Daily Market Review & Financial Analysis

OPEC Cuts Output to Counter the Coronavirus

February 14, 2020

U.S. Stock Market

Pivot : 3,355.00 Last : 3,375.02

Review:

U.S. indices finished in the red after losses in the Oil & Gas, Healthcare and Technology sectors. The Dow Jones fell by 0.43%, the S&P 500 fell by 0.16% and the NASDAQ Composite lost 0.14% of its value.

Technical comment:

The S&P RSI advocates for further advance.

Preference scenario:

Long positions above 3,355 with targets at 3,397 and 3,410 in extension.

Alternative scenario:

Below 3,355, look for further downside with 3,341 and 3,317 as targets.

Resistance 3,397.00 3,410.00 3,425.00
Support 3,355.00 3,341.00 3,317.00

Japanese Yen (JPY)

Pivot : 109.90 Last : 109.79

Review:

The yen rose against the dollar as demand for the safe haven currency increased after coronavirus deaths and infections in China rose overnight.

Technical comment:

As long as 109.90 is the resistance, a decline to 109.55 is likely.

Preference scenario:

Short positions below 109.90 with targets at 109.55 and 109.35 in extension.

Alternative scenario:

Above 109.90, look for further upside with 110.10 and 110.30 as targets.

Resistance 109.90 110.10 110.30
Support 109.55 109.35 109.20

Gold

Pivot : 1,572.50 Last : 1,575.64

Review:

Gold rose by 0.43% as fears of a pandemic increased again.

Technical comment:

The RSI is above its neutrality area at 50%.

Preference scenario:

Long positions above 1,572.50 with targets at 1,578.25 and 1,580.75 in extension.

Alternative scenario:

Below 1,572.50, look for further downside with 1,570.00 and 1,567.25 as targets.

Resistance 1,578.25 1,580.75 1,582.75
Support 1,572.50 1,570.00 1,567.25

Crude Oil

Pivot : 51.10 Last : 51.62

Review:

Oil prices rose by 0.47% as OPEC confirmed it will cut production due to low demand related to the coronavirus.

Technical comment:

The RSI advocates for further upside.

Preference scenario:

Long positions above 51.10 with targets at 51.95 and 52.25 in extension.

Alternative scenario:

Below 51.10, look for further downside with 50.60 and 50.20 as targets.

Resistance 51.95 52.25 52.55
Support 51.10 50.60 50.20

Euro (EUR)

Pivot : 1.0865 Last : 1.0842

Review:

The EUR/USD fell by 0.29% with investors believing the United States is better placed than the eurozone to weather the economic impact of the coronavirus, although the German Final CPI remained unchanged at -0.6%.

Technical comment:

The RSI has broken below the 30 level.

Preference scenario:

Short positions below 1.0865 with targets at 1.0830 and 1.0815 in extension.

Alternative scenario:

Above 1.0865, look for further upside with 1.0885 and 1.0900 as targets.

Resistance 1.0865 1.0885 1.0900
Support 1.0830 1.0815 1.0800

British Pound (GBP)

Pivot : 1.3015 Last : 1.3054

Review:

The GBP/USD rose by 0.65% after the RICS House Price Balance came in better than expected at 17% vs. 3% forecast.

Technical comment:

The RSI is bullish and calls for further upside.

Preference scenario:

Long positions above 1.3015 with targets at 1.3070 and 1.3100 in extension.

Alternative scenario:

Below 1.3015, look for further downside with 1.2990 and 1.2965 as targets.

Resistance 1.3070 1.3100 1.3120
Support 1.3015 1.2990 1.2965

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