Daily Review for January 21, 2021
During yesterday’s session, the global market went into a rally due to the Biden effect. In Asia the indexes and equities continued to rise and the same effect is estimated for the opening of Europe
In Europe, the ECB will announce its monetary policy strategy. Analysts believe that the interest rate will remain unchanged
Crude oil is beginning a correction due to the increase in inventories in USA
S&P500 up, but entering overbought levels
| NIKKEI 225 +0.16% |
| Market continues to rise and the Japanese index continues the rally. It is currently trading at 28,730 and is up 0.16% from yesterday’s close. The market is rising as investors are optimistic about the new political administration in the USA. They also know that a democratic government means greater economic stimulus packages, so that liquidity will be into the stock market in the short term. On the other hand, the Bank of Japan kept its interest rate unchanged. |
 |
| Support 1: 28,694 Support 2: 28,678 Support 3: 28,666 Resistance 1: 28,722 Resistance 2: 28,734 Resistance 3: 28,750 Pivot Point: 28,706 |
| Technical ratios indicate that the index is in uptrend. The price has moved above the 25 and 50 day moving averages. The RSI is entering the overbought level at 70. Bulls next target is the resistance at 30,000. Pivot point at 28,706. |
| FTSE 100 +0,41% |
| The British index is currently rising 0.41% and is trading at 6,712.25. Market momentum continues in Europe, where indices such as the FTSE, DAX and CAC among others, are into the rally caused by Biden. On the other hand, vaccination programmes are progressing in the UK, where the government has determined to start vaccinating as many people as possible in the shortest possible time. |
 |
| Support 1: 6,726.65 Support 2: 6,719.44 Support 3: 6,714.59 Resistance 1: 6,738.71 Resistance 2: 6,743.56 Resistance 3: 6,750.77 Pivot Point: 6,731.50 |
| Price is slightly above the 15 and 25 day moving average. It is also above the 61.8% Fibonacci retracement level. The RSI continues to rise, but has not yet reached the overbought level. Bulls are holding the target at 7,000. Pivot point at 6,731. |
| DAX 30 +0.26% |
| The German index is rising by 0.26% and is trading at 13,997, trying to break the 14,000 point resistance. The European market is concentrated today at the meeting of the European Central Bank. Traders believe that the ECB will not change the interest rate and will maintain the fixed income purchase plan. In the meantime, the member states are trying to control infections, and are maintaining the plan to achieve full vaccination of the population by the end of 2021. |
 |
| Support 1: 13,944 Support 2: 13,933 Support 3: 13,919 Resistance 1: 13,969 Resistance 2: 13,983 Resistance 3: 13,994 Pivot Point: 13,958 |
| Expected trading range between 13,919 and 13,994, with a pivot point for change in trend at 13,958. The price is above the Ichimoku cloud, and the Bulls maintain the target above 14,000 points. |
| CRUDE OIL -0.36% |
| WTI crude oil prices corrected yesterday after the API report showed that inventories increased by 2.6 million barrels in the US. WTI crude oil is currently trading at USD$ 52.99 per barrel. The price is down 0.36% from yesterday’s close. The report raised concerns among traders, due to the sign of weakening demand, which is being seen in the wake of rising supply. Much of the new inventories are due to shale oil producers, who have been trying to obtain additional premiums after the price rally in recent weeks. |
 |
| Support 1: 53.05 Support 2: 52.99 Support 3: 52.93 Resistance 1: 53.17 Resistance 2: 53.23 Resistance 3: 53.29 Pivot Point: 53.11 |
| Expected trading range between 53.93 and 53.29, with pivot point for change in trend at 53.11. The price is above the pivot point and is approaching the 52.80 support. The Ichimoku cloud projects the price towards 53.40. However, the increase in supply may push the price down to 52.56. |
| S&P500 +1.39% |
| The S&P500 is currently up 1.39% from yesterday’s close and is trading at 3,853.16. The Fear & Greed index is at 69 out of 100. Three main factors are driving the index rally. The first is the Biden effect. The second is the weakening of the USD and the third is the very good financial results that companies in the US have reported despite the pandemic. The Buffet indicator, which measures stock market capitalisation in relation to US GDP, is at 192%. |
 |
| Support 1: 3,851.86 Support 2: 3,848.43 Support 3: 3,846.36 Resistance 1: 3,857.36 Resistance 2: 3,859.43 Resistance 3: 3,862.86 Pivot Point: 3,853.93 |
| The price is above all moving averages. Also the Bulls have managed to break the resistance of 3,800. The next target is 4,000. Pivot point at 3,853.93. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
Risk Disclaimer
Any information/articles/materials/content provided by Capitalix or displayed on its website is intended to be used for educational purposes only and does not constitute investment advice or a consultation on how the client should trade.
Although Capitalix has ensured that the content of such information is accurate, it is not responsible for any omission/error/miscalculation and cannot guarantee the accuracy of any material or any information contained herein.
Therefore, any reliance you place on such material is strictly at your own risk. Please note that the responsibility for using or relying on such material rests with the client and Capitalix accepts no liability for any loss or damage, including without limitation, any loss of profit which may arise directly or indirectly from the use of or reliance on such information.
Risk Warning: Forex/CFDs trading involves significant risk to your invested capital. Please read and make sure that you fully understand our Risk Disclosure Policy.
You should ensure that, depending on your country of residence, you are allowed to trade Capitalix.com products. Please ensure that you are familiar with the company’s risk disclosure.