Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

Global stocks and crude oil prices ended lower last week as the investors remain concerned about the fast-spreading Omicron coronavirus variant. This week the economic calendar light before the Christmas holidays, we doubt this week will see significant moves for the global markets after Thursday European session. The main event in the calendar is the latest GDP data from the UK and US on Wednesday.

On the earnings front, the companies due to release their results will be the Apparel and footwear giant Nike (NYSE: NKE) and the computer memory-maker Micron Technology (NASDAQ: MU) will be among those reporting earnings this week.

GOLD

Gold price after making a low at $1750, staged a smart recovery. The metal rose to a fresh monthly high last week as investors opted for the safe-haven asset ahead of Christmas and New Year holidays. While on Friday, the previous metal slightly reversed from the early gains after the King dollar regained some upside momentum.

For this week, $1815/16 remains the key resistance to watch. However, as long as the metal is trading above $1800, a pullback rally is likely to continue up to $1815 and $1830. On the downside, the first nearest support level is located at $1794. In case if it breaks below this level, it will head towards the next support level which is located at near $1786 then $1782.

DOLLAR INDEX

The US dollar, which is also often seen as the ultimate safe-haven currency, held firm against many other rivals, including the euro and commodity-linked currencies. The US dollar received strong upside momentum after the Federal Reserve took a significant hawkish turn last week.

This week, if the long-term bullish trend remains intact DXY can give a move towards above 97.00 levels in the coming weeks. On the downside, any meaningful pullback now seems to find some support near the 96.35 zones, below which the slide could further get extended towards the 96.00/95.80 region.

EURUSD

The currency pair remains under pressure as several European countries have introduced restrictions to stem the spread of the Omicron variant. On the other hand, last week the ECB said it would end its 1.85 trillion euro pandemic emergency asset-buying scheme next March.

Technically the overall trend still looks bearish and the next immediate support is at 1.1220 then 1.1180. On the upper side, in case the pair manages to settle above 1.1300, it will gain upside momentum and head towards the next resistance level at 1.1345 and 1.1370.

DOW JONES

Dow Jones futures extended losses in early morning trade Monday, worries about the economic fallout from the new Omicron virus outbreak that originated in South Africa has fueled a sharp sell-off. Meanwhile, the recent study showed that the risk of Omicron infection is five times higher than the Delta variant.

Technically the current price action signals suggest that a short term bearish trend remains intact. On the downside, the decline is more extensive, and it will be hard to rule out a run towards 34.750 and 34,450 if the bearish momentum continues. On the upper side, the first immediate resistance around 35,430 and then 36,000.

Read more-

Weekly analysis: Gold, USD, EURUSD and Dow Jones

“Where you want to be is always in control, never wishing, always trading, and always, first and foremost protecting your butt.” – Paul Tudor Jones.

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[syamfx2020]

2021 was no doubt exceptionally a very interesting and strong year for Wall Street. Despite the last couple of months downside momentum, almost every sector performed well this year.

There are so many stocks that have given multi ford gains during 2021 including Moderna and AMC. But let’s discuss the 5 stocks which no one would have thought that these stocks will generate great returns in the past 1 year.

Perficient (NASDAQ: PRFT)

Perficient, based in St. Louis, Missouri, is a digital consultancy and global IT solutions provider. The company has offices in North America, Eastern Europe, India, China, and Mexico. Perficient shares made a spectacular bullish rally from $47 on January 2021, to $153 on November 05, 2021, and up by more than 230% this year. Perficient Q3 results came better than expected, posting beats on both revenue and earnings.

Inotiv Inc (NASDAQ: NOTV)

Inotiv, which specializes in providing nonclinical and analytical drug discovery and development services. The company helps its customers strategize to meet their own discovery and development objectives. Inotiv stock was trading under $12 a share at the beginning of the year, the stock has surged over 450% in 2021 and hits a fresh all-time high of $60. Inotiv revenue for the fourth quarter was $30.1 million, up from $15.8 million a year earlier.

