Daily Market Review & Financial Analysis

Coronavirus Impacts Oil and Gold Prices

January 23, 2020

U.S. Stock Market

Pivot : 9,123 Last : 9,188

Review:

Wall Street had a mixed day, with gains in the Telecom, Technology and Utilities sectors and losses for many Oil & Gas, Basic Materials and Industrials stocks. The Dow Jones fell by 0.03%, the S&P 500 rose by 0.03% and the NASDAQ Composite added 0.14% to its value.

Technical comment:

The NADAQ 100 RSI calls for a new upleg.

Preference scenario:

Long positions above 9,123 with targets at 9,241.50 and 9,292 in extension.

Alternative scenario:

Below 9,123, look for further downside with 9,055 and 8,950.75 as targets.

Resistance 9,242 9,292 9,325
Support 9,123 9,055 8,951

Japanese Yen (JPY)

Pivot : 110.00 Last : 109.88

Review:

The yen fell against the dollar after the releases of bullish U.S. housing data.

Technical comment:

The RSI advocates for further decline.

Preference scenario:

Short positions below 110 with targets at 109.80 and 109.70 in extension.

Alternative scenario:

Above 110, look for further upside with 110.10 and 110.20 as targets.

Resistance 110.00 110.10 110.20
Support 109.80 109.70 109.55

Gold

Pivot : 1,554.00 Last : 1,558.16

Review:

Gold rose by 0.32% as investors considered the likelihood of the coronavirus hurting bullion demand in China.

Technical comment:

The RSI shows upside momentum.

Preference scenario:

Long positions above 1,554 with targets at 1,560.50 and 1,563.50 in extension.

Alternative scenario:

Below 1,554, look for further downside with 1,550 and 1,546 as targets.

Resistance 1,560.50 1,563.50 1,566.00
Support 1,554.00 1,550.00 1,546.00

Crude Oil

Pivot : 57.35 Last : 56.74

Review:

Oil prices fell by 3.77% to a seven-week low amid concerns that the deadly virus spreading out of China will dampen energy demand in a market already awash with supplies.

Technical comment:

The RSI is mixed to bearish.

Preference scenario:

Short positions below 57.35 with targets at 56.50 and 56 in extension.

Alternative scenario:

Above 57.35, look for further upside with 57.85 and 58.25 as targets.

Resistance 57.35 57.85 58.25
Support 56.50 56.00 55.65

Euro (EUR)

Pivot : 1.1095 Last : 1.1091

Review:

The EUR/USD rose by 0.11% ahead of the ECB’s Main Refinancing Rate decision today.

Technical comment:

The RSI is mixed and calls for caution.

Preference scenario:

Short positions below 1.1095 with targets at 1.1070 and 1.1060 in extension.

Alternative scenario:

Above 1.1095, look for further upside with 1.1110 and 1.1120 as targets.

Resistance 1.1095 1.1110 1.1120
Support 1.1070 1.1060 1.1045

British Pound (GBP)

Pivot : 1.3120 Last : 1.3144

Review:

The GBP/USD rose by 0.71% after positive economic reports in the UK.

Technical comment:

The RSI lacks downward momentum.

Preference scenario:

Long positions above 1.3120 with targets at 1.3155 and 1.3175 in extension.

Alternative scenario:

Below 1.3120, look for further downside with 1.3095 and 1.3065 as targets.

Resistance 1.3155 1.3175 1.3200
Support 1.3120 1.3095 1.3065

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