Daily Market Review & Financial Analysis

Oil Tanks after Inventories Report

January 24, 2020

U.S. Stock Market

Pivot : 3,304 Last : 3,326

Review:

U.S. indices finished mixed as gains in the Utilities, Industrials and Technology sectors were balanced by losses for Healthcare, Telecom and Oil & Gas stocks. The Dow Jones fell by 0.09%, the S&P 500 rose by 0.11% and the NASDAQ Composite added 0.20% to its value.

Technical comment:

The S&P RSI shows upside momentum.

Preference scenario:

Long positions above 3,304 with targets at 3,337.75 and 3,350 in extension.

Alternative scenario:

Below 3,304, look for further downside with 3,297 and 3,280 as targets.

Resistance 3,338 3,350 3,371
Support 3,304 3,297 3,280

Japanese Yen (JPY)

Pivot : 112.00 Last : 109.93

Review:

The yen fell against the dollar as investors worried about the potential of the new coronavirus to spread in Japan.

Technical comment:

The pair stands below a strong horizontal resistance at 112 and is capped by a declining trend line.

Preference scenario:

Short positions below 112 with targets at 104.55 and 99 in extension.

Alternative scenario:

Above 112, look for further upside with 114.50 and 118.50 as targets.

Resistance 112.00 114.50 118.50
Support 104.55 99.00 95.00

Gold

Pivot : 1,558.0 Last : 1,560.9

Review:

Gold fell by just 0.03% following a decision by the ECB to keep interest rates unchanged.

Technical comment:

Even though a continuation of the current consolidation cannot be ruled out, its extent should be limited.

Preference scenario:

Long positions above 1,558, with targets at 1,564 and 1568 in extension.

Alternative scenario:

Below 1,558, look for further downside with 1,554.50 and 1,551.50 as targets.

Resistance 1,564.0 1,568.0 1,571.5
Support 1,558.0 1,554.5 1,551.5

Crude Oil

Pivot : 56.0 Last : 55.7

Review:

Oil prices fell by 1.90% after the Crude Oil Inventories came at -0.4M.

Technical comment:

If 56 remains the resistance, expect a return to 55.15.

Preference scenario:

Short positions below 56 with targets at 55.15 and 54.75 in extension.

Alternative scenario:

Above 56, look for further upside with 56.55 and 57.05 as targets.

Resistance 56.0 56.6 57.1
Support 55.2 54.8 54.2

Euro (EUR)

Pivot : 1.1070 Last : 1.1055

Review:

The EUR/USD fell by 0.34% after the ECB held interest rates steady and launched a broad review of its monetary policy.

Technical comment:

As long as the resistance at 1.1070 is not surpassed, the risk of a break below 1.1035 remains high.

Preference scenario:

Short positions below 1.1070 with targets at 1.1035 and 1.1015 in extension.

Alternative scenario:

Above 1.1070, look for further upside with 1.1085 and 1.1100 as targets.

Resistance 1.1070 1.1085 1.1100
Support 1.1035 1.1015 1.1000

British Pound (GBP)

Pivot : 1.3135 Last : 1.3119

Review:

The GBP/USD fell by 0.18%, indicating that the market might have got a bit ahead of itself on Wednesday.

Technical comment:

Upward potential is likely to be limited by the resistance at 1.3135.

Preference scenario:

Short positions below 1.3135 with targets at 1.3095 and 1.3065 in extension.

Alternative scenario:

Above 1.3135, look for further upside with 1.3155 and 1.3175 as targets.

Resistance 1.3135 1.3155 1.3175
Support 1.3095 1.3065 1.3045

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