EPAM Systems (NYSE: EPAM)

EPAM Systems, a leading digital transformation services and product engineering company. The company also specializes in IT consulting. Over the last year, EPAM systems share price has given a return of 120%. During the last quarter, EPAM’s total revenues increased 51.6% year-over-year to $988.54M, compared to analyst estimates of $964.12M.

Oasis Petroleum (NASDAQ: OAS)

Oasis Petroleum is an exploration and production company focused on crude oil and natural gas. Oasis exited from bankruptcy in November 2020. The company's new common stock began trading on the Nasdaq exchange under the ticker symbol OAS on Nov. 20. $OAS is up 280% since the beginning of the year. The stock has jumped from a price of $35 a share back in January to $133 in November. The company Q3 revenue came in at $402 million versus the consensus estimate of $226 million.

Ford (NYSE: F)

The fifth one is the auto giant Ford motors. When we talk about the stocks which surprised wall street in the past 1 year, we can’t avoid the Ford from the list. Ford was incorporated in 1903 by Henry Ford and the company expanded both domestically and internationally. The stock rallied more than 140% in the last 12 months. Ford posted better-than-expected Q3 financial results and the company increased its annual guidance for the second time this year.

The full blog is here-

5 stocks surprised Wall Street in 2021

“One of the very nice things about investing in the stock market is that you learn about all different aspects of the economy. It’s your window into a very large world.” ― Ron Chernow.

gulfbrokers.com

 

[syamfx2020]

View attachment executium-TCjavmGkjWY-unsplash.jpg
The world's largest cryptocurrency Bitcoin and Ethereum prices up for the second consecutive day and trading in positive territory on Tuesday. At the time of writing, the Bitcoin (BTC) trading is above $48,500 and Ethereum (ETH) trades above $4000.

In the short-term, If the bullish momentum continues the next upside levels to watch, Bitcoin: $49,500/51.000 and Ethereum $4120/80.

EQUITIES

US stock futures slightly rebounded on Tuesday while the overall momentum still remains mixed as the latest reports show the omicron variant was said to have accounted for 73% of all sequenced Covid-19 cases in the U.S.

OIL

Crude oil prices recovered from the previous session sharp fall. On Monday, oil prices tumbled on fears the new variant could dampen economic growth and fuel demand. On the other hand, the oil traders waiting for this inventory report from the American Petroleum Institute (API) will be published on Tuesday, followed by the data from the Energy Information Administration (EIA) on Wednesday.

CURRENCIES

In the currency market, the Canadian dollar remains under pressure ahead of the retail sales data. The markets are forecasting strong numbers for October, with a consensus of 1.0% for retail sales and 1.5% for core retail sales.

GOLD

The precious metal manages to preserve the previous weeks upside momentum on Tuesday after the metal found buyers again below $1790. At the time of writing, the gold price trades above $1796.

Economic Outlook

On the data front, RBA released the last meeting minutes. The minutes showed the central bank remained committed to keeping interest rates at a record low of 0.1% but was evaluating how and when to wind down its A$4 billion ($2.84 billion) in weekly bond purchases.

"Members noticed that the Australian economy was swiftly recovering after the growth interruption caused by the Delta variant outbreak" RBA minutes.

Moving ahead to the North American session, the trading is however likely to become less volatile as many traders wait for tomorrow’s major GDP data from the UK and the US.

Coronavirus update:

Worldwide, more than 273 million people have been confirmed infected and more than 5.3 million have died. The United States has confirmed over 50 million cases and has had more than 800,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD: The currency pair hovers near the 1.1300 psychological. If the bullish momentum continues then the next upside level is to watch 1.1340 and 1.1380. On the downside, any meaningful pullback now seems to find some support near the 1.1250 zones.

The important levels to watch for today: Support- 1.1270 and 1.1250 Resistance- 1.1325 and 1.1360.

GOLD: For today, the resistance for Gold is around 1804, any break over target 1810 then 1814. On the other side, the immediate support near 1788 and any break will drag the metal to 1782/78 levels.

The important levels to watch for today: Support- 1788 and 1782 Resistance- 1800 and 1810.

Quote of the day - "In my book, trying to avoid losses is more important than striving for great investment success" - Howard Marks.

