Daily Market Report: February 22, 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.

February 22, 2021

Stocks Close Flat as Bond Yields Remain in Focus

U.S. Stock Market

Last: 13,580

Pivot: 13,350

Review:

The Dow closed flat on Friday as investors ditched their bets on bond-proxy sectors of the market, such as utilities and consumer staples amid a sustained rise in long-term Government bond yields. Losses were kept in check by a surge in industrials and energy. The Dow Jones Industrial Average closed flat, after hitting a record intraday high of 31,647.53. The S&P 500 was down by 0.20%, while the Nasdaq Composite finished the day up almost 0.1%.

Technical comment:

The NASDAQ 100 RSI is mixed with a bullish bias.

Preference scenario:

Long positions above 13,350.00, with targets at 14,120.00 & 14,650.00 in extension.

Alternative scenario:

Below 13,350.00, look for further downside with 12,830.00 & 12,200.00 as targets.

Resistance 14,120 14,650 15,000
Support 13,350 12,830 12,200
Stocks Close Flat as Bond Yields Remain in Focus
USD/JPY

Last: 105.49

Pivot: 105.65

Review:

The USD/JPY pair fell slightly on Friday, for a third consecutive day, as it trimmed half of its weekly gain.

Technical comment:

As long as the resistance at 105.65 is not surpassed, the risk of the break below 105.35 remains high.

Preference scenario:

Short positions below 105.65, with targets at 105.35 & 105.20 in extension.

Alternative scenario:

Above 105.65, look for further upside with 105.75 & 105.90 as targets.

Resistance 105.65 105.75 105.90
Support 105.35 105.20 105
Stocks Close Flat as Bond Yields Remain in Focus
Gold

Last: 1,789.19

Pivot: 1,784

Review:

The spot price of Gold last traded at $1784.13, up $8.38 or 0.5%. For the week, it rose 0.4%, a fresh sight as it was the precious metal’s first gain in six weeks.

Technical comment:

The RSI calls for a bounce.

Preference scenario:

Long positions above 1,774.00, with targets at 1,793.00 & 1,805.00 in extension.

Alternative scenario:

Below 1,774.00, look for further downside with 1,760.00 & 1,750.00 as targets.

Resistance 1,793 1,805 1,814
Support 1,774 1,760 1,750
Stocks Close Flat as Bond Yields Remain in Focus
Oil

Last: 59.83

Pivot: 58.60

Review:

New York-traded West Texas Intermediate crude, the key indicator for U.S. crude, last traded at 59.83 on Friday - down $1.27, or 2.1% from its high. For the week, WTI dropped by just 0.5%, breaking its run of consecutive gains.

Technical comment:

The RSI calls for a bounce.

Preference scenario:

Long positions above 58.60, with targets at 60.30 & 61.25 in extension.

Alternative scenario:

Below 58.60, look for further downside with 57.90 & 57.25 as targets.

Resistance 60.30 61.25 61.70
Support 58.60 57.90 57.25
Stocks Close Flat as Bond Yields Remain in Focus
EUR/USD

Last: 1.2128

Pivot: 1.2105

Review:

The EUR/USD exchange rate peaked early on Friday at 1.2144, the highest level since last Tuesday.

Technical comment:

The RSI calls for a new up leg.

Preference scenario:

Long positions above 1.2105, with targets at 1.2145 & 1.2170 in extension.

Alternative scenario:

Below 1.2105, look for further downside with 1.2080 & 1.2060 as targets.

Resistance 1.2145 1.2170 1.2190
Support 1.2105 1.2080 1.2060
Stocks Close Flat as Bond Yields Remain in Focus
GBP/USD

Last: 1.4043

Pivot: 1.4000

Review:

The GBP/USD currency pair hit 1.4043 last Friday, a level that was last seen in April 2018. The Pound finished the week with substantial gains, closing just above 1.4000.

Technical comment:

The RSI is bullish and calls for further advance.

Preference scenario:

Long positions above 1.4000, with targets at 1.4065 & 1.4095 in extension.

Alternative scenario:

Below 1.4000, look for further downside with 1.3975 & 1.3950 as targets.

Resistance 1.4065 1.4095 1.4115
Support 1.4000 1.3975 1.3950
Stocks Close Flat as Bond Yields Remain in Focus

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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