Daily review for November 10, 2021
The market is aware of the inflation data in the United States. In Europe, Germany reported a monthly inflation figure for October 2021 of 0.5%. The FED, the ECB and the BUBA are evaluating strategies to reduce it and reach the 2% annual target.
Traders increase exposure in metals. Equity corrections are expected ahead of the Christmas rally.
Crude oil inventories decreased in the US by 2.4 million barrels. The price starts to look for USD$85 per barrel.
Walt Disney presents results. The market is watching for a possible rebound in the Dow Jones.
| GOLD -0.22% |
| Traders are keeping an eye on the US inflation data. Analysts expect it to be 0.4% for the month of October 2021. On an annual basis, 4.3% is expected. The market continues to discount inflation. This caused global stock indices to close in negative territory. Traders remain bullish on metals. At the moment the gold price is correcting 0.22% and is trading at USD$1,827 per Troy ounce. Silver continues in positive territory, rising 0.12% and is trading at USD$24.34 per Troy ounce. |
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| Support 1: 1,826.49 Support 2: 1,824.82 Support 3: 1,823.69 Resistance 1: 1,829.29 Resistance 2: 1,830.42 Resistance 3: 1,832.09 Pivot Point: 1,827.62 |
| The price is still above the 200-day moving average. It is currently between support 1 and the pivot point. The Ichimoku cloud is projecting upward movement. Trading range between USD$1,823 and USD$1,832. RSI neutral. |
| WTI +0.32% |
| According to API, crude oil inventories in the United States decreased by 2.4 million barrels. Today, traders expect to confirm this decline with the report from Cuching, Oklahoma. If inventories continue to decline, it is a sign that demand continues to increase, and with it, the price of crude oil and its derivatives. The opening of air borders has generated hedging in jet fuel futures by airlines. WTI is currently up 0.32% and is trading at USD$84.42 per barrel. |
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| Support 1: 84.29 Support 2: 84.18 Support 3: 84.06 Resistance 1: 84.52 Resistance 2: 84.64 Resistance 3: 84.75 Pivot Point: 84.41 |
| The price is at resistance 1, where a double top was formed. If the Bulls manage to overcome this resistance zone, it could generate the bullish channel towards USD$88.36 per barrel. Pivot point at USD$84.41. RSI approaching the overbought zone. |
| DAX 40 +0.09% |
| Inflation in Germany stood at 0.5% in October 2021, meeting market expectations. Traders are now looking forward to the press conference of BUBA (German Central Bank) President Weidmann, who will speak about Germany’s economic outlook. Meanwhile, the DAX 40 is currently up 0.09% and is trading at 16,044. Elsewhere, in Europe, traders are keeping an eye on Italian industrial production and the unemployment rate in Portugal. |
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| Support 1: 16,003.6 Support 2: 15,984.3 Support 3: 15,972.1 Resistance 1: 16,035.1 Resistance 2: 16,047.3 Resistance 3: 16,066.6 Pivot Point: 16,015.8 |
| The index remains above the 200-day moving average. It is currently between resistance 1 and the pivot point. If the uptrend continues, it could reach resistance 2 at 16,117. Pivot point at 16,015. RSI neutral. |
| DOW JONES -0.11% |
| Traders are on the lookout for a possible rebound in stock indexes. Asian markets remain in negative territory. The market in Europe starts to turn positive. Inflation is once again playing an important role in the analysis for the end of 2021. Meanwhile, traders are waiting for Walt Disney’s results. EPS of 0.51 and operating income of USD$18.82 billion are expected. The equity market continues to set all-time highs. Analysts are watching for possible corrections before the Christmas rally. |
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| Support 1: 36,211.6 Support 2: 36,179.3 Support 3: 36,159.6 Resistance 1: 36,263.6 Resistance 2: 36,283.3 Resistance 3: 36,315.6 Pivot Point: 36,231.3 |
| The index continues above the 200-day moving average. It is currently at the pivot point, where it could generate a change of trend. Trading range between 36,159 and 36,315. Pivot point at 36,231. RSI neutral. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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