Daily Market Review & Financial Analysis

Oil Soars on Optimism over OPEC Cuts

November 22, 2019

U.S. Stock Market

Pivot : 3,118 Last : 3,104

Review:

Wall Street indices finished in the red yesterday as U.S.-China trade negotiations continued to cast a long shadow. The Dow Jones fell by 0.20%, the S&P 500 dropped 0.16% and the NASDAQ lost 0.24% of its value.

Technical comment:

The S&P RSI is bearish and calls for further downside.

Preference scenario:

Short positions below 3,118 with targets at 3,091 and 3,078 in extension.

Alternative scenario:

Above 3,118, look for further upside with 3,127.50 and 3,139 as targets.

Resistance 3,118 3,128 3,139
Support 3,091 3,078 3,066

Japanese Yen (JPY)

Pivot : 108.50 Last : 108.46

Review:

The yen fell against the U.S. dollar after Japan’s All Industries Activity index came in at 1.5%.

Technical comment:

The RSI is bullish and calls for further upside.

Preference scenario:

Long positions above 108.50 with targets at 108.75 and 108.85 in extension.

Alternative scenario:

Below 108.50, look for further downside with 108.40 and 108.25 as targets.

Resistance 108.75 108.85 108.95
Support 108.50 108.40 108.25

Gold

Pivot : 1,496 Last : 1,464

Review:

Gold fell as U.S.-China trade deal talks continued.

Technical comment:

The immediate trend remains downward and the momentum is strong.

Preference scenario:

Short positions below 1,469.50 with targets at 1,460.50 and 1,457.25 in extension.

Alternative scenario:

Above 1,469.50, look for further upside with 1,473.75 and 1,477 as targets.

Resistance 1,470 1,474 1,477
Support 1,461 1,457 1,454

Crude Oil

Pivot : 57.85 Last : 58.47

Review:

Oil prices jumped by 2.22% with OPEC widely expected to extend production cuts until June.

Technical comment:

The RSI advocates for further advance.

Preference scenario:

Long positions above 57.85 with targets at 58.75 and 59.20 in extension.

Alternative scenario:

Below 57.85, look for further downside with 57.36 and 56.72 as targets.

Resistance 58.75 59.20 59.65
Support 57.85 57.36 56.72

Euro (EUR)

Pivot : 1.1075 Last : 1.1063

Review:

The EUR/USD fell by 0.07% ahead of the German and French Flash Services PMI reports.

Technical comment:

Above 1.1075, look for further upside with 1.1085 and 1.1095 as targets.

Preference scenario:

Short positions below 1.1075 with targets at 1.1050 and 1.1040 in extension.

Alternative scenario:

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

Resistance 1.1075 1.1085 1.1095
Support 1.1050 1.1040 1.1030

British Pound (GBP)

Pivot : 1.2890 Last : 1.2902

Review:

The GBP/USD fell by 0.04% ahead of the Flash Manufacturing PMI which is expected to be published today.

Technical comment:

The RSI is mixed with a bullish bias.

Preference scenario:

Long positions above 1.2890 with targets at 1.2915 and 1.2930 in extension.

Alternative scenario:

Below 1.2890, look for further downside with 1.2875 and 1.2860 as targets.

Resistance 1.2915 1.2930 1.2945
Support 1.2890 1.2875 1.2860

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