Daily review for October 12, 2021
Stock indices start the day with negative movements, generated by inflationary pressure.
Wall Street continues to correct, as well as equities in Europe and Asia.
Traders are aware to the JOLT survey, to continue evaluating US economic projections. Goldman Sachs maintains its outlook of the US GDP.
Bitcoin and cryptos continue to rise. New York and Texas consolidate as the cryptoasset mining states in the US.
Energy demand continues to outstrip supply. Energy commodity prices continue to rise.
| DOW JONES -0.33% |
| A new corporate earnings season begins. Analysts continue to evaluate the performance of companies in Q3 2021. In Q2, financial companies and banks presented significant growth and increases in their balance sheets. Similarly, technology companies showed an increase in demand for goods and services. In Q3, the sector of greatest interest is Commodities. With the advancement of vaccines and the easing of restrictions, commodity companies are starting to distribute commodities on a large scale, and with it, an interesting volatility for traders in the market. At the moment, the Dow Jones is down 0.33% and is trading at 34,382. |
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| Support 1: 34,344.7 Support 2: 34,319.0 Support 3: 34,300.7 Resistance 1: 34,388.7 Resistance 2: 34,407.0 Resistance 3: 34,432.7 Pivot Point: 34,363.0 |
| Expected trading range between 34,300 and 34,432. Pivot point for trend change at 34,363. Neutral RSI coming out of the oversold zone. The index is at support 1, where it could bounce towards the pivot point to confirm the trend change. |
| BITCOIN +0.44% |
| Bitcoin is currently up 0.44% and is trading at USD$56,759. The crypto market rally continues. The United States has taken an inclusive stance with the market. In recent days, the SEC communicated that it does not intend to restrict crypto trading. For their part, the states of New York and Texas are the largest crypto mining hotspots in the region. On the other hand, Bulls maintain the next target at USD$60,000 with support at USD$55,000. The most optimistic ones project the price at USD$75,000. |
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| Support 1: 56,709.1 Support 2: 56,426.6 Support 3: 56,260.7 Resistance 1: 57,157.4 Resistance 2: 57,323.4 Resistance 3: 57,605.8 Pivot Point: 56,875.0 |
| The price is still above the 200-day moving average. At the moment, the price is at resistance 1. If it manages to overcome this level, the next resistance is at USD$58,502. Pivot point at USD$56,875. Neutral RSI approaching the overbought zone. |
| WTI +0.48% |
| The uptrend in crude oil continues. It is currently up 0.48% and is trading at USD$80.91 per barrel. Due to the energy rationing, the prices of commodities in the energy segment, including Natural Gas, WTI, Brent and thermal Coal continue to rise. OPEC meanwhile continues to increase production by 400,000 barrels per day. Gulf of Mexico production is reaching full installed capacity production levels. Saudi Aramco is starting to send more ships to Asia, and Russia is starting to send more crude to its refineries. All of the above, to meet market demand. |
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| Support 1: 80.39 Support 2: 80.32 Support 3: 80.28 Resistance 1: 80.50 Resistance 2: 80.54 Resistance 3: 80.61 Pivot Point: 80.43 |
| Expected trading range between USD$80.28 and USD$80.61. Pivot point for trend change at USD$80.43. RSI neutral, so the price could continue to climb towards the level of USD$83.15. |
| NASDAQ 100 -0.52% |
| The tech index is currently correcting 0.52% and is trading at 14,629. Traders are waiting for the JOLT survey which measures the number of available jobs in the United States. This time, the market is expecting at least 10.925M. On the other hand, the Fed’s talking point continues to be inflation. The target is 2% per year. However, the rising debt ceiling may generate inflationary pressure, so FOMC members are evaluating the best possible tools to contain it. |
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| Support 1: 14,680 Support 2: 14,570 Support 3: 14,461 Resistance 1: 14,828 Resistance 2: 14,900 Resistance 3: 15,009 Pivot Point: 14,752 |
| Price is below the 200-day moving average. Pivot point for trend change at 14,752. Expected trading range between 14,752. RSI neutral so the index could look for the 14,389 zone. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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