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Daily Review for March 24, 2021

The market fell during the Asian session in the wake of Powell and Yellen’s presentation. 

In Europe the stock market opens in the red and traders are aware of the PMI data expecting a possible rebound. 

Yesterday Crude oil fell nearly 7%, due to the wave of contagions in Europe and the damming of oil tankers in the Suez Canal. 

Dow Jones and US indices are looking to rebound. Big concern about the possible increase in corporate taxes. 

Gold is looking to defend the 1,730 level. If it breaks the 1,700 support, the market could see a further decline in the metal.

CRUDE OIL +0.93%
The price of crude entered a consolidation phase after a significant correction of almost 7%. It is currently rising 0.93% and is trading at USD$58.18 per barrel. Main factor behind the fall in price, is the third wave of the coronavirus in Europe. In yesterday’s inventory report, the API presented an increase of 2.9 million barrels against the market forecast of a reduction of 900,000 barrels. This also impacted the price, as there is more supply in the market.
Support 1: 57.92
Support 2: 57.52
Support 3: 57.24
Resistance 1: 58.60
Resistance 2: 58.88
Resistance 3: 59.28
Pivot Point: 58.20
The price is below the 14 and 28 day moving average. Crude oil is coming out of support 1. Possible sideways movement until the US inventory announcement. Pivot point at 58.20.

DOW JONES -0.01%
The index showed bearish movements during the Asian session as a result of Janeth Yellen and Jerome Powell’s comments yesterday. The index is currently trading at 32,302. The Fear and Greed ratio is at 49 over 100 (neutral level). Powell commented that the Fed will continue its strategy of expansionary monetary policy. Yellen worried the market by commenting that the government must raise taxes in order to secure funding for the full USD$3 trillion stimulus package. Biden’s proposal is to raise corporate taxes from the current level of 21% to 28%.
Support 1: 32,262.6
Support 2: 32,233.3
Support 3: 32,215.6
Resistance 1: 32,309.6
Resistance 2: 32,327.3
Resistance 3: 32,356.6
Pivot Point: 32,280.3
Despite the volatility, the index remains in an uptrend. However, the Bears are looking for the support of 31,000. Trading range between 32,215 and 32,356. Pivot point at 32,280.

GOLD +0.16%
The price of gold, like other commodities, showed a significant drop in value on Tuesday as a result of the impact of Covid-19 in Europe. At the moment the price of the metal is at 1,728. Analysts expect a possible rebound towards the resistance zone 2 and 3. In the meantime, bond yields are falling, so the rebound is fundamentally supported.
Support 1: 1,728.11
Support 2: 1,726.68
Support 3: 1,725.26
Resistance 1: 1,730.96
Resistance 2: 1,732.38
Resistance 3: 1,733.81
Pivot Point: 1,729.53
During the Asian session, the price marked a slight recovery and a sideways trend. The Bears are looking now for support 1 at 1,728 and then 1,700. Bulls try to recover the metal towards 1,750. Pivot point at 1,729.53.

DAX 30 -0.25%
New wave of contagion affects the market opening in Europe. The market opens in red and traders expect the ECB to calm the market. Today we will have PMI data in the Euro zone and in the UK. Also PMI in the US, Durable Goods report and Powell’s testimony, following yesterday’s presentation. In the DAX 30, VW is falling the most with 2.44% and EON is rising the most with 1.88%.
Support 1: 14,605
Support 2: 14,599.5
Support 3: 14,595
Resistance 1: 14,615
Resistance 2: 14,619,5
Resistance 3: 14,625
Pivot Point: 14,609,5
Expected Trading range between 14.595 and 14.625. Bearish pressure. Ichomoku cloud forecast the price towards 14.616. RSI is entering the oversold zone. Possible rebound if PMI data surprises the market. Pivot point at 14.609.

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Capitalix Market Research

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