Technical Analysis Report Today – 06 May 2021

Technical Analysis

Technical Analysis Report Today – 06 May 2021

ASIAN MARKET:-

Mainland Chinese stocks were down by the early morning. The Shanghai Composite was down by 0.16% to 3,441.86. Hong Kong’s Hang Seng Index was up about 0.20% to 28,493.75.

Japan’s benchmark Nikkei average. Nikkei 225 is trading up 1.67 per cent at 29,290.63 on  Thursday, while the  Australian Index S&P / ASX 200 fell 0.65 per cent to 7,049.71. South Korea’s Kospi was up by 0.61% to 3,167.98.

EUROPEAN MARKET:-

The FTSE MIB climbed  up by 2.03%  to 24,463.46 In the cash markets, the DAX futures Germany was trading 2.12%  lower at 14,874.25. CAC 40 futures in France climbed down by 1.40% to 6,339.57, while the FTSE 100 futures in the U.K rose  by  1.68% to 7,039.97, at the time of writing.

US MARKET:-

In the U.S. on Wall Street, the Dow Jones Industrial Average closed  0.29% up  at 34,230.38  the S&P 500 was up 0.07 to 4,167.29 and the Nasdaq 100 was down 0.37% at 13,582.03.

FOREX MARKET:-

In the Forex market, GBPUSD  rose 0.04% at 1.3908. The USDJPY was up 0.14% at 109.33. The USDCHF was up 0.10% at 0.9137. EURUSD was  up 0.02% at 1.2006, EUR/GBP was up 0.02% at 0.8634, at the time of writing.

 COMMODITY MARKET;-

In the commodity market, U.S. Gold futures rose 0.33% at $1,790.85. Elsewhere, Silver futures rose 0.57% to $26.672 per ounce, Platinum fell 0.10% at $1,228.05 per ounce, and Palladium was up 0.30% at $2,981.50.

Brent crude oil was up  0.38% to $69.22  barrel while U.S. West Texas Intermediate (CLc1) rose  0.24% at $69.21.

 CRYPTO-CURRENCY MARKET:-

In the Cryptocurrency Markets, BTCUSD rose 4.68% at $57,235.9 , Ethereum at 3,458.41 up by 5.45%, Litecoin at 336.791  up 1.13%, at the time of writing.

TOP STOCKS TO WATCH OUT TODAY:

Technical Analysis

Unilever up 0.42 at 4,221.5 Apple Inc. up 0.20% at $128.10 , Amazon.com down 1.25 % at $ 3,270.31, TESLA Inc down  0.39% at $670.90, SAP down 0.81% at 115.720, Microsoft down 0.53% at $246.18 ,  Daimler down  0.30% at 72.195.

Economic news:

USA MARKET

Technical Analysis

The White House has signaled privately to lawmakers and stakeholders in recent weeks that it supports taxpayer subsidies to keep nuclear facilities from closing and making it harder to meet U.S. climate goals, three sources familiar with the discussions told Reuters. New subsidies, in the form of “production tax credits,” would likely be swept into President Joe Biden’s multi-trillion-dollar legislative effort to invest in infrastructure and jobs, the sources said.

Wind and solar power producers already get these tax rebates based on levels of energy they generate. Biden wants the U.S. power industry to be emissions free by 2035. He is asking Congress to extend or create tax credits aimed at wind, solar and battery manufacturing as part of his $2.3 trillion American Jobs Plan.

The United States leads the world with more than 90 nuclear reactors, the country’s top source of emissions-free power generation. Yet aging plants have been closing due to rising security costs and competition from plentiful natural gas, wind and solar power, which are becoming less pricey.

“There’s a deepening understanding within the administration that it needs nuclear to meet its zero-emission goals,” said a source engaged in the talks and familiar with the White House thinking.

The White House had no comment. New York state’s Indian Point nuclear power plant, owned by Entergy Corp , closed its last reactor on April 30. In Illinois, Exelon Corp  has said it might close four reactors at two plants by November, if the state does not implement subsidies.Nuclear plants provide thousands of union jobs that pay some of the highest salaries in the energy business. Biden’s allies in building trades unions have lobbied for the production tax credits.

