Daily Review for May 13, 2021
Blow to the crypto market by Elon Musk. Tesla suspends Bitcoin as a payment method for the time being.
Bitcoin falls 11% to the USD$50,000 support.
The annualized inflation figure of 4.3% in the US generated massive sell-off in equities.
The gold price does not react so far. It remains at USD$1,820 per Troy ounce. Investors are hesitant about hedging instruments.
In Europe, the market opens in red with main declines in Italy and the EuroStoxx 50.
| BITCOIN -11.18% |
| Elon Musk shakes the market again. This time, after a tweet where he showed his concern about the environmental impact of Bitcoin mining. For that reason, he decided to suspend the cryptocurrency as a payment method at Tesla for the time being. Following the announcement, Bitcoin began falling, as did most cryptos globally. At the moment the price is falling 11.18% and is trading at USD$50,968. |
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| Support 1: 50,538.3 Support 2: 50,197.0 Support 3: 49,934.1 Resistance 1: 51,142.5 Resistance 2: 51,405.4 Resistance 3: 51,746.7 Pivot Point: 50,801.2 |
| Price rebounded from support 3 and is now struggling at support 2. Many analysts see these declines as a buying opportunity. Bearish pressure. RSI on oversold. Significant selling volume. Trading range between 49.934 and 51.746. Pivot Point at 50.801. |
| NASDAQ 100 +0.40% |
| The US inflation report (0.9% vs. 0.3% expected), surprised the market and generated massive sell-offs in stocks of companies from different sectors. For example, the Dow Jones fell 680 points. Today, Wall Street index futures started in positive territory, although the interest rate hike alert is still on the radar. The Nasdaq 100 is currently up 0.40% and is trading at 13,046. |
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| Support 1: 12,992.38 Support 2: 12,971.88 Support 3: 12,937.76 Resistance 1: 13,047.00 Resistance 2: 13,081.12 Resistance 3: 13,101.62 Pivot Point: 13,026.50 |
| The price is below the 25- and 50-day moving average. It is also below the 50% Fibonacci retracement level. RSI neutral. Bears target is 12,900. Pivot point at 13,026. |
| GOLD -0.09% |
| The US inflation figure, on an annual basis, is 4.3%, which is 2.3% above the FED inflation target of 2%. Despite this, gold price did not scale strong positions and remained at the 1,820 level. Gold is currently down 0.09%. Analysts forecasted the price of the metal above 1,850 to 1,890. However, traders interest in gold until the moment has not been evident. |
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| Support 1: 1,815.61 Support 2: 1,814.08 Support 3: 1,812.26 Resistance 1: 1,818.96 Resistance 2: 1,820.78 Resistance 3: 1,822.31 Pivot Point: 1,817.43 |
| Expected trading range between 1,812 and 1,822. Pivot point for change in trend at 1,817. RSI neutral. Possible reaction to the US Unemployment Claims and PPI data. |
| DAX 30 -0.75% |
| Market opens in red in Europe, with major declines in the Italian and British stock exchanges. The Euro Stoxx 50 is currently down 1.32%. DAX 30 is also down 0.75%. The inflationary impact of the US continues to manifest in Europe. On the economic calendar, there are no ECB announcements scheduled for today. The FED will present some messages today in continuation to the economic data. |
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| Support 1: 15,008.0 Support 2: 14,991.0 Support 3: 14,962.0 Resistance 1: 15,054.0 Resistance 2: 15,083.0 Resistance 3: 15,100.0 Pivot Point: 15,037.0 |
| Price is between support 1 and support 2. If it manages to break out of this zone, the index would be reaching the pivot point of 15,037, which could create a change of trend. If the markets manage to calm down, we could see a move towards 15,104. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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