Daily Market Report: May 6, 2021

Today’s events & figures – Trade what you know Financial markets feed into world events and are their direct consequence. Keep a daily eye on our roundup of the day’s news, numbers and announcements.

May 6, 2021

Dow Closes at Fresh Record Despite Tech Weakness

U.S Stock Market

Last: 13.00

Pivot: 13.00

Review:

US stocks were mixed after the close on Wednesday. Gains in the Oil & Gas, Basic Materials and Telecoms sectors led shares higher, while losses in the Utilities, Consumer Services and Technology sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average rose 0.29% to hit a new all-time high, while the S&P 500 index added 0.07%, and the NASDAQ Composite index lost 0.37% from its value.

Technical comment:

The Nasdaq 100 RSI is bearish and calls for further decline.

Preference scenario:

Short positions below 13,700.00, with targets at 13,395.00 & 13,300.00 in extension.

Alternative scenario:

Above 13,700.00, look for further upside with 13,780.00 & 13,940.00 as targets.

Resistance 13.00 14.00 14.00
Support 13.00 13.00 13.00
Dow Closes at Fresh Record Despite Tech Weakness
USD/CAD

Last: 1.2283

Pivot: 1.2249

Review:

The USD/CAD exchange rate traded lower, closing at 1.2283.

Technical comment:

The RSI is above 50. The MACD is above its signal line and negative. The MACD must break above its zero level to trigger further gains. Moreover, the price stands above its 20-period moving average (1.2273) but below its 50-period moving average (1.2286).

Preference scenario:

A rebound to 1.2325 would set 1.2345 as a target in extension.

Alternative scenario:

The downside breakout of 1.2249 would call for 1.2215 and 1.2195 as targets.

Resistance 40.80 41.40 42.10
Support 37.70 36.60 36.00
Dow Closes at Fresh Record Despite Tech Weakness
Gold

Last: 1.00

Pivot: 1.00

Review:

Gold prices end higher as Janet Yellen clarified her recent comments on interest rates.

Technical comment:

The RSI is above 50. The MACD is positive and above its signal line. The configuration is positive. Gold is trading above both its 20 and 50-period moving average (respectively at 1,781.40 and 1,779.80).

Preference scenario:

The upside prevails as long as 1,780.00 remains as support.

Alternative scenario:

Below 1,780.00, expect 1,774.50 and 1,771.50 as targets.

Resistance 1.00 1.00 1.00
Support 1.00 1.00 1.00
Dow Closes at Fresh Record Despite Tech Weakness
Oil

Last: 65.24

Pivot: 66.00

Review:

Oil prices fell after hitting their highest level in eight weeks on Wednesday. This came as data showing a record surge in US crude exports and sharply lower petroleum inventories for the last week were offset by COVID outbreaks outside of the United States.

Technical comment:

The RSI is bearish and calls for further decline.

Preference scenario:

Short positions below 66.00, with targets at 64.72 & 64.00 in extension.

Alternative scenario:

Above 66.00, look for further upside with 66.75 & 67.60 as targets.

Resistance 65.10 65.45 65.75
Support 63.95 63.30 63.00
Dow Closes at Fresh Record Despite Tech Weakness
EUR/USD

Last: 1.2006

Pivot: 1.2025

Review:

The EUR/USD currency pair dipped as the US economic outlook continues to improve.

Technical comment:

The RSI is bearish and calls for further decline.

Preference scenario:

Short positions below 1.2025, with targets at 1.1990 & 1.1970 in extension.

Alternative scenario:

Above 1.2025, look for further upside with 1.2045 & 1.2060 as targets.

Resistance 1.2101 1.2119 1.2138
Support 1.2036 1.2005 1.1986
Dow Closes at Fresh Record Despite Tech Weakness
GBP/USD

Last: 1.3905

Pivot: 1.3875

Review:

The Pound held gains against the dollar on Wednesday, a day ahead of the Bank of England’s monetary policy decision as well as the Scottish election that final polls show is too close to call.

Technical comment:

The RSI calls for a bounce.

Preference scenario:

Long positions above 1.3875, with targets at 1.3930 & 1.3950 in extension.

Alternative scenario:

Below 1.3875, look for further downside with 1.3855 & 1.3835 as targets.

Resistance 1.3957 1.3981 1.4005
Support 1.3874 1.3833 1.3810
Dow Closes at Fresh Record Despite Tech Weakness

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