US OPENING BELL 16-01-2023

[PocketOption]

US OPENING BELL 16-01-2023

EUROPEAN EQUITIES REMAIN LITTLE MOVED AND MIXED AHEAD OF THE US OPENING BELL, WHICH WILL REMAIN LARGELY UNMOVED DUE TO THE MARTIN LUTHER KING HOLIDAY; THE WTI RETRACE FROM RECENT HIGHS, WHILE PRECIOUS METALS CONTINUE THEIR RUN.

The day on the leading European stock exchanges is continuing for the moment as it began this morning. The major indices are showing little movement, and the day will probably follow this trend until the end, mainly for two main reasons, namely the American holiday on the one hand and the scarcity of relevant data in today’s macroeconomic calendar. Currently, the Dax gained 0.17%, the Cac40 gained 0.16%, and the Eurostoxx dropped 0.45%. The FTSE100 instead remains around parity (-0.02%).

Investor sentiment remains positive, but the world indices may take a breath after a very positive last week. After all, starting tomorrow, the macro data that will be released will bring many new insights on various fronts. It is also plausible to assume that traders will first want to wait for this data and then take a firm position in the market.

Elsewhere, the WTI was down slightly after last week’s very positive performance (+8.26%). In this sense, traders are anxiously awaiting OPEC’s Oil Market Report, due to be released tomorrow, to understand what the changes will be compared to December, where the most important news will be the cancellation of China’s zero-covid policy and its impact on crude oil prices. Precious metals, on the other hand, mainly gold and silver, but also copper, continue to update their period highs.

As already mentioned, no significant data is expected to be released today regarding the macro calendar. However, following the WEF in Davos and BOE Governor Bailey’s speech will be necessary.

EURUSD, M15

The EURUSD posted a fake breakout of the most significant intraday support area, the W-1 VAH, revealing buyers’ presence in the 1.08 area. The most interesting intraday resistance area remains the 1.0866 mark. From a technical point of view, the most likely scenario is a continuation of the trend toward resistance. If prices break the resistance, the yearly LVN could be the next target in the medium term. On the opposite side, confirmation of the breakout of the support could lead the pair toward lower support, meaning the W-1 POC and the W-1 VAL.

Main intraday support areas where to look for long trades in case of a bullish candlestick pattern or short trades in case of a bearish candlestick pattern: 1.0817, 1.0743, 1.0718.

Main intraday resistances areas where to look for short trades in case of a bearish candlestick pattern or long trades in case of a bullish candlestick pattern: 1.0866, 1.0945.

S&P500, M30

The S&P 500 found support posting a bullish engulfing around the most significant intraday support between 3980 and 3976 marks (the blue rectangle). In that area, we can find both D-1 and D-2 POC. In contrast, the most critical intraday resistance area is the W-1 VAH. From a technical standpoint, as long as prices remain above the support, the most likely scenario is a continuation of the uptrend toward the resistance. If prices consolidate above the resistance, the following target could be the uncovered POC. On the other hand, a downward breakout of the support could lead prices toward the W-1 POC.

Main intraday support areas where to look for long trades in case of a bullish candlestick pattern or short trades in case of a bearish candlestick pattern: 3980-3976, 3944, 3921.

Main intraday resistances areas where to look for short trades in case of a bearish candlestick pattern or long trades in case of a bullish candlestick pattern: 4000, 4032.

Key:

POC= Point of Control

VAH= Value Area High

VAL= Value Area Low

LVN= Low Volume Node

HVN= High Volume Node

W-1= last week

W-2= two weeks ago

W-3= three weeks ago

D-1= yesterday

D-2= two days ago

D-3= three days ago

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