FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 23 November 2022

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 23 November 2022

oil news

As U.S. inventories decline, oil prices rise, but gains are limited by China’s COVID worries.

Asian stock market closed green on Tuesday. The Shanghai Composite is up 0.13% at 3088.94 Overall, the Singapore MSCI is up 0.14% at 295.88. Over in Hong Kong, the Hang Seng Index is down 1.31% at 17424.41. In Japan, the Nikkei 225 is up 0.61% at 28115.74, while the Topix index is up 1.12% at 1994.75 South Korea’s Kospi is down 0.59% at 2,405.27. Australia S&P/ASX 200 up 0.59% at 7181.30.

Top News of the Day:

Oil prices rose further on Wednesday after data indicated that U.S. crude inventories shrank substantially in the past week, although the introduction of new anti-COVID curbs in major Chinese cities put a lid on gains.

Data from the American Petroleum Institute showed that U.S. crude stockpiles fell a bigger-than-expected 4.8 million barrels in the past week, likely heralding a similar decline in official government figures due later today. The focus will also be on the pace of the U.S. government’s drawdown from the Strategic Petroleum Reserve, which is at an over 38-year low. 

Weakness in the dollar, amid uncertainty over the path of U.S. interest rates, also helped support prices.

But gains were muted as rising COVID-19 cases in China saw the introduction of more curbs in major cities, particularly Beijing and Shanghai. The country is now struggling with a record-high increase in daily infections, which markets fear could trigger a slowdown in the world’s largest oil importer.

Market Summary as per 22/11/2022:

European equities Tuesday closing. The DAX futures contract in Germany traded up 0.29% at 14422.35, and CAC 40 futures were up 0.35% at 6657.53. UK 100 futures contract in the U.K. is up 1.03 at 7452.84.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 1.17% at 34094.43. The S&P 500 up 1.38% at 4003.29 and the Nasdaq 100 is also up 1.26% at 11163.35, NYSE closes 1.33% at 15481.41.

Top Market News Today:

In the Forex market, GBPUSD up 0.01% at 1.1884. The USDJPY up 0.09% at 141.34 The USDCHF up 0.35 at 0.9548. EURUSD up 0.33% at 1.0338. EUR/GBP is down 0.53% at 0.8685. The USD/CNY is down 0.53% at 7.1198 at the time of writing.

In the Commodity market U.S. Gold futures up at 0.01% $1,740.10. Elsewhere, Silver futures up 0.41% at $21.135 per ounce, Platinum up 0.64% at $1002.10 per ounce, and Palladium up 1.59% at $1887.00.

Brent Crude Oil up 0.14% at $88.50 per barrel.

In the Cryptocurrency Markets, Bitcoin at 16478.90 up 1.73%, Ethereum up 2.00% at 1160.82, Litecoin at 80.08 up 13.52%, at the time of writing.

Top Market Segment to Watch Out for Today:

AUTODESK: – Autodesk (NASDAQ: ADSK) Reported third-quarter EPS of $1.70, $0.00 in line with the analyst estimate of $1.70. Revenue for the quarter came in at $1.28B versus the consensus estimate of $1.28B.

Autodesk’s stock price closed at $208.90. It is down -5.11% in the last 3 months and down -31.28% in the last 12 months.

Autodesk saw positive EPS revisions and negative EPS revisions in the last 90 days.

Economic News:

US: U.S. President Joe Biden’s plan to forgive federal student loans, first announced in August, has been blocked by two legal challenges, clouding the financial future for millions of American students and graduates.

Biden said on Tuesday he was confident the plan is legal and announced new, temporary relief for borrowers that may mean their next loan payment is not due until August 2023.

WHAT’S THE LATEST NEWS?

 Biden said he would extend the COVID-19 pandemic-era pause in student loan payments until no later than June 30, 2023. The pause will allow the U.S. Supreme Court to review his administration’s requests to lift lower court orders blocking the plan, which affects loans held by the Department of Education.

Payments will resume 60 days after the pause ends, Biden said.

WHO IS ELIGIBLE FOR LOAN FORGIVENESS?

The program forgives $10,000 of debt held by the federal government for individuals who make less than $125,000, couples who make less than $250,000 and $20,000 of debt held by Pell Grant holders, who are mostly lower-income borrowers.

WHAT’S THE STATUS OF APPLICATIONS?

About 26 million Americans have applied for student loan forgiveness since August, and the U.S. Department of Education has already approved requests from 16 million. The government stopped taking new applications Nov. 11, after the Texas judge blocked Biden’s order.

Euro Zone:

The Bank of England will press on with interest rate rises to battle inflation even though Britain is heading into a long albeit shallow recession, with consumers facing an extended cost of living crisis, a Reuters poll of economists found.

Finance Minister Jeremy Hunt announced more pain in an autumn financial statement last week, with tax rises now and spending cuts further ahead, so any relief on borrowing costs would have been welcomed by indebted households.

After adding 75 basis points to Bank Rate earlier this month the Monetary Policy Committee will add a more modest 50 basis points on Dec. 15, taking it to 3.50%, the Nov. 18-22 poll found. In an October poll, the rate was expected to end this year at 3.75%.

Over 75% of respondents, 43 of 56, opted for 50 basis points while 13 said 75.

“In terms of being able to pivot back to 50 I think there was enough in the autumn statement to calm some of the fears at the Bank of England on the outlook for next year,” said James Smith at ING.

Hunt’s budget plan came after the blow dealt to Britain’s fiscal reputation by former prime minister Liz Truss’ unfunded tax cuts, which sent the pound to an all-time low against the U.S. dollar and forced the BoE to prop up bond markets.

Top Economic Releases Today:

  1. USD: FOMC Member Bullards Speak at 01:15
  2. USD: Building Permits, Forecast 1.526M, Previous 1.564M at 18:30
  3. EUR: Service PMI (Nov) Forecast 48.0, Previous 48.6 at 14:30
  4. GBP: Manufacturing PMI, Forecast 45.7, Previous 46.2 at 15:00
  5. NZD: RBNZ Interest Rate Decision, Forecast 4.25%, Previous 3.50%

TECHNICAL SUMMARY

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTIONBUY AT 1.18850, TAKE PROFIT AT 1.20295, SL AT 1.17712 

EURUSD TECHNICAL ANALYSIS

TRADE SUGGESTIONBUY AT 1.03324, TAKE PROFIT AT 1.04763, SL AT 1.02443

USDJPY TECHNICAL ANALYSIS

TRADE SUGGESTION SELL AT 147.015, TAKE PROFIT AT 139.529, SL AT 142.205

AUDUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 0.65833, TAKE PROFIT AT 0.64232, SL AT 0.67276

FTSE 100 INDEX TECHNICAL ANALYSIS

TRADE SUGGESTION BUY AT 7465.3, TAKE PROFIT AT 7548.0, SL AT 7407.3

CRUDE OIL TECHNICAL ANALYSIS

TRADE SUGGESTION SELL AT 82.68, TAKE PROFIT AT 79.16, SL AT 83.78

GOLD TECHNICAL ANALYSIS

TRADE SUGGESTIONBUY AT 1749.63, TAKE PROFIT AT 1771.92, SL AT 1728.94

LITECOIN TECHNICAL ANALYSIS

TRADE SUGGESTIONBUY AT 72.16450, TAKE PROFIT AT 77.77627, SL 67.09490

About Author