Daily review for October 13, 2021
The market is aware to the U.S. inflation level. Analysts estimate it at 4% annually. Economists are concerned about the increase that could be generated by the extension of the US debt ceiling. Traders begin to take bullish positions in gold.
European stock indices are in negative territory, also due to the inflationary effect.
Crude oil falls a few points, and now the focus is on API inventories. An increase in supply is expected.
Bitcoin corrects. It is currently at the pivot point. Possible floor at USD$54,500.
| GOLD +0.22% |
| Traders are aware on the U.S. inflation data. Analysts estimate an annual result of 4%. The Fed’s inflation target is 2% per year. The main fear of economists, including Janet Yellen, is that the extension of the debt ceiling will generate more inflation. For its part, the FED continues to work on the best strategy to keep inflation at its current level. In the meantime, gold is moving upwards, increasing 0.22% and trading at USD$1,762 per Troy ounce. |
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| Support 1: 1,761.59 Support 2: 1,760.32 Support 3: 1,759.59 Resistance 1: 1,763.59 Resistance 2: 1,764.32 Resistance 3: 1,765.59 Pivot Point: 1,762.32 |
| The price is above the 200-day moving average. Expected trading range between USD$1,759 and USD$1,765. Pivot point for trend reversal at USD$1,762. Possible rebound before the US inflation data. |
| EUROSTOXX 50 -0.01% |
| New chapter on Brexit. Clash of declarations between the United Kingdom and the European Union regarding Northern Ireland. Meanwhile, the Eurostoxx 50 is currently down 0.01% and is trading at 4,038. On the other hand, the UK GDP came in at 6.9% y/y, against the estimate of 6.7%. European index futures remain in negative territory. Traders are waiting for the US inflation data to start with equities allocation. |
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| Support 1: 4,038 Support 2: 4,034 Support 3: 4,028 Resistance 1: 4,046 Resistance 2: 4,052 Resistance 3: 4,056 Pivot Point: 4,043 |
| The index is below the 200-day moving average. It is currently at resistance 1. Possible sideways movement before the macroeconomic data. Trading range between 4,028 and 4,056. Pivot point at 4,043. RSI neutral. |
| WTI -0.10% |
| Traders are aware of the API inventories report. Last week, U.S. crude oil inventories started to increase, due to the return of installed capacity in the Gulf of Mexico. As a result, analysts expect inventories to continue to rise in the US. At the moment, WTI is down 0.10% and is trading at USD$80.47 per barrel. As for global supply, it could increase, mainly due to OPEC, US and Saudi Arabian production. |
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| Support 1: 80.55 Support 2: 80.44 Support 3: 80.38 Resistance 1: 80.72 Resistance 2: 80.78 Resistance 3: 80.89 Pivot Point: 80.61 |
| The price is above the 200-day moving average. The price is however at the pivot point where a trend change could occur. Expected trading range between USD$80.38 and USD$80.89. Pivot point at USD$80.61. RSI neutral. |
| BITCOIN -3.60% |
| Bitcoin and the major cryptocurrencies are correcting at the moment. The Bears started selling as Bitcoin approached the USD$60,000 zone. Bulls are now looking to hold support at USD$53,000 which will allow them to hold the zone and bounce back towards USD$60,000. On the other hand, Russia’s Deputy Finance Minister Alexey Moiseev announced that he does not intend to restrict cryptocurrency trading. Meanwhile, traders are keeping an eye on the possible approval of the Bitcoin ETF. |
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| Support 1: 54,715.3 Support 2: 54,348.7 Support 3: 53,615.5 Resistance 1: 55,815.0 Resistance 2: 56,548.2 Resistance 3: 56,914.8 Pivot Point: 55,448.4 |
| The price is still above the 200-day moving average, but it is getting closer to break this level. If it crosses this point, the next support to look for is at USD$54,518. Pivot point for trend change at USD$55,448. RSI neutral. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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