Daily Market Report: May 4, 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 4, 2021

Stocks Start May on a Positive Note, Despite Tech Weakness

U.S Stock Market

Last: 13.00

Pivot: 13.00

Review:

US stocks finished lower as gains in the Oil & Gas, Basic Materials and Healthcare sectors led shares higher, while losses in the Technology, Consumer Services and Consumer Goods sectors held shares back The Dow Jones rose by 0.70%, the S&P 500 gained 0.27%, and the NASDAQ lost 0.48% from its value.

Technical comment:

The Nasdaq 100 RSI is bearish and calls for further downside.

Preference scenario:

Short positions below 13,950.00, with targets at 13,715.00 & 13,645.00 in extension.

Alternative scenario:

Above 13,950.00, look for further upside with 14,070.00 & 14,150.00 as targets.

Resistance 13.00 14.00 14.00
Support 13.00 13.00 13.00
Stocks Start May on a Positive Note, Despite Tech Weakness
Pfizer

Last: 38.65

Pivot: 37.70

Review:

Pfizer (PFE) shares rose by 3.05% ahead of their earnings report, which is expected today before the market opens.

Technical comment:

The RSI is above its neutrality area at 50. The MACD is positive and below its signal line. The stock could retrace in the short term. Moreover, the stock is above its 20 and 50-day moving averages (respectively at 37.81 and 36.12).

Preference scenario:

As long as 37.70 remains as support, look for 40.80 and 41.40 in extension.

Alternative scenario:

The downside breakout of 37.70 would call for 36.60 and 36.00 as targets.

Resistance 40.80 41.40 42.10
Support 37.70 36.60 36.00
Stocks Start May on a Positive Note, Despite Tech Weakness
Gold

Last: 1.00

Pivot: 1.00

Review:

Gold rose by 1.34%, trading close to its significant resistance at $1,800.00 after a fall in US bond treasury yields.

Technical comment:

The RSI is above its neutrality area at 50. The MACD is below its signal line and positive. Prices could retrace in the short term. Gold is above its 20 and 50-period moving averages (respectively at 1,788.40 and 1,778.70).

Preference scenario:

As long as 1,786.50 remains as support, look for 1,803.00.

Alternative scenario:

The downside breakout of 1,786.50 would call for 1,781.00 and 1,778.00 as targets.

Resistance 1.00 1.00 1.00
Support 1.00 1.00 1.00
Stocks Start May on a Positive Note, Despite Tech Weakness
Oil

Last: 64.48

Pivot: 63.95

Review:

Oil prices rose by 1.22% as hopes for a recovery in demand rise ahead of the major summer driving season in the US.

Technical comment:

The RSI is bullish and calls for further upside.

Preference scenario:

Long positions above 63.95, with targets at 65.10 & 65.45 in extension.

Alternative scenario:

Below 63.95, look for further downside with 63.30 & 63.00 as targets.

Resistance 65.10 65.45 65.75
Support 63.95 63.30 63.00
Stocks Start May on a Positive Note, Despite Tech Weakness
EUR/USD

Last: 1.2063

Pivot: 1.2036

Review:

The EUR/USD exchange rate rose by 0.30% as German Retail Sales came out with a solid result of 7.7%.

Technical comment:

The RSI is above 50. The MACD is below its signal line and positive. The pair could retrace. Moreover, the price is above its 20 and 50-period moving averages (respectively at 1.2058 and 1.2040).

Preference scenario:

As long as 1.2036 remains as support, look for 1.2119.

Alternative scenario:

The downside breakout of 1.2036 would call for 1.2005 and 1.1986 as targets.

Resistance 1.2101 1.2119 1.2138
Support 1.2036 1.2005 1.1986
Stocks Start May on a Positive Note, Despite Tech Weakness
GBP/USD

Last: 1.3908

Pivot: 1.3874

Review:

The GBP/USD currency pair rose by 0.60% after a sluggish trading session primarily due to the bank holiday in the UK.

Technical comment:

The RSI is above 50. The MACD is positive and below its signal line. The pair could retrace. Moreover, the price is trading above both its 20 and 50-period moving averages (respectively at 1.3899 and 1.3854).

Preference scenario:

As long as 1.3874 remains as support, look for 1.3981.

Alternative scenario:

The downside breakout of 1.3874 would call for 1.3833 and 1.3810 as targets.

Resistance 1.3957 1.3981 1.4005
Support 1.3874 1.3833 1.3810
Stocks Start May on a Positive Note, Despite Tech Weakness

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