Daily review for October 05, 2021
OPEC decided to maintain its strategy of increasing daily production by 400,000 barrels of crude oil to meet current market demand, driven by rising energy prices.
Massive sell-off in the shares of technology companies. Operational damage from Facebook, Instagram and Whatsapp, further boosted shorts.
Macroeconomic data day in Europe. Analysts forecast economic expansion. ECB President Christine Lagarde to announce the bank’s analysis of the economic environment.
Gold prices correct from the USD$ 1,770 area. However, traders keep the metal on the radar, due to possible correction in equities derived from the discussions between Republicans and Democrats on the U.S. debt ceiling.
| WTI +0.13% |
| WTI continues its upward trend. OPEC concluded that it will maintain its strategy of increasing production by 400,000 barrels per day. This is in order to cover market demand, which has increased due to the rise in energy prices. WTI is currently up 0.13% and is trading at USD$77.73 per barrel. Today, traders are keeping an eye on US inventories. API estimates a drawdown of 2.3 million barrels. However, analysts see an increase in inventories, considering that the Gulf of Mexico is already returning to the market with full production capacity. |
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| Support 1: 77.78 Support 2: 77.72 Support 3: 77.64 Resistance 1: 77.92 Resistance 2: 78.00 Resistance 3: 78.06 Pivot Point: 77.86 |
| Crude oil is above the 200-day moving average. The Ichimoku Cloud projects the price between USD$77.45 and USD$75.95. Pivot point for trend change at USD$77.86. RSI in overbought zone. If the trend continues, the next target level is USD$80 per barrel. |
| NASDAQ 100 +0.25% |
| The index of technology companies in the United States is up 0.25% trying to rebound after yesterday’s negative close. The index closed with a drop of 2.14% generated by a massive sell-off in the shares of technology companies. In addition to the above, Facebook group of companies, including Whatsapp and Instagram, presented a 6-hour drop in activity, which affected users’ operability. The market punished Facebook shares, which fell 4.89%. Traders evaluate the probability of a rebound, to take long positions in the index. |
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| Support 1: 14,497.6 Support 2: 14,479.8 Support 3: 14,464.3 Resistance 1: 14,530.9 Resistance 2: 14,546.4 Resistance 3: 14,564.2 Pivot Point: 14,513.1 |
| The price is below the 200-day moving average. The index is looking for a rebound from the support 1. At this moment the price is close to the pivot point, so it could generate a change of trend. Trading range between 14,464 and 14,564. Pivot point at 14,513. RSI neutral. |
| EUROSTOXX 50 +0.29% |
| Macroeconomic data day in Europe. We start the day with the services PMI in Spain (58 ex.), then we will have the services PMI in Italy (56.65 ex.), France (56 ex.), Germany (56 ex.), Eurozone (56.3 ex.) and UK (54.6 ex.). Then we will have statements from ECB President Christine Lagarde. The results expected by analysts, present a perspective of economic expansion. If this is the case, the European stock indexes could show upward movements today. The Eurostoxx 50 is currently up 0.29%. |
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| Support 1: 3,989 Support 2: 3,984 Support 3: 3,978 Resistance 1: 4,000 Resistance 2: 4,006 Resistance 3: 4,011 Pivot Point: 3,995 |
| The price is below the 200-day moving average. If the index continues the upward movement, it could reach the pivot point where a change of trend could be confirmed. Trading range between 3,978 and 4,011. The Bulls are looking to regain the 4,000 point zone. |
| GOLD -0.50% |
| Gold is currently down 0.50%, and is trading at USD$1,758 per Troy ounce. Equities are showing mixed movements, and investors are starting to reallocate into fixed income. Treasury yields are currently up 1% for the 10-year bond and 0.22% for the 10-year bond. Gold is correcting from the USD$1,770 area as a possible rebound in equities is confirmed. If not, traders could buy back the metal. Commodities are presenting mixed movements, this time favoring the uptrend in the agricultural segment. |
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| Support 1: 1,758.10 Support 2: 1,756.85 Support 3: 1,755.75 Resistance 1: 1,760.45 Resistance 2: 1,761.55 Resistance 3: 1,762.80 Pivot Point: 1,759.20 |
| Despite the correction, the price is still above the 200-day moving average. At this moment, the price is between the pivot point and support 1, which could generate a change of trend. Expected trading range between USD$1,755 and USD$1,762. Pivot point at USD$1,759. RSI neutral. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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