Weekly Technical Analysis with Candlestick Charts – 05 December 2021

Technical Analysis

Weekly Technical Analysis with Candlestick Charts – 05 December 2021

WEEKLY SNAPSHOT

    Manufacturing PMI (Nov), U.K.

    WHEN:                                               WHAT IT HAD INFLUENCED:

1st DECEMBER 2021                                GBP and its subsequent pairs

WHAT HAPPENED: The Manufacturing Purchasing Managers’ Index (PMI) measures the activity level of purchasing managers in the manufacturing sector. A reading above 50 indicates expansion in the sector; below 50 indicates contraction.

GBPAUD is trading in the up channel. Further upside can be seen in the coming week.

     CB Consumer Confidence (Nov), U.S.

     WHEN:                                              WHAT IT HAD INFLUENCED:

     30th NOVEMBER 2021                            USD and its subsequent pairs

WHAT HAPPENED: Conference Board (CB) Consumer Confidence measures the level of consumer confidence in economic activity. It is a leading indicator as it can predict consumer spending, which plays a major role in overall economic activity. Higher readings point to higher consumer optimism. 

USDCAD is currently in the upward channel. Further upside can be seen in the coming week.

Manufacturing PMI (Nov), GERMANY

WHEN:                                              WHAT IT HAD INFLUENCED:

1st DECEMBER 2021                               EUR and its subsequent pairs 

WHAT HAPPENED: The German Manufacturing Purchasing Managers’ Index (PMI) measures the activity level of purchasing managers in the manufacturing sector. A reading above 50 indicates expansion in the sector; below indicates contraction.

EURAUD is currently in the upward channel. Further upside can be seen in the coming week.

Clinging to Omicron Fears, Gold Rides out Talk of Faster Fed Taper

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: Expectations had been heavy all week for gold to collapse into the $1,600 territory after Federal Reserve Chair Jerome Powell announced his willingness for the central bank to speed up the taper of its pandemic-era stimulus, and have a U.S. rate hike faster than originally thought.

But fears about the Omicron’s potential impact on the United States and the world proved bigger in the end, triggering safe-haven buying in gold. That helped the yellow metal’s prices to hover in the high $1,700s and post a gain at the close of Friday’s futures trade in New York.

U.S. gold futures’ most active contract, December, settled Friday’s trade up $21.20, or 1.2%, at $1,783.90 an ounce. For the week, it lost a tiny 0.2%.

Gold’s relative strength also came on the back of the collapse of the 10-year Treasury note, which fell more than 6% on Friday, though the dollar remained strong all week.

GOLD is trading in the down channel. Further downside can be seen in the coming week.

Oil Down 6th Week in Row Despite Optimism Over OPEC Move

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

US oil prices fell back on Friday, posting a sixth straight weekly loss, despite OPEC signaling that it was ready to pull back on production at any time if fears over the Omicron continued to hurt demand for energy.

After closing lower for five days in six, crude prices rose on Thursday and remained higher for most of Friday. But at settlement, WTI, or the West Texas Intermediate benchmark for U.S. crude, fell while Brent, the London-traded global gauge for oil, managed to eke out again.

Analysts read the initial bounce back as a sign of the market’s confidence in OPEC+’s decision to leave its output unchanged for now, with a caveat for change should demand collapse going into the first quarter of 2022.

“Whatever initial comfort the market took with the OPEC decision seems to have evaporated and now there are fears again that this thing is going to come back and bite us in the rear,” said John Kilduff, founding partner of Again Capital, an energy hedge fund in New York.

WTI settled down 24 cents, or 0.4%, at $66.26 per barrel. For the week, the U.S. crude benchmark was down 2.8%. WTI was also off 20% for the past six weeks combined, after hitting a seven-year high of $85.41 during the week ended Oct. 15.

London-traded Brent crude, the global benchmark for oil, settled up 21 cents, or 0.3%, at $69.88. It was down 4% for the week though, and off 18% for the past six weeks combined, after hitting a 2014 high of $86.70 during the week to mid-October.

WTI CRUDE OIL is trading in the down channel. A further downside can be seen in the coming week.

Bitcoin Falls 11% In Selloff

WHAT IT HAD INFLUENCED:

BITCOIN

WHAT HAPPENED: 

Bitcoin was trading at $50,275.4 by 23:58 (04:58 GMT) on the Investing.com Index on Saturday, down 11.17% on the day. It was the largest one-day percentage loss since September 7.

The move downwards pushed Bitcoin’s market cap down to $974.0B, or 41.23% of the total cryptocurrency market cap. At its highest, Bitcoin’s market cap was $1,275.5B.

Bitcoin had traded in a range of $49,659.5 to $53,847.2 in the previous twenty-four hours.

Over the past seven days, Bitcoin has seen a drop in value, as it lost 5.41%. The volume of Bitcoin traded in the twenty-four hours to time of writing was $40.5B or 29.21% of the total volume of all cryptocurrencies. It has traded in a range of $49,659.5391 to $59,174.4492 in the past 7 days.

