December 9, US stock indexes continued to rise, against the backdrop of high oil prices, rising consumer sentiment and maintaining positive expectations, after winning the presidential election of Donald Trump. On Friday, a preliminary study by the University of Michigan showed that the US consumer sentiment index is at its highest level since January 2015. Donald Trump’s plans to carry out significant tax cuts and make huge investments in infrastructure projects continue to support positive investor sentiment. Moreover, it seems that the mood is getting higher as the date of Trump’s inauguration approaches. At the same time, more and more investors are saying that the market has exceeded their expectations, which may lead to profit taking.
The Dow Jones index finished trading Friday, rising 142.04 points, or 0.72%, to the level of 19,756.85. The S & P 500 index rose 13.34 points, or 0.59%, to close at 2,259.53. The Nasdaq Composite Index closed with an increase of 27.14 points, or 0.50%.
December 12, Asian stock indexes traded in different directions, responding to rising oil prices, on the one hand, and problems with regulators in China on the other. On Friday, China’s insurance regulator banned Evergrande from further investing in stocks. Over the weekend, the Organization of Petroleum Exporting Countries reached an agreement with other oil-producing countries to reduce production by 558,000 barrels of crude oil per day. The continuing decline of the yen, relative to the US dollar, has a positive effect on the Japanese stock market. Nikkei Stock Average rose during today’s trading session by 158.66 points, or 0.84%, ending trading at 19.155.03. The S P ASX 200 index almost did not change, adding only 2.21 points, or 0.04%, ending the bidding at the level of 5,562.83. The Shanghai Composite Index fell to -79.91 points, or -2.47%, to close at 3,152.97. The Hang Seng Index is down by -376.60 points, or -1.65%.
In today’s trading, the USD / JPY currency pair quotes continued northward, approaching key resistance at 116.01. The MACD indicator is growing again, indicating a return of bulls. Moving averages attached to the chart, directed to the top, show the preservation of the bullish trend. In this situation, we can expect continued growth of the pair USD / JPY, to test the key resistance level of 116.01. Alternative option. The RSI indicator is in the overbought zone, indicating the possibility of a downward correction. In the case of a resumption of the decline, the USD / JPY currency pair quotes and the breakdown of the Low level, Friday’s daily candle, the bears can start a downward correction to test the key support level of 111.87.
After opening with the gepom down, the quotes of the AUD / USD currency pair recovered, returning to the closing level of the daily candlestick Friday. The MACD indicator continues to grow, approaching the zero line, the intersection of which will show the superiority of the bulls. If the bulls can continue the correction to the top, to test the key resistance level of 0.7505, in the case of the breakdown of which, the bulls will be able to continue the upward movement in the direction of the key resistance level of 0.7728. Alternative option. In the case of a resumption of decline, currency quotations of the pair AUD / USD and the breakdown of the opening level, today’s daily candle, the bears can continue the downward correction in the direction of the key support level of 0.7305.
On Friday, as a result of a decline in the NZD / USD currency pair, a bearish takeover pattern was formed on the daily chart. After that, in spite of a slight correction to the north, today, we can expect a resumption of decline, the quotes of the NZD / USD currency pair, to test the key support level of 0.7053. Alternative option. The MACD indicator continues to grow closer to the zero line, in the case of the intersection of which, a bullish signal will be received. So, in case of continued growth and breakdown of the High level, the daily candle on Friday, we can expect the resumption of bullish dynamics, in the direction of the key resistance level of 0.7296.
Today, gold quotes continued south. Moving averages, on the chart, show a continuing bearish trend, while the RSI indicator is in the oversold zone, indicating the likelihood of a bullish correction. In this situation, we can expect the continuation of the downward movement, to test the key support level of 1142.34. Alternative option. In case of resumption of growth of quotations of gold, and the breakdown of the high level, the daily candle of Friday, the bulls can start an upward movement in the direction of the key resistance level of 1206.80.
Review prepared by Fort Financial Services Research Department. Follow our publications.