Daily Market Review & Financial Analysis

Gold Rises along with U.S. Jobless Claims

March 27, 2020

U.S. Stock Market

Pivot : 2,450 Last : 2,627

Review:

U.S. indices closed higher on Thursday, thanks to gains in the Utilities, Telecom and Healthcare sectors. The Dow Jones rose by 6.38%, the S&P 500 climbed 6.24% and the NASDAQ Composite added 5.60% to its value.

Technical comment:

The S&P RSI is bullish and calls for further upside (researched by Trading Central).

Preference scenario:

Long positions above 2,450 with targets at 2,710 and 2,880 in extension.

Alternative scenario:

Below 2,450, look for further downside with 2,350 and 2,280 as targets.

Resistance 2,710 2,880 2,930
Support 2,450 2,350 2,280

Microsoft (MSFT)

Pivot : 147.40 Last : 153.64

Review:

Microsoft shares rose 6.26% after the company announced that the acquisition of Affirmed Networks should help it draw closer to telcos deploying 5G networks that rely heavily on commodity servers.

Technical comment:

The RSI is above its neutrality area at 50, while the MACD is below its signal line and positive (researched by Trading Central).

Preference scenario:

As long as 147.40 is the support look for 168.10.

Alternative scenario:

Below 147.40, expect 139.70 and 135.10.

Resistance 168.10 172.80 177.40
Support 147.40 139.70 135.10

Gold

Pivot : 1,608.00 Last : 1,624.94

Review:

Gold prices rose again on Thursday as a record increase in U.S. jobless claims encouraged expectations of more stimulus.

Technical comment:

The RSI is mixed to bullish (researched by Trading Central).

Preference scenario:

Long positions above 1,608 with targets at 1,645 and 1,659 in extension.

Alternative scenario:

Below 1,608, look for further downside with 1,594 and 1,578 as targets.

Resistance 1,645.00 1,659.00 1,674.00
Support 1,608.00 1,594.00 1,578.00

Crude Oil

Pivot : 24 Last : 23

Review:

Crude prices fell almost 8% on Thursday as the U.S. stimulus package left out President Trump’s plan to top up oil reserves.

Technical comment:

A break below 22.40 would likely trigger a drop towards 21.80 (researched by Trading Central).

Preference scenario:

Short positions below 23.70 with targets at 22.40 and 21.80 in extension.

Alternative scenario:

Above 23.70, look for further upside with 24.20 and 24.65 as targets.

Resistance 24 24 25
Support 22 22 21

Euro (EUR)

Pivot : 1.0990 Last : 1.1047

Review:

The EUR/USD traded higher on Thursday with U.S. jobless claims expected to skyrocket.

Technical comment:

The break above 1.0990 is a positive signal that has opened a path to 1.1095 (researched by Trading Central).

Preference scenario:

Long positions above 1.0990 with targets at 1.1095 and 1.1140 in extension.

Alternative scenario:

Below 1.0990, look for further downside with 1.0925 and 1.0885 as targets.

Resistance 1.1095 1.1140 1.1190
Support 1.0990 1.0925 1.0885

British Pound (GBP)

Pivot : 1.2050 Last : 1.2183

Review:

The pound resumed its rally against the dollar on Thursday as investors continued to digest the impact of the UK government's measures to contain the COVID-19 pandemic.

Technical comment:

The RSI is above its neutrality area at 50 (researched by Trading Central).

Preference scenario:

Long positions above 1.2050 with targets at 1.2250 and 1.2335 in extension.

Alternative scenario:

Below 1.2050, look for further downside with 1.1965 and 1.1870 as targets.

Resistance 1.2250 1.2335 1.2385
Support 1.2050 1.1965 1.1870

Disclaimer: The charts are provided by Trading Central, which is a respected third party research provider. The information provided should not be considered as trading advice. UFX provides Trading Central chart analysis to support clients in their trades, which should be independently evaluated. Past performance is not a reliable indicator of future results. UFX cannot be held liable for any information provided by Trading Central. UFX makes no representation and assumes no liability as to the accuracy or completeness of the information provided nor any loss arising from any investment based on this material, forecast or other information supplied by an employee of UFX, a third party or otherwise.