At its current price, Bitcoin is still down 27.13% from its all-time high of $68,990.63 set on November 10.

BTCUSD is trading in the down channel; downside will be seen in the coming days.      

5 KEY EVENTS TO WATCH OUT

     Construction PMI (Nov), U.K.

 WHEN:                                                              WHAT IT INFLUENCES:

 6th DECEMBER 2021                                       GBP and its subsequent 

                                                                            Pairs

WHAT’S HAPPENING: The Chartered Institute of Purchasing and Supply (CIPS) Construction Purchasing Manager’s Index (PMI) measures the activity level of purchasing managers in the construction industry. A reading above 50 indicates expansion in the construction industry; a reading below indicates contraction. 

A higher-than-expected reading ought to be taken as positive/bullish for the GBP, whereas a lower-than-expected reading should be taken as negative/bearish for the GBP.

      GDP (YoY) (Q3), U.S.

WHEN:                                                                WHAT IT INFLUENCES:

10th DECEMBER 2021                                            USD and its subsequent 

                                                                             Pairs

WHAT’S HAPPENING: Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health.

A higher-than-expected reading ought to be taken as positive/bullish for the USD, whereas a lower-than-expected reading should be taken as negative/bearish for the USD.

    GDP (QoQ) (Q3), JAPAN

WHEN:                                                               WHAT IT INFLUENCES:

7th DECEMBER 2021                                         JPY and its subsequent 

                                                                             Pairs

WHAT’S HAPPENING: Gross Domestic Product (GDP) measures the change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health.

A higher-than-expected reading ought to be taken as positive/bullish for the JPY, whereas a lower-than-expected reading should be taken as negative/bearish for the JPY.

BoC Interest Rate Decision, CANADA

WHEN:                                                               WHAT IT INFLUENCES:

8th DECEMBER 2021                                        CAD and its subsequent 

                                                                            Pairs 

WHAT’S HAPPENING:  Bank of Canada (BOC) governing council members come to a consensus on where to set the rate. Traders watch interest rate changes closely as short-term interest rates are the primary factor in currency valuation.

A higher-than-expected reading ought to be taken as positive/bullish for the CAD, whereas a lower-than-expected reading should be taken as negative/bearish for the CAD.

ZEW Economic Sentiment (Dec), GERMANY

WHEN:                                                               WHAT IT INFLUENCES:

7th DECEMBER 2021                                        EUR and its subsequent 

                                                                            pairs

WHAT’S HAPPENING: The German ZEW Economic Sentiment Index gauges the six-month economic outlook. A level above zero indicates optimism; below indicates pessimism.

A higher-than-expected reading ought to be taken as positive/bullish for the EUR, whereas a lower-than-expected reading should be taken as negative/bearish for the EUR.

EQUITIES IN THE COMING WEEK

1. MongoDB (MDB) to announce its Quarterly Results on 6th DECEMBER 2021, EPS estimated to -0.376 per share while revenue estimated 205.34M. 

2. AutoZone (AZO) to announce its Quarterly Results on 7th DECEMBER 2021, EPS estimated to 20.71 per share while revenue estimated 3.34B.

3. GameStop Corp (GME) to announce its Quarterly Results on 8th DECEMBER 2021, EPS estimated to -0.5175 per share while revenue estimated 1.19B.

4. Oracle (ORCL) to announce its Quarterly Results on 9th DECEMBER 2021, EPS estimated to 1.11 per share while revenue estimated 10.21B.

5. Johnson Outdoors (JOUT) to announce its Quarterly Results on 10th DECEMBER 2021, EPS estimated to 1.39 per share while revenue estimated 170.38M.

TOP COMMODITIES IN THE COMING WEEK

GOLD

Technical Analysis

GOLD is currently in the downward channel. Further downside can be seen in the coming week. 

SILVER

Technical Analysis

SILVER is trading in the downward channel. Further downside can be seen in the coming week.

WTI CRUDE OIL

Technical Analysis

WTI CRUDE OIL is trading in the down channel. Further downside can be seen in the coming week.

TOP CRYPTO IN THE COMING WEEK

BTCUSD

Technical Analysis

BTCUSD is trading in the down channel; downside will be seen in the coming days. 

ETHEREUM

Technical Analysis

ETHEREUM is currently in the upward channel. Further upside can be seen in the coming week.   

 TOP CURRENCY IN THE COMING WEEK

EURUSD

Technical Analysis

EURUSD is trading in the up channel; further upside can be seen in the coming days.

GBPUSD

Technical Analysis

GBPUSD is trading in the down channel; further downside can be seen in the coming days.

EURJPY

Technical Analysis

EURJPY is currently in the downward channel. The further downside can be seen in the coming week.

TOP INDEX IN THE COMING WEEK

NASDAQ 100

Technical Analysis

NASDAQ 100 is trading in the down channel; further downside will be seen in the coming days.

S&P 500

Technical Analysis

S&P 500 is trading in the up channel; further upside will be seen in the coming days.

DATA WATCH

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