Read more- https://gulfbrokers.com/en/daily-market-report-420

 

[syamfx2020]

The dollar index, which tracks the greenback against a basket of six major rivals trading steady above 96.50 on a strong safe-haven bid ahead of US GDP data, which is set to be released at 13.30 GMT. The US GDP is widely expected that the final reading of 3Q GDP will show that the economy slowed to a modest annual rate of 2.1%.

EQUITIES

Global stocks traded mixed on Wednesday as the investors remain concerned about the spread of the Omicron variant of COVID-19 across the world. "There is now consistent evidence that Omicron is spreading significantly faster than the Delta variant," WHO, director-general Tedros Adhanom Ghebreyesus said on Monday.

OIL

Crude oil prices accelerated on Wednesday after U.S. API data showed a surprise decline in inventories. The API report showed the crude inventories fell by 3.67 million barrels last week.

CURRENCIES

In the currency market, the sterling hits a fresh weekly high against the dollar after the release of UK GDP data. On the other hand, the Euro extend decline against the US dollar and commodity currencies.

GOLD

The Safe-haven metal trading sideways ahead of the busy North American session. Overall, the momentum remains bearish throughout the European session.

Economic Outlook

On the data front, the UK economy grew less than estimated in the third quarter. The GDP increased by 1.1 percent sequentially, following an increase of 5.4 percent in the second quarter.

Moving ahead today, the important events to watch:

US – GDP: GMT – 13.30

US – Existing home sales: GMT – 15.00

US – Consumer confidence: GMT – 15.00

Coronavirus update:

Worldwide, more than 273 million people have been confirmed infected and more than 5.3 million have died. The United States has confirmed over 50 million cases and has had more than 800,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD: The currency pair hovers near the previous session low. On the downside, 1.1220 is a crucial support level to watch for today.

The important levels to watch for today: Support- 1.1250 and 1.1220 Resistance- 1.1300 and 1.1340.

GOLD: For today, the resistance for Gold is around 1795, any break over target 1800 then 1805. On the other side, the immediate support near 1780 and any break will drag the metal to 1776/72 levels.

The important levels to watch for today: Support- 1784 and 1776 Resistance- 1795 and 1804.

Quote of the day - “Investing puts money to work. The only reason to save money is to invest it.” — Grant Cardone.

Read more- https://gulfbrokers.com/en/daily-market-report-421

 

[syamfx2020]

Hello everyone, Merry Christmas, and happy holidays. Global markets will be closed on Friday, Dec. 24 in observance of Christmas. We expect Trading will be thinned out after the North American session today and liquidity is expected to remain low as many are already on the vacation mood.

EQUITIES

US stock futures and European shares as concerns about the omicron strain faded. Omicron variant may produce more infections than Delta, but the risk of hospitalisation is lesser by 40 to 45 per cent, two new studies from Britain have revealed.

OIL

Crude oil futures traded higher on Tuesday after the EIA inventory report indicated that U.S. crude oil stockpiles fell by 4.72 million barrels during the last week, above market estimates for a 2.75-million-barrel decline.

CURRENCIES

In the currency market, the safe-haven US dollar remains under pressure against the commodity currencies and the British pound. Meanwhile, the Euro struggling to hold the previous session gains against the greenback.

GOLD

The precious metal hovers near the fresh weekly high on Thursday supported by a weakness in the US dollar. At the time of writing, the metal trades above $1805.

Economic Outlook

On the data front, US GDP for the third quarter reported better-than-expected. The data showed that the U.S. economy advanced by 2.3%, up from the previous estimate of 2.1%.

Moving ahead today, the important events to watch:

US – Durable goods orders: GMT – 13.30

US – Initial jobless claims: GMT – 13.30

Canada – GDP: GMT – 13.30

Coronavirus update:

Worldwide, more than 275 million people have been confirmed infected and more than 5.3 million have died. The United States has confirmed over 51 million cases and has had more than 805,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD: The US dollar index slightly rebounded from the previous session losses. Moving ahead to the North American session, the USD traders should closely monitor the release of US durable goods orders data.

