FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 24 November 2022

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 24 November 2022

Technical analysis

Six states petition the U.S. Supreme Court to maintain the hold on Biden’s student loan relief.

Asian stock market closed green on Wednesday. The Shanghai Composite is up 0.26% at 3096.91 Overall, the Singapore MSCI is down 0.16% at 295.38. Over in Hong Kong, the Hang Seng Index is up 0.57% at 17523.81. 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 up 0.53% at 2,418.01. Australia S&P/ASX 200 is up 0.70% at 7231.80.

Top News of the Day:

Six states asked the U.S. Supreme Court to reject President Joe Biden’s bid to reinstate his plan to cancel billions of dollars in student debt that they have argued exceeded his administration’s authority.

The states – Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina – filed a response to the Biden administration’s request for the justices to lift a lower court’s injunction halting the program while litigation over its legality continues. Five of the six states are Republican governed while the other, Kansas, has a Republican attorney general.

In their filing, the states said Biden’s administration is trying to “assert power far beyond anything Congress could have conceived.” The administration has said the Nov. 14 decision to block the plan leaves millions of economically vulnerable borrowers in limbo.

Market Summary as of 23/11/2022:

European equities Wednesday closing. The DAX futures contract in Germany traded up 0.04% at 14427.59, and CAC 40 futures were up 0.32% at 6657.53. UK 100 futures contract in the U.K. is up 0.17 at 7452.84

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 0.28% at 34194.06. The S&P 500 up 0.53% at 4024.28 and the Nasdaq 100 is also up 0.99% at 11285.32, NYSE closes 0.41% up at 15545.52.

Top Market News Today:

In the Forex market, GBPUSD up 0.27% at 1.2081. The USDJPY is down 0.52% at 138.86 The USDCHF up 0.35 at 0.9548. EURUSD up 0.36% at 1.0433. EUR/GBP is up 0.13% at 0.8633. The USD/CNY is down 0.37% at 7.1417 at the time of writing.

In the Commodity market U.S. Gold futures up at 0.61% $1,756.30. Elsewhere, Silver futures up 1.24% at $21.633 per ounce, Platinum down 0.22% at $1003.85 per ounce, and Palladium up 0.88% at $1899.03.

Brent Crude Oil down 0.55% at $84.94 per barrel.

In the Cryptocurrency Markets, Bitcoin at 16683.60 up 0.50%, Ethereum up 2.43% at 1213.03, Litecoin at 76.64 down 2.86%, at the time of writing.

Top Market Segment to Watch Out Today:

Brent crude oil: – Oil prices hovered near two-month lows on Thursday after easing concerns over Russian supply and a worsening economic outlook drove sharp losses this week, although weakness in the dollar on dovish signals from the Federal Reserve helped reduce some selling pressure.

Crude markets plummeted on Wednesday after the Group of Seven nations, or G7, was seen imposing a much higher-than-expected price cap on Russian oil sales. The move saw traders greatly cutting expectations that a strict price cap would have forced Moscow to drastically cut oil production, in order to avoid selling at a loss.

Economic News:

US: Sales of new US homes unexpectedly rose in October, largely driven by an increase in the South and likely representing a pause in an otherwise weak housing market.

Purchases of new single-family homes increased 7.5% to an annualized 632,000 pace last month after falling in September, government data showed Wednesday. The median estimate in a Bloomberg survey of economists called for a 570,000 rate.

Sales in the South rebounded after a sharp retreat a month earlier when Hurricane Ian slammed into Florida and parts of Georgia and South Carolina. The October pace in the South was still slower than in August.

Even with the surprising pickup in sales, buyer demand has rapidly evaporated this year amid the Federal Reserve’s aggressive interest rate hikes to tame inflation. Mortgage rates, which topped 7% by the end of October, have more than doubled this year. That’s put a brake on sales and construction while also helping to push down home prices.

Looking ahead, though, a recent drop in mortgage rates may help to stabilize housing demand. The 30-year fixed mortgage rate has dropped nearly a half percentage point in the past two weeks, the most since 2008 according to Mortgage Bankers Association data released Wednesday.

In addition to the 16% sales pickup in the South, demand in the Northeast also increased. Purchases in the Midwest and West fell.

Euro Zone:

The Bank of England set out operational details on Wednesday of its plans to start selling some of the 19.3 billion pounds ($23.2 billion) of long-dated and index-linked gilts which it bought from Sept. 28 to Oct. 14 to stabilise financial markets.

The BoE is keen to sell in a “timely” way the bonds it bought to halt a fire sale of assets by British pension funds, which was triggered by a slump in bond prices after then-finance minister Kwasi Kwarteng’s Sept. 23 minibudget.

The central bank had previously said sales would begin in the week starting Nov. 29, and that the volume sold would depend on demand from investors – in contrast to its fixed auction schedule to sell gilts bought for quantitative easing purposes.

Wednesday’s announcement gave more details of the BoE’s plans. The BoE intends to offer gilts for sale on Tuesdays, Wednesdays and Fridays, giving minimum prices that it will accept before each sale.

In addition, the BoE said it would not sell gilts at prices lower than the market prices which prevailed during the half hour period from 3 pm to 3.30 pm (1500-1530 GMT) when it would accept bids.

Top Economic Releases Today:

  1. EUR: ECB`s Enria Speaks at 18:45
  2. EUR: ECB Published Account of Monetary Policy Meeting at 18:00
  3. GBP: MPC Member Ramsden Speaks at 15:15
  4. JPY:  Service PMI, Actual 50.0, Previous 53.2 at 06:00
  5. CAD: BoC Senior Deputy Governor Roger Speaks

TECHNICAL SUMMARY

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTIONBUY AT 1.20600, TAKE PROFIT AT 1.22127, SL AT 1.19459

EURUSD TECHNICAL ANALYSIS

TRADE SUGGESTIONBUY AT 1.03950, TAKE PROFIT AT 1.04763, SL AT 1.02443

AUDUSD TECHNICAL ANALYSIS

TRADE SUGGESTION BUY AT 0.67624, TAKE PROFIT AT 0.68675, SL AT 0.67099

USDJPY TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 140.634, TAKE PROFIT AT 137.777, SL AT 142.030

NASDAQ INDEX TECHNICAL ANALYSIS

TRADE SUGGESTION BUY AT 11880.25, TAKE PROFIT AT 12121.27, SL AT 11714.43

BRENT CRUDE OIL TECHNICAL ANALYSIS

TRADE SUGGESTION SELL AT 84.55, TAKE PROFIT AT 82.39, SL AT 86.48 

SILVER TECHNICAL ANALYSIS

TRADE SUGGESTIONBUY AT 21.550, TAKE PROFIT AT 22.005, SL AT 21.009

BITCOIN TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 16135.28, TAKE PROFIT AT 15609.06, SL AT 16764.42

About Author