SUMMARY

  • The Eurozone composite PMI index came in at 49.2 points, above market expectations but below the 50 mark indicating economic expansion.
  • According to the API, US crude oil inventories increased by 423,000 barrels. Today we will hear the EIA inventories report, which is expected to increase by 2.6 million barrels.
  • Second consecutive negative close for the S&P500. Yesterday it closed down -0.83% as investors took profits after the index reached record highs.

GOLD

Specifications

  • Leverage: 50
  • Units: 100
  • Margin requirement: USD$4161
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2124,48
  • Support 2: 2123,41
  • Resistance 1: 2127,32
  • Resistance 2: 2129,09

Fundamental Analysis

  • The Eurozone composite PMI index came in at 49.2 points, above market expectations but below the economic expansion value of 50 points. The services PMI came in at 50.2, indicating economic expansion in the sector.
  • In the United Kingdom, the composite PMI came in at 53, in the expansion zone. The services PMI came in at 53.8.
  • In the United States, the composite PMI came in at 52.5 and the services PMI came in at 52.3, both in the expansion zone. The non-manufacturing PMI came in at 52.6, confirming the sector’s expansion.
  • Traders are eagerly awaiting the ADP report, which expects the creation of 149,000 new non-farm private sector jobs.
  • The Bank of Canada will make its decision on interest rates, although it is very likely to keep them at 5%.
  • Jerome Powell’s statement will be released today.

WTI

Specifications

  • Leverage: 50
  • Units: 1.000
  • Margin requirement: USD$1,519
  • Example: USD$1 change in WTI price = USD1000 potential PL.
  • Support 1: 78,08
  • Support 2: 77,91
  • Resistance 1: 78,36
  • Resistance 2: 78,47

Fundamental Analysis

  • According to the API, U.S. crude inventories increased by 423,000 barrels. Today we will hear the EIA report on inventories, which are expected to increase by 2.6 million barrels. The price of WTI crude oil is currently up +0.09% at USD 78.23 per barrel.
  • Investors have funded a USD 1.3 billion investment fund for the development of energy projects in southern Africa.
  • Donald Trump has every chance of winning the US primaries, which would make him the Republican Party’s presidential candidate. Analysts believe he is very likely to win the presidential election. The energy and oil and gas sector is one of Trump’s biggest contributors and allies.
  • WTI is trying to break above its 40-day moving average of $78.34. If it succeeds, the target is resistance at $78.97 per barrel.

S&P500

Specifications

  • Leverage: 50
  • Units: 1
  • Margin requirement: USD$102
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 5079,10
  • Support 2: 5077,10
  • Resistance 1: 5082,90
  • Resistance 2: 5084,70

Fundamental Analysis

  • The S&P500 closed lower for the second consecutive day. It closed down -0.83% yesterday, as investors took profits after the index had reached record highs.
  • The price of bitcoin reached an all-time high of USD 69,000. After reaching this level, the market experienced heavy selling, which also impacted the stock indices.
  • The gold price chains its sixth consecutive day of positive closing, indicating that traders continue to take long positions in the metal to mitigate inflationary risk, diversify portfolios and anticipate NFP in the United States. Moreover, the metal is at record levels.
  • Trump is very likely to be the Republican Party’s candidate in the US presidential election.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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