FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 07 November 2022

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 07 November 2022

Technical Analysis

Oil Slips as China Commits to Zero-COVID Policy

Asian stock futures and commodities slipped on Monday. The Shanghai Composite is up 0.21% at 3,076.41. Overall, the Singapore MSCI is down 0.50% at 277.30. Over in Hong Kong, the Hang Seng Index is up 3.03% at 16,689.00. In Japan, the Nikkei 225 is up 1.29% at 27,540.00, while the Topix index is up 1.23% at 1935.00. South Korea’s Kospi is up 0.81% at 2,368.72. Australia S&P/ASX 200 up 0.60% at 6933.70.

Top News of the Day:

Oil prices fell on Monday amid growing concerns over demand after major importer China reiterated its commitment to maintaining its economically disruptive zero-COVID policy, as it faces its worst outbreak in nearly six months.

The move dispels recent speculation over a potential pivot by China on the zero-COVID policy, which triggered a week-long rally in equity and commodity markets.

Market Summary as per 04/11/2022:

European equities Friday closing. The DAX futures contract in Germany traded up 2.51% at 13,459.85, CAC 40 futures up 2.77% at 6416.45 and the UK 100 futures contract in the U.K. up 2.03% at 7334.85.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 1.26% at 32403.23. The S&P 500 up 1.36% at 3770.56 and the Nasdaq 100 up 1.56% at 10857.03, NYSE closes up 1.71% at 14702.77.

Top Market News Today:

In the Forex market, GBPUSD down 0.31% at 1.1337. The USDJPY up 0.33% at 147.139. The USDCHF up 0.17% at 0.9952. EURUSD down 0.12% at 0.9945, EUR/GBP up 0.24% at 0.8773. The USD/CNY up 0.46% at 7.2153 at the time of writing.

In the Commodity market U.S. Gold futures down 0.49% at $1,672.18. Elsewhere, Silver futures down 1.51% at $20.538 per ounce, Platinum down 1.09% at $950.00 per ounce, and Palladium up 0.94% at $1880.00.

Crude Oil down on Monday; Brent Crude Oil down 0.95% at $97.63 per barrel while U.S. West Texas Intermediate (CLc1) down 1.10% at $90.76.

In the Cryptocurrency Markets, Bitcoin at 20945.00 down 0.99%, Ethereum up 1.29% at 1588.60, Litecoin at 71.26 up 4.82%, at the time of writing.

Top Market Segment to Watch Out Today:

Meta Platforms: Facebook parent company, Meta Platforms (NASDAQ:META), is preparing to lay off thousands of workers this week, the Wall Street Journal reported Sunday citing people familiar with the matter. The announcement is expected as soon as Wednesday.

Economic News:

US: President Joe Biden warned that a Republican win in Tuesday’s midterm elections could weaken U.S. democracy, while former President Donald Trump hinted at another White House bid, two days before votes in which Republicans could gain control of both chambers of Congress.

The comments, made at dueling rallies held in New York and Florida, highlighted the grim prospects that Biden’s Democrats face, despite fulfilling his promises to boost clean-energy incentives and rebuild crumbling roads and bridges.

Republicans have hammered Biden for high inflation and increased crime in the wake of the COVID-19 pandemic, and non-partisan forecasters favor them to win control of the House of Representatives – and possibly the Senate as well. Democrats’ early leads in Senate races in Georgia, Pennsylvania and Nevada have evaporated.

Control of even one chamber would allow Republicans to stymie Democrat Biden’s legislative agenda and launch potentially damaging investigations.

Biden warned that many Republican candidates are threatening democratic norms by echoing Trump’s false claims about a stolen election in 2020.

Euro Zone: The risk of a two-year recession in Britain, flagged this week by the Bank of England, underscores the high stakes for Prime Minister Rishi Sunak and his finance minister Jeremy Hunt as they prepare to announce major tax increases and spending cuts.

The BoE said on Thursday that Britain’s economy would shrink for eight three-month quarters in a row – the longest such run in at least a century – if interest rates go up by as much as financial markets have been expecting recently.

That would be a longer and shallower economic contraction than the ones that followed the COVID-19 lockdowns and the global financial crisis of 2007-09.

But the backdrop of high inflation this time is limiting the policy options available to the government.

Even if borrowing costs do not rise any further at all, the BoE’s forecasts still paint a grim picture of an economy contracting in five of the next six quarters under the strain of a tight cost-of-living squeeze.

Top Economic Releases Today:

  1. JAPAN Household Spending (YoY) (Sep) today at 18:30 this time estimated 2.7%, previously which was 5.1%.
  2. 00 this time estimated -0.40%, previously which was -0.10%.
  3. GERMANY Industrial Production (MoM) (Sep) today at 02:00 this time estimated 0.2%, previously which was -0.8%.

4. AUSTRALIA Westpac Consumer Sentiment (Nov) today at 18:30 previously which was -0.90%.

5. U.S. FOMC Member Mester Speaks today at 15:40.

TECHNICAL SUMMARY

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 1.1326, TAKE PROFIT AT 1.1214 AND STOP LOSS AT 1.1373

EURUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 0.9945, TAKE PROFIT AT 0.9993 AND STOP LOSS AT 0.9909

GBPJPY TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 166.742, TAKE PROFIT AT 165.000 AND STOP LOSS AT 167.533

CHFJPY TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 147.790, TAKE PROFIT AT 148.269 AND STOP LOSS AT 147.449

EURO STOXX 50 TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 3685.20 TAKE PROFIT AT 3704.00 AND STOP LOSS AT 3672.00

WTI CRUDE OIL TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 91.25 TAKE PROFIT AT 92.26 AND STOP LOSS AT 90.53

GOLD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 1670.00, TAKE PROFIT AT 1679.76 AND STOP AT 1659.74

LITECOIN TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 70.323 TAKE PROFIT AT 71.835 AND STOP AT 69.6844

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