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Daily Review for February 25, 2021

Powell convinces and calms the market.

Indexes open mixed, but with slight movements. Investors look for the next trend set.

Dow Jones reached 32,000 points and set a new all-time high.

DAX seeks to hold above the 14,000 resistance.

Silver manages to fend off the Bears and maintains the level above 27.

Crude oil is at the January 2020 level and is looking for the 70 zone.

DOW JONES +0.17%
Market recovers and the Dow Jones reaches record highs. Jerome Powell managed to convince investors. Powell commented that the USA is far away to reach the inflation target (usually 2%), so an aggressive monetary policy is not going to be evidenced until the moment in the market. This is good for equities, which managed to recover from the sharp falls due to the uncertainty at the beginning of this week. Bullish market movements are expected today, mainly in Europe and the US. Today we will have the USA GDP report for 4Q 2020.
Support 1: 31,995
Support 2: 31,980
Support 3: 31,970
Resistance 1: 32,020
Resistance 2: 32,030
Resistance 3: 32,045
Pivot Point: 32,005
The index reached the price of 32,000 yesterday. It is currently above resistance 1. Expected trading range between 31.970 and 32.045. Pivot point at 32.005.
DAX 30 +0.14%
German index uptrend, as a result of favorable GDP data in Germany and Jerome Powell’s reassurance on equities. At this moment, the index opens in positive territory in Europe, up 0.14% and trading at 14,030. In Europe, traders are looking forward to the testimony of Philip Lane, member of the ECB Executive Board.
Support 1: 14,019.6
Support 2: 13,997.3
Support 3: 13,976.6
Resistance 1: 14,062.6
Resistance 2: 14,083.3
Resistance 3: 14,105.6
Pivot Point: 14,040.3
Bulls have managed to keep the index above resistance at 14,000 points. However, this level is not far from support 2 and 3, so the Bears are looking for a selling opportunity. Pivot point at 14,030. RSI neutral.
SILVER +0.17%
Silver’s trading volume has slowed compared to investor interest since last week. At the moment the price is up 0.17% and is trading at 27.81. Silver may start to create new interest as physical demand for the metal continues to rise due to its industrial usage and due to the economic recovery. Unlike gold, silver has managed to defend its position in the market and is starting to become part of the portfolios allocation. Fixed income instruments such as US Treasury Bonds and Notes are still part of investors outlook.
Support 1: 27.76
Support 2: 27.81
Support 3: 27.88
Resistance 1: 27.99
Resistance 2: 28.04
Resistance 3: 28.11
Pivot Point: 27.92
Price is just below resistance 1. If Bulls manage to break this resistance, we could see the price rise towards 30. Bears, on the other hand, are keeping their sights on support 1 and 2, so it is time to keep an eye on this area. If the price falls to 27, the next downside level could be 26. Pivot point at 27.92.
CRUDE OIL +0.76%
WTI continues to climb. It is currently rising 0.76% and is trading at USD$63.68 per barrel. Crude oil and commodities in general, started the uptrend since November 2020, where the vaccine announcements created a green light on global trade. Analysts think the commodities super cycle is starting. We could see oil demand increase as vaccines are delivered to the world’s population. In this way, the price of crude oil could have a significant climb towards 70 or 80 per barrel by the end of the year.
Support 1: 63.46
Support 2: 63.18
Support 3: 63.03
Resistance 1: 63.89
Resistance 2: 64.04
Resistance 3: 64.32
Pivot Point: 63.61
Price is at the same level as January 2020. Bears are looking to short until support 3. Bulls are looking for the 65 per barrel area. Price is above the Ichimoku cloud. RSI neutral. Pivot point at 63.61.
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