Daily Review for May 11, 2021
Wall Street drags the market into a massive sell-off in technology stocks.
Global stocks are in the red as investors’ portfolio allocations are being adjusted.
OPEC will present its energy market outlook today. Crude Price sideway due to coronavirus problems in India. The Colonial Pipeline could be at normal capacity by the end of the week.
Europe opens in red. The top 50 EU companies are falling. The TecDAX drags down the DAX 30.
Gold and other metals begin to turn around and rebound. Possible further increase, if the equity market continues to fall.
| NASDAQ 100 -0.70% |
| Technology stocks selloff continue by hedge funds and investors globally. Market concerns about inflation are growing. In Asia, the Hang Seng fell 4%. Rising commodity prices are a sign of inflationary pressure in the market. An additional factor behind the fall of the Nasdaq 100 is the possible increase in the corporate tax on technology companies globally. |
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| Support 1: 13,229.72 Support 2: 13,193.93 Support 3: 13,171.98 Resistance 1: 13,287.46 Resistance 2: 13,309.41 Resistance 3: 13,345.20 Pivot Point: 13,251.67 |
| Price is below the Ichimoku cloud. Expected trading range between 13,171 and 13,345. Pivot point at 13,251. RSI at oversold level. Possible bounce towards the Pivot Point. If the Bears continue to gain ground, the next level to watch is 13,084. |
| CRUDE OIL -0.68% |
| Today, OPEC will present its monthly market report. Meanwhile, crude oil is down 0.68% and is trading at USD$64.42. Despite the cyber-attack on the Colonial pipeline, the price of crude oil did not reach over USD$70 per barrel, mainly due to the increase in cases of covid-19 in India (the third largest importer in the world) and because OPEC is starting to increase production. |
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| Support 1: 64.30 Support 2: 64.16 Support 3: 63.93 Resistance 1: 64.67 Resistance 2: 64.90 Resistance 3: 65.04 Pivot Point: 64.53 |
| Price is between support 1 and support 2. Possible move towards 63.88. Ichimoku cloud forecast sideway movement. RSI neutral. Trading range between 63.93 and 65.04. Price stabilization range for the moment. |
| DAX 30 -0.87% |
| Market opens red in Europe, in continuation on the massive sell-off in technology stocks. The indices with the biggest fall are FTSE100 (-1.94%), Euro Stoxx50 (-1.72%) and the CAC 40 (-1.62%). For its part, the DAX 30 is down 0.87%, pressured by the TecDAx which is down 2.10%. |
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| Support 1: 15,201.4 Support 2: 15,166.7 Support 3: 15,139.9 Resistance 1: 15,262.9 Resistance 2: 15,289.7 Resistance 3: 15,324.4 Pivot Point: 15,228.2 |
| Price broke the support 2 and is heading to support 3. If this level is broken, the index could fall to 15,100 points. Expected trading range between 15,139 and 15,324. Pivot point for trend change at 15,228. |
| GOLD -0.17% |
| Price of gold is moving sideways, although rapidly changing trend as the equity market continues to fall globally. Due to increased selling positions in technology stocks, investors continue to increase buying positions in gold to hedge uncertainty and inflation. |
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| Support 1: 1,832.40 Support 2: 1,830.80 Support 3: 1,827.95 Resistance 1: 1,836.85 Resistance 2: 1,839.70 Resistance 3: 1,841.30 Pivot Point: 1,835.25 |
| Price is above the Ichimoku cloud. Possible escalation towards 1,850 and 1,900. Trading range between 1,827 and 1,841. Pivot point at 1,835. RSI neutral. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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