Daily Market Report: May 3, 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.

May 3, 2021

Stocks Take a Breather from Recent Rally

U.S Stock Market

Last: 4.00

Pivot: 4.00

Review:

US stocks finished lower on Friday as losses in the Oil & Gas, Technology and Basic Materials sectors led shares downwards. The Dow Jones fell by 0.54%, the S&P 500 dropped by 0.72%, and the NASDAQ lost 0.85% from its value.

Technical comment:

The S&P 500 RSI is mixed with a bullish bias.

Preference scenario:

Long positions above 4,030.00, with targets at 4,270.00 & 4,385.00 in extension.

Alternative scenario:

Below 4,030.00, look for further downside with 3,950.00 & 3,855.00 as targets.

Resistance 4.00 4.00 4.00
Support 4.00 3.00 3.00
Stocks Take a Breather from Recent Rally
Apple

Last: 132.30

Pivot: 127.00

Review:

Apple (AAPL) shares fell by 1.51% even after announcing a better than expected earnings report for Q2.

Technical comment:

The RSI calls for a new up leg.

Preference scenario:

Long positions above 127.00, with targets at 137.80 & 145.00 in extension.

Alternative scenario:

Below 127.00, look for further downside with 116.00 & 112.00 as targets.

Resistance 137.80 145.00 157.00
Support 127.00 116.00 112.00
Stocks Take a Breather from Recent Rally
Gold

Last: 1.00

Pivot: 1.00

Review:

Gold fell by 0.24% on Friday after another spike in the 10-year US Treasury yield pressured on the precious metal.

Technical comment:

As long as 1,772.00 is resistance, look for choppy price action with a bearish bias.

Preference scenario:

Short positions below 1,772.00, with targets at 1,760.50 & 1,757.50 in extension.

Alternative scenario:

Above 1,772.00, look for further upside with 1,777.50 & 1,780.50 as targets.

Resistance 1.00 1.00 1.00
Support 1.00 1.00 1.00
Stocks Take a Breather from Recent Rally
Oil

Last: 63.48

Pivot: 57.30

Review:

Oil prices fell sharply, by 2.35%, as the increase in COVID-19 cases in India weighs on demand.

Technical comment:

The RSI is bullish and calls for further advance.

Preference scenario:

Long positions above 57.30, with targets at 67.20 & 72.30 in extension.

Alternative scenario:

Below 57.30, look for further downside with 53.40 & 50.90 as targets.

Resistance 67.20 72.30 75.40
Support 57.30 53.40 50.90
Stocks Take a Breather from Recent Rally
EUR/USD

Last: 1.2019

Pivot: 1.2055

Review:

The EUR/USD exchange rate fell by 0.86% after the German preliminary GDP came less than expected at -1.7% vs. -1.5% forecast.

Technical comment:

The break below 1.2055 is a negative signal that has opened a path to 1.1990.

Preference scenario:

Short positions below 1.2055, with targets at 1.1990 & 1.1960 in extension.

Alternative scenario:

Above 1.2055, look for further upside with 1.2075 & 1.2100 as targets.

Resistance 1.2055 1.2075 1.2100
Support 1.1990 1.1960 1.1940
Stocks Take a Breather from Recent Rally
GBP/USD

Last: 1.3813

Pivot: 1.3670

Review:

The GBP/USD currency pair fell by 0.96%, although the UK’s Nationwide HPI report came with a positive result on Friday.

Technical comment:

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

Preference scenario:

Long positions above 1.3670, with targets at 1.4010 & 1.4240 in extension.

Alternative scenario:

Below 1.3670, look for further downside with 1.3450 & 1.3260 as targets.

Resistance 1.4010 1.4240 1.43000
Support 1.3670 1.3450 1.3260
Stocks Take a Breather from Recent Rally

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