Daily review for October 14, 2021
Despite the increase in U.S. inventories, Crude oil prices maintain their upward trend. Traders will confirm the level of inventories in the US with the EIA report.
Equities rise globally, boosted by U.S. inflation data. JP Morgan beat market expectations. Today it is the turn of United Health and Walgreens Boots, both companies are part of the Dow Jones. Bank of America, Well Fargo, Morgan Stanley and Citigroup will also report results.
European stock indices open higher and traders are looking forward to the ECB announcements. On the other hand, the FED announced the possible start of tapering for mid-November.
| WTI +0.72% |
| According to API, U.S. crude oil inventories increased by 5.2 million barrels. Today, traders will validate the data with the EIA inventories report. The increase in the supply of crude oil to compensate demand levels, have caused the price to remain above the level of USD$80 per barrel. WTI is currently up 0.72% and is trading at USD$81 per barrel. Due to the price rebound, traders are focusing on O&G companies, which will start reporting results for Q3 2021. |
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| Support 1: 80.90 Support 2: 80.83 Support 3: 80.77 Resistance 1: 81.03 Resistance 2: 81.09 Resistance 3: 81.16 Pivot Point: 80.96 |
| The price continues above the 200-day moving average. At this moment, the upward momentum is looking for the zone of resistance 2. Trading range between USD$80.77 and USD$81.16. Pivot point for trend change at USD$80.96. Neutral RSI approaching the overbought zone. |
| DOW JONES +0.31% |
| Corporate earnings season begins. JP Morgan, a Dow Jones company, reported results for Q3 2021. The company’s earnings per share came in at 3.74 vs. the 3 expected by the market. The company’s sales were USD$30.44 Billion vs USD$29.86 Billion expected. Thus, the company’s market capitalization stands at USD$481.09 billion. Today United Health and Walgreens Boots will present their results. Both companies are part of the Dow Jones. At the moment the index is up 0.31% and is trading at 34,360. On the other hand, the FED announced the possible start of tapering in mid-November. |
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| Support 1: 34,485.0 Support 2: 34,478.0 Support 3: 34,471.6 Resistance 1: 34,498.4 Resistance 2: 34,504.8 Resistance 3: 34,511.8 Pivot Point: 34,491.4 |
| Price crossed the trend line and is currently above the 200-day moving average. The Bulls are looking to break above the 34,472 area to clear the way to 34,821. Pivot point for trend change at 34,491. |
| DAX 40 +0.29% |
| The Tec DAX is currently up 1.75% and is trading at 3,641 points. European stock indices are up, boosted by the inflation data in the United States. Positive inflation generally produces upward movements in equities in the short term. The DAX 40 is currently up 0.29% and is trading at 15,304 points. Today, the ECB will present several statements. Traders are waiting for signals on the progress of the monetary policy strategy in Europe. |
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| Support 1: 15,287.4 Support 2: 15,281.7 Support 3: 15,278.4 Resistance 1: 15,296.4 Resistance 2: 15,299.7 Resistance 3: 15,305.4 Pivot Point: 15,290.7 |
| The price is above the 200-day moving average. At the moment it is close to the resistance 1. If the Bulls break above this zone, the next target level is 15,403 points. Trading range between 15,278 and 15,305. RSI in overbought zone. |
| GOLD -0.16% |
| Gold rallied sharply during yesterday’s session. The price climbed from support 2 at USD$1,755 to resistance 1 at USD$1,794. Inflation and tapering are making investors nervous. Therefore, buying positions in gold as a safe haven asset have increased. Traders, however, are now paying attention to the sideways movement and correction that the metal could present, as long as equities are in positive territory. The FED announced the possible start of tapering in November 2021. |
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| Support 1: 1,790.95 Support 2: 1,789.80 Support 3: 1,789.00 Resistance 1: 1,792.90 Resistance 2: 1,793.70 Resistance 3: 1,794.85 Pivot Point: 1,791.75 |
| The price is above the 200-day moving average. Expected trading range between USD$1,789 and USD$1,794. Pivot point for trend change at USD$1,791. RSI near the overbought zone. Possible correction towards support 1 or 2. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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