Daily review for November 15, 2021
WTI and Brent prices correct. Production level increases from the United States, Saudi Arabia and OPEC+ members. Biden announced the possible use of strategic reserves to meet market demand.
Wall Street stock indices react to the Japanese GDP data.
DAX 40 and the European market is sideways, mainly due to inflation and the increase of Covid-19 cases in Germany.
Metals correct. However, traders continue to be on the lookout for further buying. The G10 will meet later in the week to discuss inflation.
|Crude oil prices start the week with bearish movements, generated by the increase in supply. Supply is beginning to exceed current demand levels. At this moment the price of WTI is falling 0.98% and is trading at USD$78.97 per barrel. The impact on prices began to occur when US President Biden announced the possible release of strategic reserves to meet current market demand. At the moment, the production of the United States, Saudi Arabia and OPEC+ is increasing.|
|Support 1: 79.08|
Support 2: 78.95
Support 3: 78.81
Resistance 1: 79.35
Resistance 2: 79.49
Resistance 3: 79.62
Pivot Point: 79.22
|The price is below the 200-day moving average. Expected trading range between USD$78.81 and USD$79.62. Pivot point at USD$79.62. RSI neutral, so the correction could continue a few more points before finding the support point.|
|DOW JONES -0.07%|
|Stock indices start the week with mixed movements, generated by the Japanese GDP results. For Q3 2021, Japanese GDP was -0.8%. Year over year at -3%. Despite the result, the Nikkei 225 and the Topix are in positive territory with upward movements of +0.47% and +0.15% respectively. On Wall Street, futures are starting to show evidence of slowing Asian demand, and are correcting at this point. The Dow Jones is down 0.07% and is trading at 36,073. On the other hand, the market is paying attention to the increase of Covid-19 cases in Asia and Europe.|
|Support 1: 36,059.8|
Support 2: 36,044.2
Support 3: 36,025.9
Resistance 1: 36,093.7
Resistance 2: 36,112.0
Resistance 3: 36,127.6
Pivot Point: 36,078.1
|The index is approaching the pivot point, where a change of trend could occur. If the downward movements continue, the market will evaluate the support point at 35,821, to change trend or confirm it. RSI neutral. Pivot point for trend change at 36,078.|
|DAX 40 +0.01%|
|The European market is currently sideways. The main macro factor that is generating doubts in the market is inflation. Traders are looking forward to the statements of Christine Lagarde as President of the ECB. So far, the ECB has not presented its strategy for tapering in Europe. Meanwhile, the DAX 40 is trading sideways, up 0.01% and trading at 16,080. Analysts estimate inflation in the Euro Zone at 4.2% by the end of the year. The inflation target is 2%.|
|Support 1: 16,078.5|
Support 2: 16,074.0
Support 3: 16,068.5
Resistance 1: 16,088.5
Resistance 2: 16,094.0
Resistance 3: 16,098.5
Pivot Point: 16,084.0
|The index is above the 200-day moving average. The price is sideways looking for the pivot point in order to generate a trend. Pivot point at 16,084. Expected trading range between 16,068 and 16,098. RSI neutral.|
|The commodities market is correcting at the moment. Metals are in negative territory. However, the bullish outlook remains as inflation continues to worry the market and the yield curve is flat. Silver is currently down 0.51% and is trading at USD$25,245 per Troy ounce. On the other hand, during the course of the week we will have the G10 meeting, where the main point of discussion is the inflationary level, therefore, metals will play an important role in the portfolios, as they are considered the traditional instruments to mitigate the inflationary effect.|
|Support 1: 25.102|
Support 2: 25.057
Support 3: 25.032
Resistance 1: 25.172
Resistance 2: 25.197
Resistance 3: 25.242
Pivot Point: 25.127
|The price is above the 200-day moving average. Silver is trying to bounce from the pivot point to resistance 1. If the above is confirmed, a trend reversal could be generated. RSI neutral.|
Capitalix Market Research
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