Daily Market Report: December 4, 2020

Review:

U.S. stocks were higher after the close on Thursday, as gains in the Oil & Gas, Consumer Goods and Industrials sectors established the upward trend. At the close in NYSE, the Dow Jones Industrial Average gained 0.73% to hit a new all-time high, while the S&P 500 index added 0.35%, and the NASDAQ Composite index climbed 0.58%.

Technical comment:

The Dow Jones RSI calls for a new upleg.

Preference scenario:

Long positions above 29,650 with targets at 30,120 & 30,400 in extension.

Alternative scenario:

Below 29,650, look for further downside with 29,460 & 29,230 as targets.

Resistance	30,120	30,400	30,520
Support	29,650	29,460	29,230

Review:

USD/CAD traded lower to close at 1.2867.

Technical comment:

The RSI calls for a new downleg.

Preference scenario:

Short positions below 1.2905 with targets at 1.2825 & 1.2800 in extension.

Alternative scenario:

Above 1.2905, look for further upside with 1.2925 & 1.2940 as targets.

Resistance	1.2905	1.2925	1.2940
Support	1.2850	1.2825	1.2800

Review:

Gold futures on Thursday marked their third straight session gain, finding support on renewed talk surrounding another U.S. coronavirus relief deal. "The key to Congress reaching a deal on a stimulus package could come from [Friday's] nonfarm payroll report,". "The last nonfarm payroll report of the year could show the labor market is in worse shape and that long-term unemployment is out of control." February gold rose $10.90, or 0.6%, to settle at $1,841.10 an ounce.

Technical comment:

The RSI is mixed to bullish.

Preference scenario:

Long positions above 1825.00 with targets at 1851.00 & 1861.00 in extension.

Alternative scenario:

Below 1825.00, look for further downside with 1817.00 & 1807.00 as targets.

Resistance	1,851	1,861	1,869
Support	1,825	1,917	1,807

Review:

Oil prices rose for a second day in a row as OPEC and its allies managed to announce a production hike without scaring the market — a development that underscored the cartel was finally learning from past mistakes. The 13-member Saudi-steered Organization of Petroleum Exporting Countries and 10 allies led by Russia agreed to increase production by 500,000 barrels per day beginning in January after days of tense discussions. This will bring the total production cuts at the start of 2021 to 7.2 million barrels per day.

Technical comment:

The RSI is mixed to bullish.

Preference scenario:

Long positions above 45.30 with targets at 45.90 & 46.25 in extension.

Alternative scenario:

Below 45.30, look for further downside with 45.05 & 44.65 as targets.

Resistance	45.90	46.25	46.65
Support	45.30	45.05	44.65

Review:

EUR/USD climbed to close at 1.2145, at levels not seen since April 2018, even with the European Central Bank widely expected to enhance its quantitative easing next week.

Technical comment:

The RSI calls for a bounce.

Preference scenario:

Long positions above 1.2115 with targets at 1.2175 & 1.2200 in extension.

Alternative scenario:

Below 1.2115, look for further downside with 1.2095 & 1.2070 as targets.

Resistance	1.2175	1.2200	1.2220
Support	1.2115	1.2095	1.2070

Review:

The pound surged Thursday on a report the U.K. and EU have made progress on fishing quotas, stoking hopes that a post-Brexit deal is within sight. GBP/USD rose 0.63% to $1.3447, though had been as high as $1.35 intraday.

Technical comment:

Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

Preference scenario:

Long positions above 1.3420 with targets at 1.3500 & 1.3530 in extension.

Alternative scenario:

Below 1.3420, look for further downside with 1.3395 & 1.3370 as targets.

Resistance	1.3500	1.3530	1.3550
Support	1.3420	1.3395	1.3370