Daily Market Report: December 4, 2020

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.

December 4, 2020

General Upward Trend Continues Following Recent Market Events

U.S. Stock Market

Last: 30,029

Pivot: 29,650

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
General Upward Trend Continues Following Recent Market Events
USD/CAD

Last: 1.2867

Pivot: 1.2905

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
General Upward Trend Continues Following Recent Market Events
Gold

Last: 1,838.61

Pivot: 1,825

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
General Upward Trend Continues Following Recent Market Events
Oil

Last: 45.71

Pivot: 45.30

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
General Upward Trend Continues Following Recent Market Events
EUR/USD

Last: 1.2145

Pivot: 1.2115

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
General Upward Trend Continues Following Recent Market Events
GBP/USD

Last: 1.3452

Pivot: 1.3420

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
General Upward Trend Continues Following Recent Market Events

Customer Notice: The charts are provided by Trading Central, which is a respected third party research provider. The information provided should not be considered as trading or investment advice. Trade360 provides Trading Central chart analysis to support clients in their trading decisions, which should be independently evaluated. The recipient acknowledges that he is solely responsible for his decisions. The analysis offered reflects the views of Trading Central and are subject to change at any time. Past performance of a financial asset is not a reliable indicator of its future performance. Trade360 cannot be held liable for any information provided by Trading Central. Trade360 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 Trade360, a third party or otherwise.

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