The important levels to watch for today: Support- 96.00 and 95.80 Resistance- 96.20 and 96.45.

GOLD: The yellow metal trading steady above $1800 on Thursday. If the bullish momentum continues the next upside levels to watch the $1810 and $1815 zone. On the flip side, the immediate support at $1800/1795.

The important levels to watch for today: Support- 1800 and 1795 Resistance- 1810 and 1815.

Quote of the day - “Dangers of watching every tick are twofold: overtrading and increased chances of prematurely liquidating good positions” – Jack Schwager.

Read more- https://gulfbrokers.com/en/daily-market-report-422

 

[syamfx2020]

Global stocks and crude oil futures started the last week of this year on a bearish note as a new virulent omicron variant of the coronavirus takes hold. In the US, almost 2,400 flights were cancelled over the holiday weekend. We should also remember that New Year is approaching and in the next few trading sessions, liquidity will be lower than usual, which could generate some spikes in both directions.

Markets in the UK, Australia and New Zealand are closed on Monday and Tuesday to mark the Christmas and Boxing day holidays. While Thursday is the final trading day in 2021 for stocks in Japan, Germany and Italy as their markets will be closed on Friday.

GOLD

The safe-haven metal-edged higher over lower economic recovery expectation after the fresh spikes in Omicron variant across the world. The metal has also found support in the weakening US dollar.

This week, the gold prices continue to trade above the important support level of $1780. If the bulls manage to push the price to break above the $1815 resistance level, the next target will be at $1830/32. On the flip side, a move below the $1780 level will have the bears targeting the lower level of $1768/60.

DOLLAR INDEX

The dollar index overall momentum remains mixed after last week dollar weakness. But the US dollar was one of the strongest currency pairs this year. The bullish rally was driven by the worries about a slowing global economy and higher inflation.

The technical picture looks weak after the index formed a double top above 96.90. The pullback is now aiming for the 95.80 psychological support. If this level fails to hold, the DXY could retreat towards 95.50. On the flip side, 96.95/97.00 remains the key resistance area to watch this week.

EURUSD

The currency pair jumped during the previous week and the medium-term uptrend will remain in place. However, Bulls will need to regain the 1.1360 level if they want to continue their ascent towards 1.1420. The pair traded with a bid tone for the entire previous week, with some weakness seen only on the last trading day of the week.

For this week, 1.1250 will act as an initial cushion, any break below this level will open doors to 1.1220/00. On the flip side, the bullish breakout of 1.1360 is likely to push the EURUSD into a new trading zone, which may offer further buying opportunities until 1.1420/40.

DOW JONES

This week, Dow Jones is expected to be unstable over the festive period as the end of the transition period approaches on new year’s eve. On the other hand, the economic data is limited this week to the US pending home sales and weekly jobless claims reports.

For this week, 35,600 is the immediate support level, followed by 35,550. If the index breaks below 35,550, the slump will quickly extend toward the 35,000 mark. On the flip side, the first resistance at 36,200 any break above this level will open 36,500 minimum.

Read more- https://gulfbrokers.com/en/weekly-analysis-gold-usd-eurusd-and-dow-jones-18

 

[syamfx2020]

World stock markets and crude oil prices advanced on Monday, as fears over the omicron variant of the coronavirus subsided after many studies have reported that the risk of hospitalisation with an Omicron infection is lesser compared to Delta. Meanwhile, the upside momentum is expected to be limited due to the fast-spreading omicron variant of the coronavirus.

EQUITIES

US stock futures and European shares extend gains for the second consecutive day supported by energy and tech stocks.

OIL

Crude oil prices slightly retreat from the fresh session high. Moving ahead to the North American session, the Investors now await the weekly API report on US crude oil stockpiles due later in the day.

CURRENCIES

In the currency market, the Australian dollar remains one of the strongest currency pairs this month boosted by the gold price and stock market rally. On the other hand, the Yen and Swiss Franc are currently the weakest ones, together with Euro.

GOLD

The safe-haven metal hovers near the key resistance area of $1815/16. Overall, the momentum remained bullish throughout the last three consecutive weeks as the metal received strong support due to fears about the spread of the Omicron variant of coronavirus.

