Weekly Technical Analysis with Candlestick Charts – 28 November 2021

Weekly Technical Analysis with Candlestick Charts – 28 November 2021

WEEKLY SNAPSHOT

    Composite PMI (Oct), U.K.

    WHEN:                                               WHAT IT HAD INFLUENCED:

22nd NOVEMBER 2021                           GBP and its subsequent pairs

WHAT HAPPENED: The Composite PMI Index measures the activity level of purchasing managers in the both sectors. A reading above 50 indicates expansion in the sector; a reading below 50 indicates contraction.

GBPAUD was trading in the down channel; after breakout further downside will be seen in the coming days.

     Initial Jobless Claims, U.S.

     WHEN:                                              WHAT IT HAD INFLUENCED:

     24th NOVEMBER 2021                            USD and its subsequent pairs

WHAT HAPPENED: Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.

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

Retail Sales (MoM) (Oct), AUSTRALIA 

WHEN:                                              WHAT IT HAD INFLUENCED:

25th NOVEMBER 2021                          AUD and its subsequent pairs 

WHAT HAPPENED: Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity.

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

Gold Trend Remains Bullish

WHAT IT HAD INFLUENCED:

GOLD 

WHAT HAPPENED: It’s been a rough start week thus far for the gold (GLD) price, with the metal giving up nearly all of its monthly gains and retreating back into negative territory. However, while some might feel like throwing in the towel, it’s important to note that gold is still sitting above the pivotal $1,750/oz – $1,765/oz level (quarterly resistance area from 2011/2012) and has one of the best-looking charts of any asset class. Combined with sentiment readings that are similar to those we typically find in the depths of bear markets; I remain bullish on gold on both a medium-term and long-term basis.

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

Oil settles down $10/bbl in largest daily drop since April 2020

WHAT IT HAD INFLUENCED:

CRUDE OIL

WHAT HAPPENED: 

Oil prices plunged $10 a barrel on Friday, their largest one-day drop since April 2020, as a new variant of the coronavirus spooked investors and added to concerns that a supply surplus could swell in the first quarter.

Oil fell with global equities markets on fears the variant, could dampen economic growth and fuel demand.

The World Health Organization has designated the new variant, which it named Omicron, as “of concern,” according to the South African health minister.

The United States, Canada, Britain, Guatemala and European countries are among those to restrict travel from southern Africa, where the variant was detected.

Brent crude settled down $9.50, or 11.6%, to $72.72 a barrel, a weekly decline of more than 8%.

U.S. West Texas Intermediate (WTI) crude settled down $10.24 on Friday, or 13.1%, at $68.15 a barrel, declining more than 10.4% on the week in high volume trading after Thursday’s Thanksgiving holiday in the United States.

WTI CRUDE OIL is trading in the down channel; after breakout further downside will be seen in the coming days.

Bitcoin overtakes PayPal on value transferred, sets sights on Mastercard

WHAT IT HAD INFLUENCED:

BITCOIN

WHAT HAPPENED: 

The Bitcoin network already processes more volume by dollar value than PayPal (NASDAQ:PYPL), and the largest decentralized cryptocurrency network in the world by market capitalization could outstrip Mastercard (NYSE:MA) by as early as 2026.

A Thursday report from market intelligence platform Blockdata titled “When might the Bitcoin network process volumes like Mastercard & Visa?” points out that the Bitcoin network processed about $489 billion per quarter in 2021, which is greater than PayPal’s $302 billion. After just 12 years in existence, Bitcoin processes about 27% of Mastercard’s $1.8 trillion per quarter and 15% of Visa’s $3.2 trillion.

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

5 KEY EVENTS TO WATCH OUT

     Manufacturing PMI (Nov), U.K.

 WHEN:                                                              WHAT IT INFLUENCES:

 1st DECEMBER 2021                                       GBP and its subsequent 

                                                                            Pairs

WHAT’S HAPPENING: 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. 

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.

      CB Consumer Confidence (Nov) , U.S.

WHEN:                                                                WHAT IT INFLUENCES:

30th NOVEMBER 2021                                            USD and its subsequent 

                                                                             Pairs

WHAT’S HAPPENING: 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.

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.

    Manufacturing PMI (Nov), GERMANY

WHEN:                                                               WHAT IT INFLUENCES:

1st DECEMBER 2021                                          EUR and its subsequent 

                                                                             Pairs

WHAT’S HAPPENING: 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.

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.

Employment Change (Nov), CANADA

WHEN:                                                               WHAT IT INFLUENCES:

3rd DECEMBER 2021                                        CAD and its subsequent 

                                                                            Pairs 

WHAT’S HAPPENING:  Employment Change measures the change in the number of people employed. Job creation is an important indicator of consumer spending.

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.

GDP (QoQ) (Q3), AUSTRALIA 

WHEN:                                                               WHAT IT INFLUENCES:

30th NOVEMBER 2021                                     AUD 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 AUD, whereas a lower-than-expected reading should be taken as negative/bearish for the AUD.

EQUITIES IN THE COMING WEEK

1. Salesforce.com (CRM) to announce its Quarterly Results on 30th NOVEMBER 2021, EPS estimated to 0.9211 per share while revenue estimated 6.8B. 

2. Hewlett Packard (HPE) to announce its Quarterly Results on 30th NOVEMBER 2021, EPS estimated to 0.4873 per share while revenue estimated 7.39B.

3. RBC (RY) to announce its Quarterly Results on 1st DECEMBER 2021, EPS estimated to 2.79 per share while revenue estimated 11.64B.

4. Marvell (MRVL) to announce its Quarterly Results on 2nd DECEMBER 2021, EPS estimated to 0.3848 per share while revenue estimated 1.15B.

5. DocuSign (DOCU) to announce its Quarterly Results on 3rd DECEMBER 2021, EPS estimated to 0.4608 per share while revenue estimated 532.61M.

TOP COMMODITIES IN THE COMING WEEK

GOLD

Technical Analysis

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

SILVER

Technical Analysis

SILVER was trading in the upward channel; after breakout, downside will be seen in the coming days.

WTI CRUDE OIL

Technical Analysis

WTI CRUDE OIL was trading in the down channel; after breakout further downside will be seen in the coming days.

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 down channel; further downside 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.

EURGBP

Technical Analysis

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

TOP INDEX IN THE COMING WEEK

HANG SENG

Technical Analysis

HANG SENG is trading in the down channel; further downside will be seen in the coming days.

FTSE 100

Technical Analysis

FTSE 100 was trading in the up channel; after breakout further downside will be seen in the coming days.

DATA WATCH

Technical Analysis

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