Daily review for November 05, 2021
Berkshire Hathaway reports results today.
Analysts expect the creation of at least 450,000 new non-farm jobs.
The estimated unemployment rate in the United States is 4.7%.
Traders increase positions in metals, expecting volatility in equities, derived from tapering and NFP.
Significant increase in cases of new variants of Covid-19 in China alerts WHO. Nasdaq 100 index begins to turn trend.
OPEC+ moves away from US strategy. The organization will not increase production levels, so market demand could continue to outstrip supply, thus continuing the rally in energy commodity prices.
| GOLD +0.21% |
| Metals begin to trend higher as traders prepare strategies for the NFP. Analysts expect at least 450,000 new non-farm jobs to be created. The market’s main concern is the effect of tapering on the economy in the short term. The expected unemployment rate in the U.S. is 4.7%. If the NFP exceeds the estimate and the unemployment rate is lower than expected, there could be upward movement in equities. Otherwise, upward movement in metals and fixed income. At the moment, the price of gold is up 0.21% and is trading at USD$1,797 per Troy ounce. |
 |
| Support 1: 1,795.41 Support 2: 1,793.88 Support 3: 1,792.51 Resistance 1: 1,798.31 Resistance 2: 1,799.68 Resistance 3: 1,801.21 Pivot Point: 1,796.78 |
| The price is at resistance 1, looking for the USD$1,808 area. Long positions had managed to keep the price above the 200-day moving average. Pivot point for trend change at USD$1,796. Neutral RSI coming out of the overbought zone. |
| NASDAQ 100 -0.01% |
| Cases of covid-19 and new variants continue to increase globally. China announced a significant increase in cases of a new variant in several of its main cities. At the moment, scientists and the WHO are evaluating the effects, and the possible global impact. As a result, the Nasdaq 100 index could confirm the upward trend and consolidate above 16,000 points. During the pandemic, technology stocks have done well due to the increased demand for e-commerce. At the moment, the Nasdaq 100 is down 0.01% and is trading at 16,343 points. |
 |
| Support 1: 16,347.0 Support 2: 16,342.1 Support 3: 16,339.0 Resistance 1: 16,355.0 Resistance 2: 16,358.1 Resistance 3: 16,363.0 Pivot Point: 16,350.1 |
| The index continues above the 200-day moving average. It is currently at resistance 1. Expected trading range between 16,339 and 16,363. Pivot point for trend change at 16,350. RSI in overbought zone, so it could present a slight correction over the support 1. |
| WTI +1.12% |
| OPEC+ announced that it will not increase oil production, so crude oil prices and derivatives continue to rise. WTI is currently up 1.12% and is trading at USD$79.69 per barrel. The OPEC+ decision sends a signal to the market that supply will remain at the current level. In other words, demand continues to be higher than apparent supply. Thus, we could see additional rallies in energy commodity prices in the coming days. The banks’ projection of WTI at USD$100 per barrel by the end of the year remains unchanged. |
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| Support 1: 79.03 Support 2: 78.88 Support 3: 78.59 Resistance 1: 79.47 Resistance 2: 79.76 Resistance 3: 79.91 Pivot Point: 79.32 |
| Despite the price rally, WTI is still below the 200-day moving average. However, it is approaching the Pivot Point, where a change in trend could be confirmed. Trading range between USD$78.59 and USD$79.91. Pivot Point at USD$79.32. RSI neutral. |
| SILVER +0.09% |
| Investors started buying silver volumes at support 3, right on the Fed’s announcement to start tapering. From there, the price has managed to bounce back to the USD$24.07 area and has managed to hold at the resistance 1. At the moment, silver price is up 0.09% and is trading at USD$23.93 per Troy ounce. Today, traders are aware of the NFP and the unemployment rate in the United States. The equity market continues to show new all-time highs. Demand for real sector goods and services is also on the rise and with it the physical demand for silver for industrial usage. |
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| Support 1: 23.888 Support 2: 23.868 Support 3: 23.838 Resistance 1: 23.938 Resistance 2: 23.968 Resistance 3: 23.988 Pivot Point: 23.918 |
| The price is right at the level of the 200-day moving average. Bulls are looking to consolidate the current level to climb towards USD$24.51 per Troy ounce. Expected trading range between USD$23.83 and USD$23.98. Pivot point at USD$23.91. RSI neutral. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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