Economic Outlook

On the data front, Japan Industrial production grew to a record high of 7.2% in November, beating market estimates for a 4.8% growth.

Coronavirus update:

Worldwide, more than 277 million people have been confirmed infected and more than 5.4 million have died. The United States has confirmed over 52 million cases and has had more than 810,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD: The currency pair holding the early session gains on Monday. For today, the currency pair should find near term support near 1.1300/1.1280 whereas resistance levels could be 1.1350/60.

The important levels to watch for today: Support- 1.1300 and 1.1280 Resistance- 1.1350 and 1.1380.

GOLD: The metal trades steady above $1810. If the bullish momentum continues then the next upside level is to watch $1820 and $1832. On the downside, any meaningful pullback now seems to find some support near the $1806 zones, below which the slide could further get extended towards the $1800/1795 regions.

The important levels to watch for today: Support- 1810 and 1806 Resistance- 1816 and 1820.

Quote of the day - To be a better investor, you have to stand on your own. You just can’t copy other people’s insights – Li LU.

Read more- https://gulfbrokers.com/en/daily-market-report-423

 

[syamfx2020]

The king dollar remained in favour as a safe haven currency due to global growth fears and the rapid spread of the coronavirus Omicron variant. Moving ahead to the North American session, the USD traders will now be focused on the US pending home sales data which is set to be released later today.

EQUITIES

Global stocks trading mixed while Asian shares edge lower on Wednesday as the investors remain concerned over lower economic recovery expectations after the fresh spikes in Omicron variant across the world.

OIL

Crude oil prices remain under pressure after the release of API inventory data. The data showed the US crude inventories fell by 3.1 million barrels last week. During the previous session, crude oil prices rose to a fresh weekly high supported by supply outages in Ecuador, Nigeria, and Libya.

CURRENCIES

In the currency market, the EURUSD retreat back to below 1.1280 on Wednesday. However, considering the recent bearish sentiment, the US dollar movement will continue to play a vital role in this currency pair's future direction.

GOLD

The precious metal drops back to near the psychological level of $1800 weighed down by the strong dollar and a rise in two-year US Treasury yields. Overall, the momentum remains bearish throughout the European session.

Economic Outlook

Moving ahead today, the important events to watch:

US – Pending home sales: GMT – 15.00

US – EIA crude inventories: GMT – 15.30

Coronavirus update:

Worldwide, more than 278 million people have been confirmed infected and more than 5.4 million have died. The United States has confirmed over 52 million cases and has had more than 812,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

Dollar Index: Technically the overall momentum remained bullish throughout the last two sessions. Meanwhile, the upside movement is limited as the Index lacks clear direction in the absence of fundamentals and thin liquidity.

The important levels to watch for today: Support- 96.20 and 96.00 Resistance- 96.45 and 96.60.

GOLD: For today the first support for the Gold appears to be around $1795, in the short-term any break below $1794 the next downside level is to watch $1787/82. On the other upper side, the immediate resistance around $1808 any break and close above this level will open $1814 then $1820.

The important levels to watch for today: Support- 1797 and 1790 Resistance- 1808 and 1815.

Quote of the day - To make money in stocks you must have the vision to see them, the courage to buy them, and the patience to hold them – Warren Buffet.

Read more - https://gulfbrokers.com/en/daily-market-report-424

 

[syamfx2020]

On Wednesday, the US released the November pending home sales report. The data showed the Pending home sales dipped slightly in last month. The home sales fell 2.2% in November, compared to market expectation of a 0.5% rise, and following a 7.5% surge in October.

EQUITIES

Major US indices marched to yet another set of records on Thursday, pushing the S&P 500 Index above 4,800 for the first time, fueled by a post-holiday rally in tech and health care stocks.

OIL

Crude oil prices closed higher on Wednesday following the release of U.S. crude inventory drawdowns. The data showed the US crude oil inventories fell by 3.576 million barrels last week, compared with market forecasts of a 3.143 million drop.

CURRENCIES

In the currency market, the dollar index ended lower against a basket of six major currencies on Wednesday. The rally in oil boosted commodity-linked currencies in the past 24 hours with the Australian and New Zealand dollar hits the fresh monthly highs.

