Daily review for November 17, 2021
Global stock markets are in negative territory, driven by the rebound of Covid-19 cases in Europe.
If the pandemic regains strength, there could be a change of trend and a rebound in the Nasdaq 100. The market is attentive to the contracts that the U.S. government may generate to technology companies based on Biden’s infrastructure plan.
Cryptos continue with bearish movements. Traders are evaluating the current supports. Analysts assess a possible rebound or the end of the rally.
WTI continues to correct. Analysts expect a further decline in the price, due to the possible increase in crude oil inventories in the United States.
| DAX 40 -0.10% |
| European stock indices are in negative territory due to the rebound of Covid-19 cases. The European Union is starting to assess the impact of the new cases for the December season. On the other hand, traders are looking forward to Christine Lagarde’s statement as ECB President. A tapering-oriented speech is expected. Although analysts do not foresee an interest rate hike in 2022. Meanwhile, the DAX 40 is down 0.10% and is trading at 16,231. Traders are also keeping an eye on the Eurozone inflation data. |
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| Support 1: 16,215.0 Support 2: 16,211.5 Support 3: 16,207.0 Resistance 1: 16,223.0 Resistance 2: 16,227.5 Resistance 3: 16,231.0 Pivot Point: 16,219.5 |
| The index remains above the 200-day moving average. It is currently between the Pivot Point and resistance 1. The Ichimoku cloud projects sideways movement above 16,205 points. RSI neutral. The Bulls are looking to maintain the trend towards 16,400. |
| NASDAQ 100 -0.13% |
| Corporate results continue. Today it is the turn of Nvidia and Cisco. For Nvidia, analysts expect an EPS of 1.11 and sales of USD$6.82 billion. For Cisco, the market expects an EPS of 0.8046 and sales of USD$12.98 billion. Both companies are part of the Nasdaq 100. The index is currently correcting 0.13% and is trading at 16,288. Traders are also focused on Biden’s infrastructure plan, mainly in the broadband area, which could bring large contracts for technology companies. |
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| Support 1: 16,290.0 Support 2: 16,283.7 Support 3: 16,274.6 Resistance 1: 16,305.4 Resistance 2: 16,314.5 Resistance 3: 16,320.8 Pivot Point: 16,299.1 |
| The index is at resistance 1, where the Bulls are looking to defend this level with the support at 16,218. If the market continues to move lower, the index could break the 200-day moving average line, which would present an opportunity for the bears to attack the 16,000 points. RSI neutral. |
| BITCOIN -2.31% |
| Crypto market continues to correct. Bitcoin is down 2.31% and is trading at USD$59,425. Ethereum is down 3.36% and is trading at USD$4,163. Traders are still testing actual support levels. If the Bulls are able to hold them, a rebound could occur by the end of the year. Otherwise, the rally could be over. Two factors have affected the performance of cryptos. First, the significant sell-off in Tesla shares by Elon Musk, a company that has a high correlation with Bitcoin, and China’s attack on crypto miners. |
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| Support 1: 59,373.2 Support 2: 59,122.7 Support 3: 58,918.0 Resistance 1: 59,828.4 Resistance 2: 60,033.1 Resistance 3: 60,283.5 Pivot Point: 59,577.9 |
| The price is at support 1, near the low Bollinger band level and close to the trend line. It is also below the 200-day moving average, which is a bearish signal for Bitcoin. Neutral RSI. Expected trading range between USD$58,918 and USD$60,283. Pivot point at USD$59,577. |
| WTI -0.83% |
| The commodities market is starting to turn positive as traders start to buy metals and energy commodities to mitigate the declines in equities. Today we will have the IEA crude oil inventories report, where inventories are expected to increase by 1.3 million barrels. Global production is on the rise, with main movements in the US, Saudi Arabia and OPEC+ producers. WTI is currently down 0.83% and is trading at USD$79.08 per barrel. |
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| Support 1: 79.01 Support 2: 78.73 Support 3: 78.57 Resistance 1: 79.45 Resistance 2: 79.61 Resistance 3: 79.89 Pivot Point: 79.17 |
| The price is below the 200-day moving average. Traders are testing current support. If the price continues to fall, it could reach USD$78.47 where an important floor could be generated. RSI neutral. Expected trading range between USD$78.57 and USD$79.89. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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