Daily review for November 01, 2021
The Liberal Democratic Party (LDP) won the elections in Japan, securing most of the seats in parliament. The market celebrates the result, with the Nikkei 225 rising 1.82%.
Metals corrected a few points. Traders keep them on the radar due to inflation and the possible start of tapering by the Fed.
Global stock indices are in an uptrend, boosted by the Japanese election results.
Europe continues to be pressured by Natural Gas reserves. Russia is currently supplying the commodity’s needs. The price is correcting, although analysts see possible rallies, generated by the winter.
Silver is giving up some points, as traders start long positions in metals, to mitigate the effect of tapering in equities.
| GOLD –0.01% |
| Gold prices start the week with mixed movements, mainly due to inflation and the FOMC meeting. Gold is currently down 0.01% and is trading at USD$1,783 per Troy ounce. Traders are paying attention to the Fed’s inflation strategy. The institution had declared the start of tapering in November 2021, so market players are testing the scenarios regarding interest rates. At the moment, US fixed income is showing upward movements in 10-year bonds and downward movements in 30-year bonds. |
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| Support 1: 1,781.46 Support 2: 1,779.63 Support 3: 1,776.01 Resistance 1: 1,786.91 Resistance 2: 1,790.53 Resistance 3: 1,792.36 Pivot Point: 1,785.08 |
| Gold price is below the 200-day moving average. The price is recovering few points from the USD$1,770 zone. At this moment it is approaching the pivot point, so it could present a change of trend. Pivot point at USD$1,785. RSI neutral. |
| NASDAQ 100 +0.24% |
| Stock indexes are presenting upward movements, boosted by the results of the Japanese elections, where the Liberal Democratic Party (LDP) will keep the majority of the seats in parliament. Thus, investors celebrated by pushing the Nikkei 225 to 29,568 points, rising 1.82%. The Nasdaq 100, meanwhile, is currently up 0.24% and is trading at 15,886 points. On the other hand, the market is attentive to the results of COP26 meeting, where strategies to combat climate change will be discussed. |
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| Support 1: 15,869.5 Support 2: 15,858.3 Support 3: 15,846.8 Resistance 1: 15,892.2 Resistance 2: 15,903.7 Resistance 3: 15,914.9 Pivot Point: 15,881.0 |
| Price is at resistance 1. Expected trading range between 15,846 and 15,914. Pivot point for trend change at 15,881. RSI in overbought zone. The bullish channel is maintained, but it is beginning to visualize sideways above the 15,821 zone. |
| NATURAL GAS -2.97% |
| The price of Natural Gas is showing a significant correction of 2.97%. The commodity is currently trading at USD$5.39 per BTU. European inventories are still the lowest in a decade. Many members have stocks for 40 days of demand. However, Russia continues to supply European demand, and with that, prices are starting to drop from the resistance 3 level. Bulls are looking for a rebound from the actual level. |
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| Support 1: 5.349 Support 2: 5.332 Support 3: 5.300 Resistance 1: 5.398 Resistance 2: 5.430 Resistance 3: 5.447 Pivot Point: 5.381 |
| The price is at support 1, where an important floor was marked. Possible rebound from this area, looking for the pivot point level to confirm the change of trend. Pivot point at USD$5.38. RSI leaving the oversold zone. If the temperature continues to drop, the demand for the commodity would increase, and so would the prices. |
| SILVER -0.11% |
| Inflation remains on traders’ radar, so long positions in safe-haven assets are maintained. Metals prices are giving up a few points, while stock market indices are moving upwards on the back of the Japanese election results. At the moment the price of silver is dropping 0.11% and is trading at USD$23.91 per Troy ounce. November could be an interesting month for metals, as it is the month when the first phase of the tapering announced a few months ago by the FED begins. |
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| Support 1: 23.855 Support 2: 23.812 Support 3: 23.737 Resistance 1: 23.973 Resistance 2: 24.048 Resistance 3: 24.091 Pivot Point: 23.930 |
| The price is below the 200-day moving average. Expected trading range between USD$23.73 and USD$24.09. Pivot point for trend change at USD$23.93. RSI neutral. Possible sideways movement as long as the trend is confirmed. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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