Daily Review for May 12, 2021
OPEC remains conservative on demand forecasts. U.S. inventories begin to decline.
Colonial pipeline could enter full operating capacity by the end of the week.
Stock markets continue to fall. On Wall Street, traders are aware of US inflation data.
Investors’ interest in gold increases. Market volatility increases as does uncertainty.
The global USD money supply increases due to the commodity super cycle. EURUSD manages to hold above 1.2000.
| CRUDE OIL +0.42% |
| OPEC maintained the demand forecasts at 5.95 million barrels per day. On the other hand, the API inventories report showed a reduction of 2.5 million barrels in US inventories. Today, we will have the EIA report. Meanwhile, the price of crude oil is up 0.42% and is trading at USD$65.64 per barrel. |
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| Support 1: 65.27 Support 2: 65.19 Support 3: 65.10 Resistance 1: 65.44 Resistance 2: 65.53 Resistance 3: 65.61 Pivot Point: 65.36 |
| Crude oil has been oscillating between the range of 63.65 and 66. Price is above the 25-day and 50-day moving average. RSI approaching the overbought zone. Pivot point at 65.36. |
| NASDAQ 100 -0.59% |
| Important day for the index. Traders are aware of the US inflation data. The market expects a 0.3% monthly reading for April. If the figure is higher than expected, the stock markets could see a larger correction than the one seen yesterday. For the moment, the market remains in red, with the index down 0.59% and trading at 13,269. |
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| Support 1: 13,228.28 Support 2: 13,210.95 Support 3: 13,182.15 Resistance 1: 13,274.41 Resistance 2: 13,303.21 Resistance 3: 13,320.54 Pivot Point: 13,257.08 |
| The price is below the 50% of the Fibonacci retracement level. It is also below the short- and medium-term moving average. Expected trading range between 13,182 and 13,320. Pivot point at 13,257. RSI neutral. |
| GOLD -0.01% |
| Important day for gold. Today we will have the US inflation data. Concerns about inflation have led to market correction. If the data is higher than expected, we could see an additional correction today. Therefore, gold is likely to have bullish movements prior to the data release. The market does not like uncertainty, and investors are beginning to hedge their portfolios with gold and other commodities as well. |
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| Support 1: 1,830.95 Support 2: 1,827.05 Support 3: 1,825.05 Resistance 1: 1,836.85 Resistance 2: 1,838.85 Resistance 3: 1,842.75 Pivot Point: 1,832.95 |
| The price is coming out of the Ichimoku cloud. It is between resistance 1 and support 1. If it manages to overcome resistance 1, the next level to watch is 1,846. Expected trading range between 1,825 and 1,842. Pivot point at 1,832. Bulls target 1,850. |
| EURUSD -0.12% |
| At this moment market can be described as, commodities super cycle, inflation concerns, cautious central banks and the USD depreciating. At the moment the EURUSD is down 0.12% and is trading at 1.2133. Analysts expect an increase in the money supply to force the FED and ECB to raise interest rates in the short term. |
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| Support 1: 1.2122 Support 2: 1.2114 Support 3: 1.2106 Resistance 1: 1.2139 Resistance 2: 1.2146 Resistance 3: 1.2155 Pivot Point: 1.2130 |
| The currency has managed to remain above 1.2000. Expected trading range today between 1.2106 and 1.2155. Pivot point at 1.2130. RSI neutral. Possible sideways, while the US inflation data is presented. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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