply would force the FED and the ECB to raise interest rates due to the inflation. Herein lies the opportunity for gold to climb above 1,700 again. |
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| Support 1: 1,693.36 Support 2: 1,690.43 Support 3: 1,686.56 Resistance 1: 1,700.16 Resistance 2: 1,704.03 Resistance 3: 1,706.96 Pivot Point: 1,697.23 |
| Bears are targeting 1,684. An upward move could create a recovery to the 50-day moving average in 1.736. RSI is at neutral level. Pivot point at 1.697. |
| S&P500 -0.75% |
| On Friday, the market showed an interesting upward momentum following the good NFP data in the US. At today’s market opening, futures in Asia turned red and continue to do so. In Europe, the market is currently positive, with interesting rises in the Italian MIB +0.80%, the IBEX 35 +0.85% and the Euro Stoxx 50 +0.49%. In the USA, futures are still in the red and the S&P500, as the highest representative of the US economy, is down 0.79%. The stimulus package could generate two scenarios. First, the market could rally at the opening of Wall Street. The second is that investors understand the inflation effect and decide to hedge in bonds, metals and cryptos. |
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| Support 1: 3.810,54 Support 2: 3.803,96 Support 3: 3.793,54 Resistance 1: 3.827,54 Resistance 2: 3.837,96 Resistance 3: 3.844,54 Pivot Point: 3.820,96 |
| The index is falling and approaching support 1. The Ichimoku cloud estimates a trading range between 3,816 and 3,792. |
| DAX30 +0.79% |
| Industrial production data in Germany, which fell 2.5% in January compared to December, is not affecting the opening of the markets in Europe. This week, we will have the European Union decision on the Johnson & Johnson vaccine. The ECB will also announce its decision on interest rates. In the meantime, governments are assessing the pandemic and the possible de-escalation of restrictions. The goal is to have at least 70% of the population vaccinated by September 2021. |
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| Support 1: 13.988,0 Support 2: 13.962,0 Support 3: 13.946,5 Resistance 1: 14.029,5 Resistance 2: 14.045,0 Resistance 3: 14.071,0 Pivot Point: 14.003,5 |
| Price is above the Ichimoku cloud. Expected trading range between 13.946 and 14.071. Pivot point at 14,003. If the buying momentum continues, the price could consolidate at 14,000 points. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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