Daily Market Report: December 3, 2020

Review:

U.S. stocks were mixed after the close on Wednesday, as gains in the Oil & Gas, Telecoms and Healthcare sectors led shares higher while losses in the Consumer Goods, Basic Materials and Industrials sectors led the stock market in the opposite direction. At the close in NYSE, the Dow Jones Industrial Average added 0.11%, while the S&P 500 index gained 0.08%, and the NASDAQ Composite index lost 0.14%.

Technical comment:

The S&P 500 RSI calls for a new upleg.

Preference scenario:

Long positions above 3515.00 with targets at 3745.00 & 3900.00 in extension.

Alternative scenario:

Below 3515.00, look for further downside with 3390.00 & 3210.00 as targets.

Resistance	3,745	3,900	4,070
Support	3,515	3,390	3,210

Review:

USD/CAD traded lower to close at 1.2919.

Technical comment:

As long as the resistance at 1.2945 is not surpassed, the risk of the break below 1.2905 remains high.

Preference scenario:

Short positions below 1.2945 with targets at 1.2905 & 1.2885 in extension.

Alternative scenario:

Above 1.2945, look for further upside with 1.2960 & 1.2980 as targets.

Resistance	1.2945	1.2960	1.2980
Support	1.2905	1.2885	1.2870

Review:

Gold prices rose again on Wednesday, settling above $1,830, as the yellow metal continued to recover from the beatings of November, when breakthroughs in Covid-19 vaccines diverted money from the haven into risk assets rallying on the notion that the world will soon be free from the pandemic.

Technical comment:

The RSI is mixed with a bullish bias.

Preference scenario:

Long positions above 1812.00 with targets at 1841.00 & 1851.00 in extension.

Alternative scenario:

Below 1812.00, look for further downside with 1802.00 & 1793.00 as targets.

Resistance	1,841	1,851	1,866
Support	1,812	1,802	1,793

Review:

Oil prices rose for the first time in three sessions as U.S. crude stockpiles fell for a second week in a row and as data showed OPEC kingpin Saudi Arabia exporting its least to U.S. shores in 35 years in a strident enforcement of the cartel’s production. Crude inventories fell by 0.679 million barrels during the week ended Nov. 27, the Energy Information Administration said. While the drawdown was less than a third of the 2.358 million-barrel decline expected by analysts, it added to the 754,000-barrel drop in the previous week to Nov. 20.

Technical comment:

The RSI is mixed and calls for caution.

Preference scenario:

Short positions below 45.30 with targets at 44.65 & 44.15 in extension.

Alternative scenario:

Above 45.30, look for further upside with 45.90 & 46.25 as targets.

Resistance	45.30	45.90	46.25
Support	44.65	44.15	43.90

Review:

EUR/USD traded flat to close at 1.2061.

Technical comment:

The RSI advocates for further upside.

Preference scenario:

Long positions above 1.2070 with targets at 1.2150 & 1.2175 in extension.

Alternative scenario:

Below 1.2070, look for further downside with 1.2040 & 1.2000 as targets.

Resistance	1.2150	1.2175	1.2200
Support	1.2070	1.2040	1.2000

Review:

GBP/USD fell 0.45% to 1.3354.

Technical comment:

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

Preference scenario:

Long positions above 1.3320 with targets at 1.3400 & 1.3440 in extension.

Alternative scenario:

Below 1.3320, look for further downside with 1.3285 & 1.3260 as targets.

Resistance	1.3400	1.3440	1.3470
Support	1.3320	1.3285	1.3260