Daily review for November 26, 2021
Newly detected variant of Coronavirus sends global markets reeling. The Eurostoxx 50 falls 3.80%. Dow Jones falls 907 points, or 2.51%. The S&P500, as an indicator of retail sales, falls 2.05%. Today, traders are also focus on the performance of household consumption due to Black Friday.
WTI falls 6% due to the new variant of the virus, which could lead to the closure of air, land and sea borders globally, thus impacting commodities trade.
European indices fall sharply. The market is watching for statements from governments and from Christine Lagarde as ECB president. Austria closes its borders.
Investors take hedge in metals. Gold rises 1.27%.
| DOW JONES -2.10% |
| New Covid-19 variant discovered with origin in South Africa. Global stock futures fall sharply. Europe contemplates border closures. Two cases of the new variant were discovered in Hong Kong, so the virus could be spreading globally. The Dow Jones is currently down 2.10% and is trading at 35,103. Traders are aware of government announcements and Black Friday sales. Analysts are assessing the impact of inflation on retail sales. |
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| Support 1: 35,176.5 Support 2: 35,108.5 Support 3: 35,012.0 Resistance 1: 35,341.0 Resistance 2: 35,437.5 Resistance 3: 35,505.5 Pivot Point: 35,273.0 |
| The index is falling significantly. The three support points were overcome. Bulls are evaluating the best buy level. RSI in oversold zone. The index remains below the 200-day moving average. |
| WTI -6% |
| WTI price is falling sharply due to the identification of a new variant of Covid-19, which is being studied by scientists, but which is expected to be more contagious than previous variants. WTI is currently down 4.12% and is trading at USD$75.25 per barrel. The detection of a more dangerous variant would generate the closing of borders, which would stop the trade of raw materials at a global level. As a result, the market punishes equities. Similarly, the increase in the supply of crude oil is also causing the market to correct. |
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| Support 1: 75.51 Support 2: 75.28 Support 3: 74.98 Resistance 1: 76.04 Resistance 2: 76.34 Resistance 3: 76.57 Pivot Point: 75.81 |
| The price overcame the three main support points. At the moment it is at the level of USD$75 per barrel, where an important support is presented. If the bears overcome this point, the price could reach USD$70. RSI in oversold zone. Pivot point at USD$75.81. |
| DAX 40 -3.34% |
| Stock indexes in Europe are falling sharply. France’s CAC 40 is currently down 4.17%. Spain’s IBEX35 is down 4.18%. The DAX 40 is down 3.34%. The new variant of Covid-19 is pressuring the equity market. Austria closed its borders. Germany continues to require its population to be vaccinated. If the new variant is more dangerous, global air, land and sea borders closures could begin to occur, which would impact trade and business development. Traders are aware of scientists’ analysis of the new variant. |
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| Support 1: 15,437.0 Support 2: 15,377.0 Support 3: 15,305.0 Resistance 1: 15,569.0 Resistance 2: 15,641.0 Resistance 3: 15,701.0 Pivot Point: 15,509.0 |
| The Bears broke through all three support levels. Selling volume continues. RSI in oversold zone. Pivot point at 15,509. Bulls are watching for the level at which the selling stops. |
| GOLD +1.27% |
| Equities are under significant downward pressure from the new Covid-19 variant. Traders and investors have opted to start mitigating market volatility with metals. At the moment the price of gold is up 1.27% and is trading at USD$1,806 per Troy ounce. Silver is up 0.83% and is trading at USD$23.69 per Troy ounce. The VIX as a volatility indicator is at 16%. Traders are paying attention to the performance of e-commerce companies’ stocks, because of Black Friday and also because of the new variant of the virus. |
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| Support 1: 1,802.90 Support 2: 1,797.20 Support 3: 1,794.20 Resistance 1: 1,811.60 Resistance 2: 1,814.60 Resistance 3: 1,820.30 Pivot Point: 1,805.90 |
| Gold is below the 200-day moving average. Due to the volatility, the price broke through the three resistance levels, regaining the USD$1,800 zone. If the sell-off continues, gold could reach USD$1,841. Pivot point at USD$1,805. RSI in overbought zone. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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