Daily Review for May 10, 2021
Cyber-attack at the Colonial oil pipeline in the U.S. Crude oil supply on oil reserves fall. Prices start to move up.
Market uncertainty impulse gold demand.
Global futures mixed. Gradually turning positive on the back of low interest rates, which is favorable for equities.
DAX 30, approaching 15,500. Bulls are looking for 16,000.
Dow Jones in an uptrend and if buying volume is sustained, it could reach the 35,000 level.
| CRUDE OIL +0.80% |
| Due to the cyber-attack on oil pipelines in the USA, Traders are expecting significant volatility in the crude oil market. The reduction in supply caused by the attack, boost prices on crude and oil derivatives. Crude is currently up 0.80% and is trading at USD$65.51 per barrel. Lower supply and lower inventories in the USA are expected in the short term. The main target of the attack was the Colonial pipeline, which is the largest in the USA. |
 |
| Support 1: 65.16 Support 2: 65.04 Support 3: 64.95 Resistance 1: 65.37 Resistance 2: 65.46 Resistance 3: 65.58 Pivot Point: 65.25 |
| Uptrend due to supply reduction. Expected trading range between 64.95 and 65.58 with possible escalation towards 68. Pivot point at 65.25. RSI neutral but approaching overbought zone. Price approaching resistance 2. |
| GOLD +0.20% |
| NFP data was below market expectations which growth uncertainty and with it the price of gold advanced to the current level of USD$1,833 per Troy ounce. Gold’s performance will depend on bond yields and the recovery of equity indices. Also, the metal has started to replace Bitcoin positions as a inflation hedge in investors’ portfolios. |
 |
| Support 1: 1,833.55 Support 2: 1,831.80 Support 3: 1,828.85 Resistance 1: 1,838.25 Resistance 2: 1,841.20 Resistance 3: 1,842.95 Pivot Point: 1,836.50 |
| The Bulls’ next target is 1,851 equivalent to the 200-daily moving average. Price is in an ascending channel. RSI in overbought zone. Possible correction to the nearest support. Trading range between 1.828 and 1.842. Pivot point at 1,836. |
| DAX 30 -0.11% |
| European markets opened mixed, although all are gradually turning positive. Despite the poor non-farm employment data in the US, the equity market recovered and is headed towards record highs. Given actual economic conditions, interest rates should remain at current levels for a longer period of time. That favors the stock market. The DAX 30 is currently down 0.11%, but remains into the upward channel. |
 |
| Support 1: 15.400,9 Support 2: 15.369,2 Support 3: 15.350,4 Resistance 1: 15.451,4 Resistance 2: 15.470,2 Resistance 3: 15.501,9 Pivot Point: 15.419,7 |
| Expected trading range between 15,350 and 15,501. Pivot point at 15,419. Price is at resistance 1. If it manages to pass this level, the next price could be 15.500. RSI coming out of the overbought level. |
| DOW JONES +0.18% |
| As the week begins, Wall Street index futures open mixed. The Dow Jones is up 0.18%, while the S&P500 and Nasdaq 100 are in negative territory. The NFP data showed that the economic recovery is still some way off, so interest rates could remain at the current level for some time to come. This is a driving force for the market. Another factor to consider now is the attack on the Colonial pipeline in the USA, which could cause upward movements in Dow Jones stocks, mainly those directly related to the oil industry. |
 |
| Support 1: 34,769.6 Support 2: 34,752.3 Support 3: 34,741.6 Resistance 1: 34,797.6 Resistance 2: 34,808.3 Resistance 3: 34,825.6 Pivot Point: 34,780.3 |
| The price is above the Ichimoku cloud. The index is at resistance 1. Pivot point at 34.780. Trading range between 34.741 and 34.825. Bulls are targeting 35,000. Bullish trend. |
| 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.