Daily Review for May 05, 2021
Red Tuesday. Nasdaq 100 gave up 3%. S&P500 1.36%. Main cryptos also gave up points.
Dogecoin, in bullish rally, rising more than 50% in two days.
Equities sell-off take off in May. Traders are now aware of US non-farm payrolls data. The S&P500 is starting to recover some points.
Commodity traders are aware of US crude oil inventories. Analysts expect a drawdown of at least 2.3 million barrels, as a result of increased demand following the economic recovery and reduced supply due to the pandemic in India.
Global equity market are starting to look for a rebound zone.
| NASDAQ 100 +0.16% |
| Market fell sharply yesterday as a result of a massive sell-off in technology stocks, causing the Nasdaq 100 index to drop by 3%. The market is expected to rebound today. At the moment the index is up 0.16% and is trading at 13,543. |
 |
| Support 1: 13,532.96 Support 2: 13,506.79 Support 3: 13,485.96 Resistance 1: 13,579.96 Resistance 2: 13,600.79 Resistance 3: 13,626.96 Pivot Point: 13,553.79 |
| Four consecutive days of losses for the index. The price is between support 1 and resistance 1. Bulls are looking to recover the fall, tracing the new target at the 141% Fibonacci extension at 14,430. Pivot point at 13,553. |
| BITCOIN -2.95% |
| Due to Bitcoin’s exposure to Nasdaq 100 companies, the cryptocurrency also fell yesterday. At the moment it continues to fall 2.95% and is trading at 54,309. Tesla closed yesterday with a drop of 1.65%. Many investors have rotated from Bitcoin to other cryptos such as Ethereum or Dogecoin. |
 |
| Support 1: 54,035.2 Support 2: 53,660.9 Support 3: 53,321.4 Resistance 1: 54,748.9 Resistance 2: 55,088.3 Resistance 3: 55,462.6 Pivot Point: 54,374.6 |
| The price is in a downward channel. Bulls are looking to bounce the price. Ichomoku cloud forecasts the trading range between 54,309 and 56,033. Pivot point at 54,374. RSI neutral. |
| S&P 500 +0.22% |
| S&P500 closed yesterday down 1.36%. Today, traders are looking ahead to the ADR Non-Farm Employment Change data in the US, where analysts expect 800,000 new jobs. Investors are also watching the Non-Manufacturing PMI and Crude Oil Inventories in the US. At the moment, the index is up 0.22% and is trading at 4,165. |
 |
| Support 1: 4,162.20 Support 2: 4,159.53 Support 3: 4,155.94 Resistance 1: 4,168.46 Resistance 2: 4,172.05 Resistance 3: 4,174.72 Pivot Point: 4,165.79 |
| Expected trading range between 4,155 and 4,174. Pivot point at 4,165. Price is at resistance 1. If the Bulls recover the market, the next zone to watch is 4,203. |
| CRUDE OIL +0.55% |
| Traders are awaiting the US inventories report, where the market estimates a decrease of 2.3 million barrels. At the moment, the price of crude oil is up 0.55% and is trading at USD$66.41 per barrel. The impact of the pandemic in India is creating a partial supply reduction in the market. On the other hand, traders are watching the FED`s reaction to interest rates, which may put pressure on commodities. |
 |
| Support 1: 66.05 Support 2: 65.97 Support 3: 65.84 Resistance 1: 66.26 Resistance 2: 66.39 Resistance 3: 66.47 Pivot Point: 66.18 |
| Expected trading range between 65.84 and 66.47. Pivot point at 66.18. RSI in overbought zone. Price is above the Ichimoku cloud. Bulls continue with the mark at USD$70 per barrel. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
Risk Disclaimer
Any information/articles/materials/content provided by Capitalix or displayed on its website is intended to be used for educational purposes only and does not constitute investment advice or a consultation on how the client should trade.
Although Capitalix has ensured that the content of such information is accurate, it is not responsible for any omission/error/miscalculation and cannot guarantee the accuracy of any material or any information contained herein.
Therefore, any reliance you place on such material is strictly at your own risk. Please note that the responsibility for using or relying on such material rests with the client and Capitalix accepts no liability for any loss or damage, including without limitation, any loss of profit which may arise directly or indirectly from the use of or reliance on such information.
Risk Warning: Forex/CFDs trading involves significant risk to your invested capital. Please read and make sure that you fully understand our Risk Disclosure Policy.
You should ensure that, depending on your country of residence, you are allowed to trade Capitalix.com products. Please ensure that you are familiar with the company’s risk disclosure.