The credits also have the support of Democratic Senator Joe Manchin from the energy-rich state of West Virginia, two of the sources said. He holds outsized power in the evenly divided Senate because he can block his party’s agenda.

EUROZONE:-

Technical Analysis

The Bank of England will say on Thursday that Britain’s economy is heading for a much stronger recovery this year than it previously expected and it might start to slow its pandemic emergency support.

The BoE forecast in February that the world’s fifth-biggest economy would grow by 5% in 2021, having slumped by 10% in 2020.

That was a bigger hit than in most other European economies after Prime Minister Boris Johnson was slower to impose a coronavirus lockdown and had to keep it in place for longer in an economy heavily reliant on face-to-face consumer services.

But many economists say Britain is now set to grow by more than 7% this year, boosted by its fast COVID-19 vaccinations.

The BoE will announce its latest forecasts at 1100 GMT when it is also expected to keep its benchmark interest rate and its bond-buying programme unchanged, for now.

“There’s a growing sense that the UK is finally on the way out of the pandemic, and with that comes an increased focus on the Bank of England’s future tightening plans,” analysts at ING said in a note to clients. “Indeed, we think the Bank may announce some tapering of its quantitative easing programme.”

The BoE is spending 4.4 billion pounds ($6.12 billion) a week on its bond-buying programme, having cut the benchmark rate to an all-time low of 0.1% in March last year.

That pace might slow to 3.2 billion pounds a week to allow the quantitative easing programme, currently capped at 895 billion-pounds, to last until the end of the year, analysts at Bank of America said.

Such a move would represent a moderate step towards the moment when the BoE begins to reverse its emergency stimulus.

Most economists polled by Reuters last month pencilled in a first rate hike only in 2023.

On Wednesday, investors were pricing in a small 15 basis-point increase in rates by September of next year.

EARLY SIGNAL?

“The Bank of England remains a long way off tightening monetary policy, but could be one of the first central banks to signal it’s thinking about it,” Shamik Dhar, chief economist at BNY Mellon  Investment Management.

The Bank of Canada last month said it could start to raise rates by late 2022 and it pared back its bond-buying.

The BoE is treading more cautiously. It said in February it was starting to work on its messaging about how it might tighten monetary policy in the future.

Governor Andrew Bailey has signalled the BoE might start to shrink its massive bond stockpile earlier than it had outlined under his predecessor Mark Carney. That 2018 scenario foresaw no bond sales until the BoE’s benchmark reached 1.5%, a distant prospect now.

Despite the revival of Britain’s economy – retailers and restaurants reopened last month and most restrictions are due to be lifted by the end of June – a big test awaits in September.

That is when finance minister Rishi Sunak is due to finish phasing out a job support programme, the centrepiece of a public spending splurge that has left Britain with record peacetime borrowing.

With unemployment likely to rise, analysts at Citi expect the BoE to resort to a further 50 billion-pound increase to its bond-buying programme in late 2021.

The BoE is also keeping a close eye on how frictions on trade with the European Union weigh on growth. And an election for Scotland’s devolved parliament on Thursday could strengthen calls from nationalists for a new independence referendum that would create fresh political uncertainty for Britain’s economy.

TECHNICAL SUMMARY

USD/CHF:-

Technical Analysis
Technical Analysis

TRADE SUGGESTION- Sell AT 0.9140, TAKE PROFIT AT 0.9100 AND STOP LOSS AT 0.9160.

USD/CAD:-

Technical Analysis
Technical Analysis

TRADE SUGGESTION- Sell AT 1.2276, TAKE PROFIT AT 1.2296 AND STOP LOSS  AT 1.2266.

GBP/USD:-

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 1.3890, TAKE PROFIT AT 1.3940 AND STOP LOSS  AT 1.3865.

S&P 500:-

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 4160.50, TAKE PROFIT AT 4210.50 AND STOP LOSS  AT 4135.50.

SILVER:-

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 26.470, TAKE PROFIT AT 26.870 AND STOP LOSS AT 26.270

ETHEREUM:-

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 3,440.50, TAKE PROFIT AT 3,640.50 AND STOP LOSS  3,340.50 .

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