05/02 Market report

【Dow Jones】

US stocks went Black Friday. Intel, Amazon and Apple had poor financial tests, the panic index VIX rose to more than 33, technology stocks on Friday (29th) dropped fiercely. The Dow Jones index plunged 939.18 points. Investors are facing a series of unfavourable factors. The Ukrainian-Russian war interfered with supply chains and the US stock had a panic sell-off. Just looking at this week, Dow Jones fell 2.5% weekly and S&P weekly fell 3.3%. Technology stocks fell 3.9%.

In terms of the daily line, due to Friday's big fall, the opening of the Alligator death cross is quite large. The closing price was below the low of the previous 2 days and this indicates that the selling pressure is actually very heavy. The big fall has also caused the KD to drop to a low-end figure.

Resistance point 1: 33200 / Resistance point 2: 33800 / Resistance point 3: 34200

Support point 1: 32500 / support point 2: 32200 / support point 3: 32000

【Japanese Yen】

The Bank of Japan's April 28 meeting left monetary policy unchanged. In relative to the rise in real yields in the United States and the extension of the rising USD, these are unfavourable situations to the Yen. USDJPY reached 131.01, which is a new low in 20 years.

Standard Chartered Wealth Management analysis reported that the market trading parts of the dollar is obvious and the dollar index went to a new high since December 2002. The foreign exchange market atmosphere is quite delicate and most of the currencies against the Standard Chartered Silver cross rate table shows that the dollar has been overbought which may be interpreted that the yen selling pressure may have come to an end.

Although the USDJPY has been pulled back, the overall technical line on the Alligator shows a golden cross and it still indicates that the current bullish trend is still very strong. KD is at a high-end divergence. The key follow-up to note would be whether the high point can be broken again.

Resistance point 1: 132.200 / Resistance point 2: 133.500 / Resistance point 3: 135.800

Support 1: 128.800 / Support 2: 126.500 / Support 3: 124.800

【Gold】

Kremlin spokesman Peskov said on 29 Apr that Russian President Putin was discussing with officials the idea of linking the Ruble to gold and other commodities.

Nikolay Patrushev, secretary general of the Russian National Security Council, said on the 26 Apr that this practice may allow Russia to have more “sovereignty” over its financial system. Russia's current annual gold production accounts for about 10% of the world's annual production.

At present, the daily trend of gold fell below $1900 per ounce. It means that the selling pressure of gold has officially fallen below the price support. Alligator shows a death cross while the KD shows a gold cross. This indicates that gold is actually still in a battle between the bulls and bears. The current short advantage is relatively large as it has fallen below the key support. In the short period of time, gold may be dominated by the short side.

Resistance point 1: 1920.00 / Resistance point 2: 1930.00 / Resistance point 3: 1950.00

Support point 1: 1880.00 / support point 2: 1850.00 / support point 3: 1830.00

【Crude Oil】

The latest data released by the U.S. Energy Information Administration (EIA) points to a 1.6-million-barrel decline in gasoline inventories for the week that ended in April 22. This is a new low since December 31 2021. The Organization of the Petroleum Exporting Countries (OPEC) has also lowered its global crude oil demand forecast by 400,000 barrels per day this year. Although the demand decreased due to the epidemic, the inventory has fallen faster.

The daily price of crude oil has continued to converge and in terms of technical lines, the Alligator has been in a state of entanglement. KD has also begun to converge and this indicates that the price movement has been oscillating over the past few trading sessions. Many investors are waiting for a clearer breakthrough. It could be on whether the supply of crude oil is solved, or the demand for crude oil is suppressed.

Resistance point 1: 107.800 / Resistance point 2: 109.500 / Resistance point 3: 110.200

Support 1: 103.500 / Support 2: 101.200 / Support 3: 98.800

OnePro Special Analyst

Buy or sell or copy trade crypto CFDs at www.oneproglobal.com

The foregoing is a personal opinion only and does not represent any opinion of OnePro Global, nor is there any guarantee of reliability, accuracy or originality in the foregoing.

Forex and CFD trading may pose a risk to your invested capital.

Before making an investment decision, investors should consider their own circumstances to assess the risks of investment products. If necessary, consult a professional investment advisor.  

www.oneproglobal.com