Daily Review for November 04, 2021
FED kept interest rates stable at 0.25%.
OPEC meets to evaluate production increase. WTI and Brent prices correct, due to the increase in US inventories.
Moderna reports results. Traders expect the company to exceed market expectations, mainly due to the volume of Covid-19 vaccine sales.
Bank of England will make its interest rate decision. Analysts expect the BoE will leave rates unchanged at 0.10%.
Traders are awaiting statements from Christine Lagarde as ECB President on the FED decision.
|FED kept interests rates stable at 0.25%. Jerome Powell, as Chairman of the Federal Reserve, announced the start of tapering, which will start with the reduction of USD$15 billion per month in purchases of fixed income instruments. Upon hearing the announcement, traders began to buy large volumes of metals to mitigate the risk of volatility in equity instruments. At the moment the price of silver is up 1.32% and is trading at USD$23.66 per Troy ounce.|
|Support 1: 23.543|
Support 2: 23.521
Support 3: 23.484
Resistance 1: 23.602
Resistance 2: 23.639
Resistance 3: 23.661
Pivot Point: 23.580
|The price is below the 200-day moving average. At the moment, it is between resistance 1 and the pivot point. If the trend continues, the price could reach USD$24.36 per Troy ounce. Pivot point at USD$23.58. RSI neutral.|
|According to the IEA, crude oil inventories in the United States increased by 3.2 million barrels. This is evidence that producers in North America and the Gulf of Mexico are at maximum installed capacity. On the other hand, traders are attentive to the OPEC meeting, which will take place today, and in which the main topic of discussion is the increase in production. The main objective is to obtain as much profit as possible on the current price level. However, supply may catch up with demand, and prices may stabilize. At the moment WTI is down 0.99% and is trading at USD$80.08 per barrel.|
|Support 1: 80.09|
Support 2: 79.96
Support 3: 79.89
Resistance 1: 80.29
Resistance 2: 80.36
Resistance 3: 80.49
Pivot Point: 80.16
|The price is at support 1, below the 200-day moving average. Expected trading range between USD$79.89 and USD$80.49. Pivot point for trend change at USD$80.16. RSI in oversold zone. If the Bears gain ground, the price could fall towards USD$75.53 per barrel.|
|NASDAQ 100 +0.21%|
|Despite the tapering announcements, the market is currently showing bullish movements, mainly in Japanese and U.S. futures. Investors are looking positively on the Fed’s announcement that it does not plan to raise interest rates in the short term. At the moment, the Nasdaq 100 is up 0.21% and is trading at 16,178 points. Moderna will present its results today. Analysts expect an EPS of 9.13 and sales of USD$6.49 billion driven by Covid-19 vaccines. The company’s current market capitalization is USD$139.63 billion.|
|Support 1: 16,167.7|
Support 2: 16,162.2
Support 3: 16,154.9
Resistance 1: 16,180.5
Resistance 2: 16,187.8
Resistance 3: 16,193.3
Pivot Point: 16,175.0
|The index continues the upward channel and the Bulls have managed to consolidate the index above 16,000 points. The price continues above the 200-day moving average. Expected trading range between 16,154 and 16,193. Pivot point at 16,175. RSI in overbought zone.|
|NATURAL GAS -1.72%|
|Natural Gas prices are currently correcting 1.72% and the commodity is trading at USD$5.75 per BTU. Traders know that oil supply is increasing. However, today they are paying attention to the IEA’s report on Natural Gas reserves in the United States. Analysts expect 63 billion cubic meters. On the other hand, demand continues to increase, mainly in Europe. The European Union continues in discussions to accelerate Nordstream 2.|
|Support 1: 5.729|
Support 2: 5.698
Support 3: 5.682
Resistance 1: 5.776
Resistance 2: 5.792
Resistance 3: 5.823
Pivot Point: 5.745
|The price is right at the 200-day moving average. The price is close to the pivot point, so a trend reversal could be generated. If the Bulls succeed, the price could recover the USD$6.25 per BTU area. Expected trading range between USD$5.68 and USD$5.82. Neutral RSI coming out of the oversold zone.|
InvestFW Market Research
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