Daily Market Review & Financial Analysis

Review:

U.S. indices closed higher on Monday, driven by gains in the Healthcare, Technology and Utilities sectors. The Dow Jones rose by 3.19%, the S&P 500 climbed 3.35% and the NASDAQ Composite added 3.62% to its value.

Technical comment:

The NASDAQ 100 RSI calls for a new upleg.

Preference scenario:

Long positions above 7,480 with targets at 7,990 and 8,250 in extension.

Alternative scenario:

Below 7,480, look for further downside with 7,290 and 7,085 as targets.

Review:

The USD/JPY traded lower, closing at 107.99.

Technical comment:

Intraday technical indicators are mixed.

Preference scenario:

Long positions above 107.10 with targets at 108.45 and 109.05 in extension.

Alternative scenario:

Below 107.10, look for further downside with 106.50 and 105.90 as targets.

Review:

Gold prices were slightly lower on Monday as equities opened the week on a positive note, shrugging off President Donald Trump’s decision to keep existing advice again non-essential business and movement in place until the end of April.

Technical comment:

The RSI is below its neutrality area at 50%.

Preference scenario:

Short positions below 1,627.25 with targets at 1,608.75 and 1,594 in extension.

Alternative scenario:

Above 1,627.25, look for further upside with 1,637.50 and 1,645.50 as targets.

Review:

With some 3 billion of the world’s population not driving, commuting or flying because of COVID-19, oil has nowhere to go but down, accelerating its slide beneath $20 per barrel on Monday.

Technical comment:

As long as 20.85 is the resistance, expect a return to 19.25.

Preference scenario:

Short positions below 20.85 with targets at 19.25 and 18.65 in extension.

Alternative scenario:

Above 20.85, look for further upside with 21.50 and 21.95 as targets.

Review:

The EUR/USD fell on Monday, closing at 1.1029.

Technical comment:

As long as 1.1060 is the resistance, expect a return to 1.0950.

Preference scenario:

Short positions below 1.1060 with targets at 1.0950 and 1.0895 in extension.

Alternative scenario:

Above 1.1060, look for further upside with 1.1105 and 1.1145 as targets.

Review:

The pound traded higher on Monday, closing at 1.2388.

Technical comment:

The RSI is below its neutrality area at 50%.

Preference scenario:

Short positions below 1.2475 with targets at 1.2290 and 1.2205 in extension.

Alternative scenario:

Above 1.2475, look for further upside with 1.2560 and 1.2620 as targets.