GOLD

The precious metal struggling to find the upside momentum on Thursday in light year-end trading after suffering a setback in the previous session. At the time of writing, the metal trades below $1800.

Economic Outlook

UK house prices house jumped 10.4% higher annually and 1.0% higher month on month in December.

Moving ahead today, the important events to watch:

US – Weekly jobless claims: GMT – 13.30

US – Chicago PMI: GMT – 14.45

Coronavirus update:

Worldwide, more than 280 million people have been confirmed infected and more than 5.4 million have died. The United States has confirmed over 53 million cases and has had more than 820,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD: The currency pair retreated back to near the psychological level of 1.1300 after it climbed to a fresh weekly high of 1.1365 during the previous session.

The important levels to watch for today: Support- 1.1300 and 1.1270 Resistance- 1.1345 and 1.1380.

GOLD: The yellow metal trading below the $1800 psychological level. Any break below the $1790 will open doors to $1786 then $1780.

The important levels to watch for today: Support- 1794 and 1790 Resistance- 1806 and 1810.

Quote of the day - Great traders aren’t born or made overnight. It takes patience, discipline, and consistency to master the art of trading.

Read more - https://gulfbrokers.com/en/daily-market-report-425

 

[syamfx2020]

The first week of 2022 is expected to be a busy one, the main focus on the highly anticipated OPEC+ meeting on Tuesday. Investors will also be keeping an eye on the FOMC minutes on Wednesday as well as the US nonfarm payrolls data for December on Friday. Meanwhile, Markets in the UK, Australia and New Zealand are remained closed on Monday to mark the New year holiday.

On the earnings front, the companies due to release their results will be the retail giant Bed Bath & Beyond (NASDAQ: BBBY) and the drugstore and pharmacy chain Walgreens Boots Alliance (NYSE: WBA) will be among those reporting earnings this week.

GOLD

The safe-haven metal ended high for the fourth consecutive week supported by the rapid spread of the Omicron variant and the prevailing concerns over rising inflation. For this week, the main drivers for the precious metal remain the movement of the US dollar, US jobs report and the resurgence of coronavirus cases.

On the bullish side, the resistance stays above $1832, and a break above this exposes the metal towards the $1840/45 level. On the flip side, rejection and pullback from the $1865 resistance allow for a dip towards $1820, with $1815 and $1800 forming additional downside targets. $1780 is psychological support that becomes available if the bulls fail to defend $1800.

DOLLAR INDEX

The biggest driver for the greenback this week is the minutes from the last FED meeting and the NFP figures. The December NFP data is expected to show that the economy added more than 400k jobs in December while the unemployment rate declined to 4.1%.

Technically the overall momentum remained bearish for the Index after the bulls failed to extend the rally. In the short term, if the price breaks below 95.50 which would open doors towards 95.10. On the upper side, the first immediate resistance is around 96.00 and then 96.30.

EURUSD

The currency pair ended in positive territory for the second consecutive week. This week the Euro traders are likely to return their focus back to fundamentals with today’s German manufacturing PMI and Tuesday’s German retail sales and employment report.

Technically If the bullish momentum continues then the next upside level is to watch 1.1400 and 1.1430. On the flip side, a breakdown through 1.1300 would negate that bias and suggest a test of the 1.1270 and 1.1250 support regions.

DOW JONES

Dow Jones ended the previous session slightly in the red as investors turned cautious amid record rises in coronavirus cases. The key data’s for the Dow this week will once again be the FOMC as we get the latest minutes from their most recent meeting and US Nonfarm Payrolls report.

The technical scenario is absolutely bullish after the last two weeks bullish sentiment. While considering the recently bullish momentum the Dow may find strong resistance again above 36,600. On the downside, in the short-term the first immediate support at 36,250 followed by 36,000/35,900.

Trading is risky and your entire investment may be at risk. Please ensure that you fully understand the risks involved.

Read more- https://gulfbrokers.com/en/weekly-analysis-gold-usd-eurusd-and-dow-jones-19