Daily Market Review - 03/12/2014

US Stock Markets

Wall Street finished trading in the red despite a positive start to the day. The market has been rising continuously over the past five years with a yield of 170%. This long term bullish trend is worrying investors. The S&P 500 declined by 0.51%, the NASDAQ by 0.40%, and the Dow Jones by 0.41%. Technically, according to the 4-hour chart, the Dow Jones has created a triangle pattern. Should the index cross below the support level of 16,300, it may fall towards 16,000 and even 15,300. Today, a 10-y Bond Auction is due at 17:01 GMT.

Apple

Apple rose by 0.97% after an analyst at Pacific Crest Securities upgraded his share price to $635 per share. Technically, according to the 8-hour chart, Apple’s share price is trading in an ascending support level. As long as the share remains above the support level of 525, the trend should continue bullish and may even continue to rise to around 550. The Momentum indicator is above 0, which also supports the positive momentum.

Gold

Gold rose by 0.54%, closing at $1,347 an ounce. Technically, according to the weekly chart, gold has breached the descending resistance level and the trend has switched from bearish to bullish. Gold may continue to rise to around 1,400 in the near future. The RSI indicator is above 50, which also supports the positive trend.

Crude Oil

Crude Oil fell by 1.45%, closing at $99.47 a barrel. Technically, according to the daily chart, oil has broken the key support level of 100.00 and is trading in a strong bearish momentum. The next target is 98, and if the bearish trend continues with no correction, oil may keep falling to around 91. The Moving Average 15 supports the negative trend. Today, the Crude Oil Inventories report is expected at 2.1M vs. 1.4M previously.

Euro (EUR)

The euro weakened slightly versus the US Dollar after the German Trade Balance report came out worse than expected at 17.2B vs. 19.3B forecast. Technically, according to the daily chart, the EUR/USD is trading in an ascending channel close to the strong resistance level of 1.3900. Breaching this resistance could lead the pair to around 1.4000. However, failing to do so may send the pair back to around 1.3800 again. Today, the Industrial Production report is forecast at 0.6% vs. -0.7% previously.

British Pound (GBP)

The Pound dropped versus the US Dollar despite the Manufacturing Production report coming out better than expected at 0.4% vs. 0.3% forecast. Technically, according to the 8-hour chart, the GBP/USD is trading close to the support level of 1.6594 and is expected to rise towards 1.6700 again. However, crossing below the support level may lead the pair to 1.6500 areas soon.

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