Daily Review for June 25, 2021
Biden’s infrastructure plan, in addition to the reactivation of trade agreements between the United States and the European Union, and the results of the US bank stress test, generate optimism in the market and mark a rally in S&P500, the Nasdaq 100 and the Dow Jones.
The European leaders’ summit continues. Mixed opinions have been presented on a proposed direct meeting with Putin. The Gazprom pipeline that passes through Germany remains on the governments radar.
Allocation continues in traders’ portfolios. Rotation from value to growth stocks continues. The Nasdaq 100 enters the rally.
The crypto market continues to recover some of the losses generated in recent weeks. There is a rotation of Bitcoin mining, from China, to other countries, including the United States.
Gold could show bearish pressure in the short term. In the long term, the Bulls have the upper hand.
|Main banks in the United States passed the stress test, generating optimism in the market, mainly in the shares that make up the Nasdaq 100 (+0.05) and the S&P500 (+0.03). According to the FED’s analysis, banks in the United States have a very good level of liquidity and could therefore withstand an economic recession in the scenario in which it occurs. Another point in favor of the rally is the approval of Biden’s infrastructure plan.|
|Support 1: 4,256.20|
Support 2: 4,254.29
Support 3: 4,251.20
Resistance 1: 4,261.20
Resistance 2: 4,264.29
Resistance 3: 4,266.20
Pivot Point: 4,259.29
|The price is making new all-time highs at 4,261. It also remains above the Ichimoku cloud, which is a bullish sign and could confirm the rally. Trading range between 4,251 and 4,266. Pivot point at 4,259. RSI neutral.|
|NASDAQ 100 +0.04%|
|Allocation from value to growth stocks continues in traders’ portfolios. The Nasdaq 100 has come out of this scenario favorably, and is now up 0.04%, marking the bullish rally, generated by the favorable results of the US bank stress test. On the other hand, the crypto market is recovering the losses of the last few weeks, which could also favor the index due to the high correlation of its companies with cryptocurrencies.|
|Support 1: 14,353.25|
Support 2: 14,346.25
Support 3: 14,339.25
Resistance 1: 14,367.25
Resistance 2: 14,374.25
Resistance 3: 14,381.25
Pivot Point: 14,360.25
|The price is at the 14,360 pivot point so there could be either a trend reversal or sideways movement. If the Bulls’ momentum continues, the rally would generate a new bounce from that point. Trading range between 14,339 and 14,381. RSI neutral.|
|The currency remains above the 1.1900 level. Currency traders continue to evaluate Treasury yields and the possible favorable impact of Biden’s infrastructure plan. The market also sees positive signs in the reactivation of the U.S. trade agreements with the European Union. At the moment the currency is up 0.06% and is trading at 1.1941. Traders are aware of the developments of the European summit.|
|Support 1: 1.1938|
Support 2: 1.1930
Support 3: 1.1924
Resistance 1: 1.1952
Resistance 2: 1.1958
Resistance 3: 1.1966
Pivot Point: 1.1944
|The price is below the 200-day moving average. The Bears are looking for the 1.1890 area. Bulls are looking for 1.1985. Trading range between 1.1924 and 1.1966. Pivot point at 1.1944. RSI neutral.|
|Gold is currently moving sideways between the range of USD$1,788 and $1,773 and could see pressure from the bears as a result of the US equities rally. The fall of the USD is the variable that is favoring gold at the moment, as traders have started to buy gold a couple of weeks ago, to mitigate inflation. In the coming months, the metal could tend to move upwards, caused by the capital spending of Biden’s infrastructure plan, which could cause inflationary pressure in the market.|
|Support 1: 1,777.56|
Support 2: 1,775.38
Support 3: 1,773.71
Resistance 1: 1,781.41
Resistance 2: 1,783.08
Resistance 3: 1,785.26
Pivot Point: 1,779.23
|The price is below the 200-day moving average. Sideways movement. Trading range between 1,773 and 1,785. Pivot point at 1,785. RSI neutral.|
Capitalix Market Research
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