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Daily Review for February 18, 2021

Equities remain in red and commodities are starting the super cycle

In the US, the market is still waiting for the economic stimulus package, which may  be approved in March 2021

Investors are losing interest in technology companies and are now starting to buy  industrial and O&G companies. Opportunity for DAX and DJIA

Crude oil managed to stay above the resistance of USD$60 per barrel, but Saudi  Arabia’s announcement cause concern

Bitcoin hits record highs at 52,000. JP Morgan warns about the recent source of  cryptocurrency buying volume. Gold falls to 1,780 and looks to regain ground  today

S&P500 -0.28%
Yesterday, the global market witnessed a significant correction, caused by the increase in US  treasury bond yields. Gold and silver prices fell sharply as a result of investors’ interest in fixed  income. On the other hand, traders remain optimistic about the U.S. economic stimulus package.  The S&P500 index is currently down 0.28% and is trading at 3,914. Fear and Greed indicator is at  66 out of 100. Economic stimulus is good for equities and even more in times of economic  recovery.
Support 1: 3,917.04 
Support 2: 3,915.20 
Support 3: 3,911.78 
Resistance 1: 3,922.30 
Resistance 2: 3,925.72 
Resistance 3: 3,927.56 
Pivot Point: 3,920.46
Price reached all-time highs and came back to the actual level. The price is currently at the 25 and  15 day moving average and is above support 1. If the market rebounds and recovers yesterday’s  fall, the index could reach 4,000 points. Pivot point at 3,920.
DAX 30 -0.10%
During the Asian session, index futures continued to decline. Industrial indexes, such as the Dow  Jones and the DAX, managed to recover part of the decline. However, Nasdaq index closed  negative. With the number of contagion cases worldwide decreasing, investors have started to sell  positions in technology companies and have started to buy companies in the industrial and energy  sector. As a result, there may be a significant opportunity for the DAX and the Dow Jones.  Yesterday Warren Buffet announced that Berkshire Hathaway sold part of its Apple shares. At the  end of the day, the Fed minutes warned about the significant level of inflation. Today we will have  the minutes of the ECB’s monetary policy meeting.
Support 1: 13,879.6 
Support 2: 13,863.3 
Support 3: 13,847.1 
Resistance 1: 13,912.1 
Resistance 2: 13,928.3 
Resistance 3: 13,944.6 
Pivot Point: 13,895.8
Expected trading range between 13,847 and 13,944. Bulls are still trying to consolidate the index  above 14,000 points. For now the RSI is coming out of the oversold level. If the index breaks  above the current support, it may head towards 14,037 points.
CRUDE OIL +0.92%
Finally, oil prices managed to consolidate above USD$60 per barrel. It is currently up 0.92% and  is trading at USD$61.74. Price rise is explained by three factors. The first one is the production  cut of the UAE of 1 million barrels per day; the second is the recovery of demand from China; and  finally, the strong winter in the USA and Northern Europe. The challenge at this moment for crude  oil is to keep the actual price, considering that Saudi Arabia announced yesterday that it will  increase its production level to take advantage of the actual spot and futures prices.
Support 1: 60.27 
Support 2: 58.81 
Support 3: 56.62 
Resistance 1: 62.46 
Resistance 2: 63.2 
Resistance 3: 65.39 
Pivot Point: 61.01
Bears plan to sell at this level with the target in 59. Bulls keep actual long positions, but would  buy back at 59. Trading range between 56.62 and 65.39, with pivot point at 61.01.
BITCOIN +1.66%
Bitcoin is currently continuing yesterday’s uptrend and is trading at 51,578. During the Asian  session, the Bitcoin reached new all-time highs at 52,000. The market buzz is whether Bitcoin has  replaced gold as a hedge against high volatility. However, according to data from JP Morgan, in  the recent volume of cryptocurrency purchases, investment funds have not participated, so it could  be an important pull of retail investors.
Support 1: 50,154.33 
Support 2: 48,040.47 
Support 3: 44,684.37 
Resistance 1: 53,510.43 
Resistance 2: 54,752.67 
Resistance 3: 58,108.77 
Pivot Point: 51,396.57
If the Bulls manage to resist the buying volume, price could head towards resistance 1, which is at  the 61.8% Fibonacci extension. On the other hand, if profit-taking starts, price could have a  downward pullback towards support 1. Pivot point at 51.396.
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