While the majority of traders are busy trading on Cryptocurrency and stocks mentioned by the Reddit community like GME (Gamestop), they are forgetting another important asset and commodity - Crude has moved to its yearly high. For 9 months, Crude futures tumbled to the negative territory and made a low of negative $40 on the Nymex and within a year now it's back to above $58.
Higher demand and subdued supply is driving the bulls rally and it managed to cross a crucial resistance level of $55. OPEC production cut was the big deal, and it also got help from the US stimulus package announced recently.
Technically, Crude prices managed to close above its 200 WMA which was at $58.68. As long as it holds $55, chances are that prices might cross $60 and march towards the next target of $70 on the higher side. While on the downside below $55, next important support is at 50 days MA at $53.08. Overbought RSI suggests it might show some pull-back before it starts a bullish journey.
Gold continues to trade in the bearish channel. Gold prices slid down quite a bit throughout the last week. Concern about rising US interest rates and a strong US dollar is impacting the prices of Gold. Prices went down heavily once it broke down 200 and 50 DMA, which was near to $1853. Further outlook looks bearish, as long as it stays below its crucial price zone of $1853.
On the downside $1765 is the first support which is 50% Fibonacci retracement zone - below that, the next support is at $1691.
Silver prices were moving wildly after the Reddit community attempted to short squeeze.
Last week it made a fresh yearly high to above $30, but retail traders failed to hold the momentum and prices came down sharply - back to $25 an ounce.
Technically, Silver is taking a strong support at its 50 days SMA at $25.69. Below that, next major support is at 200 SMA $23.10. While on the higher side, a 52 week high of $30.08 will act as a strong resistance before it reaches towards its 127.2% Fibonacci retracement level of $34.82.
Dollar index moved quite a bit in the last two weeks. It moved almost 3% in two weeks - from $89 to $91.60. US stimulus and rising Bond prices were helping the US Dollar Index gain some strength from its multi year low. Though Friday’s NFP data gave some disappointment to the Dollar index and prices got the rejection from $91.60 level.
Moving forward, $91.60-92 will act as a strong resistance, above that prices might attempt for 50 EMA, which is at $93.65 followed by 200 SMA at $95.31. While on the down side, previous low of $89 will act as the strong support.
Last week was a bearish move by the EUR/USD pair. Higher Dollar Index and rising Covid cases in the UK drag the Euro down against USD. Prices fell down from its 50 days SMA of 1.21 and went down to 1.1950 area. Current week will be much lighter as there is not much macroeconomic data for the Euro pair. Technically, it might consolidate in the range of 1.2150 to 1.19 area before it moves in any direction.
Bitcoin has just crossed its previous lifetime high 41983 and made a fresh lifetime high of $43947 on Monday. RSI is holding firmly above 54 level which suggests even though prices are high, the trend looks stronger. Next important area on the upside is $45798 which is 127.2% retracement level, next is $50456 which is 161.8% Fibonacci level. On the downside, 50 Hours MVA is near to $37738 which might provide some support if it pulls back.
Today on February 8th, CME (Chicago Mercantile Exchange) is going to list Ethereum Futures on the exchange. Traders believe listing of futures may give some higher volatility for the prices of Ethereum. Ethereum closed the last week by a stunning more than 22% upmove. It is facing strong resistance at the $1750 level. In the case of extended bullish move, if it moves above $1750 the next important target area or resistance area is at $1900 and $2000. While on the downside, first important support is at 23.6% Fibonacci retracement level which is around $1367.
The contents of this article do not constitute trading advice and should be treated as general information only.
Please trade responsibly. For more information about responsible trading please visit: https://deriv.com/responsible/
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with Deriv.com