Daily Market Review & Financial Analysis

Oil Continues its Slide

March 31, 2020

U.S. Stock Market

Pivot : 7,480 Last : 7,879

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.

Resistance 7,990 8,250 8,525
Support 7,480 7,290 7,085

Japanese Yen

Pivot : 107.10 Last : 107.99

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.

Resistance 108.45 109.05 110.05
Support 107.10 106.50 105.90

Gold

Pivot : 1,627.25 Last : 1,617.17

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.

Resistance 1,627.25 1,637.50 1,645.50
Support 1,608.75 1,594.00 1,586.00

Crude Oil

Pivot : 20.85 Last : 20.33

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.

Resistance 20.85 21.50 21.95
Support 19.25 18.65 18.25

Euro (EUR)

Pivot : 1.1060 Last : 1.1029

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.

Resistance 1.1060 1.1105 1.1145
Support 1.0950 1.0895 1.0850

British Pound (GBP)

Pivot : 1.2475 Last : 1.2388

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.

Resistance 1.2475 1.2560 1.2620
Support 1.2290 1.2205 1.2140

Disclaimer: The charts are provided by Trading Central, which is a respected third party research provider. The information provided should not be considered as trading advice. UFX provides Trading Central chart analysis to support clients in their trades, which should be independently evaluated. Past performance is not a reliable indicator of future results. UFX cannot be held liable for any information provided by Trading Central. UFX makes no representation and assumes no liability as to the accuracy or completeness of the information provided nor any loss arising from any investment based on this material, forecast or other information supplied by an employee of UFX, a third party or otherwise.