Daily review for October 04, 2021
Evergrande suspends trading of its stock on the Hong Kong Stock Exchange. Gold remains in traders’ portfolios. Volatility is expected.
Pandora papers expose companies and leaders in offshore locations globally.
OPEC meeting to decide whether to maintain, reduce or increase the production level. WTI remains sideways above USD$75 awaiting the conclusions of the meeting.
Eurogroup meets to assess the economic outlook and the performance of the Euro. EURUSD seeks to regain the 1.1600 level.
| DOW JONES -0.09% |
| Trading week begins, with several topics of interest on traders’ radars. Among them, the suspension of Evergrande shares in the Hong Kong Stock Exchange, Pandora’s papers, OPEC meeting and Eurogroup meeting. Starting with Evergrande, the suspension of the stock was done to mitigate the volatility that the asset could have, due to the restructuring process that the company is carrying out. On the other hand, the Pandora papers are an investigation of lawyers and auditors on offshore companies, where they have exposed world leaders. We will also have the OPEC meeting, where they seek to evaluate the increase in daily oil production. Finally, the Eurogroup meets to evaluate monetary policy regarding the Euro. Meanwhile, the Dow Jones starts the week with a correction of 0.09%. |
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| Support 1: 34,170.9 Support 2: 34,140.7 Support 3: 34,091.4 Resistance 1: 34,250.4 Resistance 2: 34,299.7 Resistance 3: 34,329.9 Pivot Point: 34,220.2 |
| The price is below the 200-day moving average. It is currently between resistance 1 and the pivot point. The Ichimoku cloud projects the price towards the 33,990 area. Pivot point at 34,220. RSI neutral. |
| WTI -0.21% |
| WTI price starts the week with a 0.21% drop, trading at USD$75.75 per barrel. OPEC will meet today to assess the current level of demand in order to decide whether to maintain or test the production increase of 400,000 barrels per day, or to modify the amount. During the last month, oil prices have risen significantly due to the significant increase in energy demand in Europe and the cut in production in the Gulf of Mexico. At the moment, the market is waiting for OPEC’s conclusions and traders are starting to trade positions for the winter. |
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| Support 1: 75.51 Support 2: 75.44 Support 3: 75.35 Resistance 1: 75.67 Resistance 2: 75.76 Resistance 3: 75.83 Pivot Point: 75.60 |
| The price is above the 200-day moving average. At the moment it is at an important triple top at USD$75.83. If the Bulls manage to overcome this zone, the price could head towards USD$77.05. Pivot point at USD$75.60. RSI neutral. |
| GOLD +0.18% |
| Gold prices start the week with an upward movement, climbing 0.18% and trading at USD$1,761 per Troy ounce. Traders begin to take positions in the metal, anticipating volatility in the markets derived from the announcements made by Evergrande. The company’s shares were suspended in the Stock Exchange, so the company could present the sale of its shares to another business group, or it could declare default, or it could continue negotiating the corporate restructuring process with creditors. |
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| Support 1: 1,759.21 Support 2: 1,757.48 Support 3: 1,756.11 Resistance 1: 1,762.31 Resistance 2: 1,763.68 Resistance 3: 1,765.41 Pivot Point: 1,760.58 |
| The price is above the 200-day moving average. Expected trading range between USD$1,756 and USD$1,765. Pivot point for trend change at USD$1,760. Neutral RSI approaching the overbought zone. |
| EURUSD +0.03% |
| EURUSD starts the week rising 0.03% and trading at 1.1597. The Eurogroup will discuss the economic outlook and the performance of the Euro. Over the last week, the USD has appreciated against the Euro. Traders are evaluating the NFP where analysts expect at least 460,000 new jobs to be created. This week we will also see the Euro-Zone Trade Balance data, which could be a trend reference in the currency. |
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| Support 1: 1.1591 Support 2: 1.1586 Support 3: 1.1583 Resistance 1: 1.1599 Resistance 2: 1.1602 Resistance 3: 1.1607 Pivot Point: 1.1594 |
| EURUSD is below the 200-day moving average. The currency is at resistance 1. The Ichimoku cloud projects the price between 1.1623 and 1.1580. Good rebound from 1.1570 support. Pivot point for trend change at 1.1594. RSI neutral. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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