Daily Review for May 17, 2021
New tweet from Elon Musk, drags cryptocurrencies. According to him, Tesla started to liquidate its position in Bitcoin.
Bitcoin falls 8% and enters the USD$44,000 zone.
Wall Street indices in red. Analysts expect the FED interest rate reaction.
Dow Jones sideways above resistance 1.
The correlation between the crypto market and the Nasdaq 100 is increasing. The index remains under pressure from the bears.
DAX 30 seeks to advance from resistance 1. In Europe new contracts with Pfizer estimate an acceleration of the vaccine. Scientists, however, analyze the Indian strain.
| BITCOIN -8.86% |
| Bitcoin and in general the crypto market is falling sharply as a result of Elon Musk twit, in which he commented that Tesla had begun to sell the position they have in Bitcoin. The cryptocurrency is currently down 8.86% and is trading at USD$44,370. |
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| Support 1: 43,748.6 Support 2: 43,157.3 Support 3: 42,861.6 Resistance 1: 44,635.6 Resistance 2: 44,931.3 Resistance 3: 45,522.6 Pivot Point: 44,044.3 |
| The price is approaching the 38.2% Fibonacci retracement level. It is also below the 25-day moving average. Bears are targeting the 40,000 area. Pivot point at 44,044. Expected trading range between 42,861 and 45,522. |
| DOW JONES -0.21% |
| Wall Street futures start the week in red. Interesting volatility is expected, mainly due to the FED reaction to the turbulence in the markets. Dow Jones is down 0.21% and is trading at 34,249. Traders are analyzing the next trend. Strategy remains in selling technology stocks and buying commodities. Analysts expect a possible interest rate hike in the short term. |
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| Support 1: 34,216,1 Support 2: 34,196,8 Support 3: 34,162,6 Resistance 1: 34,269,6 Resistance 2: 34,303,8 Resistance 3: 34,323,1 Pivot Point: 34,250,3 |
| Expected trading range between 34,162 and 34,323. Pivot point for change in trend at 34,250. The price crossed the Ichimoku cloud and is heading to the sideways zone at 34,363. RSI is near the overbought zone. |
| NASDAQ 100 -0.15% |
| The tech index continues to be under pressure from the massive sell-off in tech stocks globally. Also, the correlation between the crypto market and the Nasdaq 100 is increasing, so the impact of one is evident in the other. At the moment, the index is down 0.15% and is trading at 13,369. |
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| Support 1: 13,347.88 Support 2: 13,334.25 Support 3: 13,309.38 Resistance 1: 13,386.38 Resistance 2: 13,411.25 Resistance 3: 13,424.88 Pivot Point: 13,372.75 |
| The price is trying to climb upwards and is currently at resistance 1. If it manages to overcome this, the next possible level is 13,411. On the other hand, if the decline continues, the pivot point could indicate a change of trend. RSI in overbought zone. Pivot point at 13.372. |
| DAX 30 -0.05% |
| The week begins in the European stock markets, and the futures present a mixed scenario. The DAX is down 0.05% and is trading at 15,457 points. Italy’s MIB is the main riser with +0.63%. In Europe, vaccines are gradually accelerating. New supply contracts have been signed with Pfizer. The UK is also accelerating the campaign. EU members are evaluating the best strategy for the summer. On the other hand, scientists are concerned about the Indian strain. |
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| Support 1: 15,409.4 Support 2: 15,400.7 Support 3: 15,384.4 Resistance 1: 15,434.4 Resistance 2: 15,450.7 Resistance 3: 15,459.4 Pivot Point: 15,425.7 |
| Expected trading range between 15,384 and 15,459. Pivot point at 15,425. The price continues to recover part of last week’s losses, and at this moment is coming out of resistance 1. RSI in overbought zone. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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