FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 02 November 2022

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 02 November 2022

Technical Analysis

Energy crisis erodes Europe’s industrial strength

Asian shares climbed on Wednesday. The Shanghai Composite is up 1.33% at 3,008.59. Overall, the Singapore MSCI is down 0.66% at 279.40. Over in Hong Kong, the Hang Seng Index is up 2.48% at 15,824.00. In Japan, the Nikkei 225 is down 0.18% at 27,640.00, while the Topix index is down 0.15% at 1937.00. South Korea’s Kospi is up 0.20% at 2,339.89. Australia S&P/ASX 200 up 0.14% at 6986.70.

Top News of the Day:

Europe needs its industrial companies to save energy amid soaring costs and shrinking supplies, and they are delivering – demand for natural gas and electricity both fell in the past quarter.

It is far too early to rejoice, though. The drop is not just because industrial companies are turning down thermostats, they are also shutting down plants that may never reopen.

Market Summary as per 01/11/2022:

European equities Tuesday closing. The DAX futures contract in Germany traded up 0.64% at 13,338.74, CAC 40 futures up 0.98% at 6328.26 and the UK 100 futures contract in the U.K. up 1.29% at 7186.17.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.24% at 32653.21. The S&P 500 down 0.41% at 3856.11 and the Nasdaq 100 down 1.02% at 11288.98, NYSE closes up 0.30% at 14790.70.

Top Market News Today:

In the Forex market, GBPUSD up 0.28% at 1.1513. The USDJPY down 0.53% at 147.437. The USDCHF down 0.13% at 0.9981. EURUSD up 0.16% at 0.9890, EUR/GBP down 0.10% at 0.8590. The USD/CNY down 0.02% at 7.2713 at the time of writing.

In the Commodity market U.S. Gold futures up 0.18% at $1,651.20. Elsewhere, Silver futures up 0.42% at $19.683 per ounce, Platinum up 0.74% at $951.50 per ounce, and Palladium up 1.12% at $1899.00.

Crude Oil up on Wednesday; Brent Crude Oil up 1.03% at $95.67 per barrel while U.S. West Texas Intermediate (CLc1) up 1.07% at $88.86.

In the Cryptocurrency Markets, Bitcoin at 20530.00 up 0.24%, Ethereum up 0.50% at 1586.70, Litecoin at 55.02 down 0.29%, at the time of writing.

Top Market Segment to Watch Out Today:

CRUDE OIL: Oil prices rose on Wednesday after data suggested U.S. crude inventories unexpectedly shrank in the prior week, although gains were limited as markets hunkered down before a widely-anticipated interest rate hike by the Federal Reserve.

Economic News:

US: A jump in U.S. monthly job openings has thrown the Federal Reserve another confounding bit of data for its policy meeting this week, with more evidence that rapid interest rate increases have yet to bite hard in the real economy.

New data released by the Bureau of Labor Statistics on Tuesday showed firms had 10.7 million job openings at the end of September, a jump of about half a million from August in a number the Fed expects to see move lower as demand in the economy slows.

Yields on U.S. Treasury bonds rose after the release of the data, as did bets that the Fed may raise its target policy rate higher than anticipated.

With the central bank widely expected to lift that rate yet again by three-quarters of a percentage point to a range of 3.75% to 4.00% at the end of a two-day meeting on Wednesday, traders are now leaning to a fifth straight hike of that size at the Fed’s final meeting of the year in December, with the target policy rate seen exceeding 5% in March.

Euro Zone: The European Central Bank should start shrinking its oversized pile of government debt at the start of next year, Bundesbank President Joachim Nagel told a German newspaper, outlining an ambitious timetable for reducing an 8.8-trillion-euro balance sheet.

With inflation running well into double digits, the ECB has been raising rates at the fastest pace on record and last week said that talks could start in December on how to shrink a 3.3- trillion-euro Asset Purchase Programme.

But most policymakers have been cautious about a timeline and Nagel is the first to publicly advocate starting at the beginning of 2023.

“We should start shrinking our bond portfolio at the beginning of next year, for example by allowing existing bonds to expire in a market-friendly way,” Nagel told the Frankfurter Allgemeine Zeitung in an interview.

A staff presentation to policymakers last month suggested outlining the main parameters of the process, often known as quantitative tightening, in December, to be followed by a more detailed plan in February and an actual launch only in the second quarter.

Top Economic Releases Today:

  1. U.S. ADP Nonfarm Employment Change (Oct) today at 08:15 this time estimated 195K, previously which was 208K.
  2. 30 this time estimated 8.850B, previously which was 8.324B.
  3. RUSSIA Unemployment Rate (Sep) today at 12:00 previously which was 3.8%.
  • GERMANY Unemployment Change (Oct) today at 04:55 this time estimated 15K, previously which was 14K.
  • EURO ZONE Manufacturing PMI (Oct) today at 05:00 this time estimated 46.60, previously which was 48.40.

TECHNICAL SUMMARY

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 1.1502, TAKE PROFIT AT 1.1598 AND STOP LOSS AT 1.1456

EURUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 0.9878, TAKE PROFIT AT 0.9905 AND STOP LOSS AT 0.9851

GBPJPY TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 169.492, TAKE PROFIT AT 170.918 AND STOP LOSS AT 168.736

CHFJPY TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 147.650, TAKE PROFIT AT 146.570 AND STOP LOSS AT 148.074

NASDAQ 100 TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 11353.90 TAKE PROFIT AT 10933.35 AND STOP LOSS AT 11559.05

WTI CRUDE OIL TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 89.27 TAKE PROFIT AT 90.53 AND STOP LOSS AT 88.55

GOLD TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 1650.46, TAKE PROFIT AT 1638.30 AND STOP AT 1657.60

LITECOIN TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 54.853 TAKE PROFIT AT 56.022 AND STOP AT 54.414

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