TRADEVIEW MARKETVIEW Week Commencing March 9th 2020
The continuation of the Coronavirus crisis was the main theme last week. All impacted nations around the globe scattered to find possible solutions to ease the panic of not only the general public, but all those of the markets. In looks for solutions several fiscal and political moves were made. In Italy we saw quarantines employed, with the government creating a stimulus package for businesses who have suffered revenue losses of over 25%.
In the US, which all are still discussing, we saw the FED announce a
surprise emergency rate cut, which sent the markets into further panic.
With Gold and other safe havens gaining on the news. Staying with the
US, we also saw NFP numbers come out better than expected, which had
little to no effect in the grand scheme of things as markets only reacted
briefly to the news, before panic once again resurfaced
This week started off with a bang. As OPEC failed to agree on Oil
production cuts, Crude Oil prices fell by over 20%. Saudi Arabia not only
opted to increase supply, but also offer Oil for April at a discounted rate,
which many believe could incite a price war with Russia. Could this week
see a response from Russia, Iran and other producing nations looking to
The volatility surrounding the Coronavirus spread looks set to continue,
as the infection rate keeps rising. Last week we saw FED cuts rates, as the
FTSE 100 fell by over 8% today, many are looking to see what the ECB do,
with a rate decision due on Thursday.
Irrespective of any of these potential moves, you are welcome to follow
the trade opportunities they create on
Irrespective of any of these potential moves, you are welcome to follow the trade opportunities they create on TradeGateHub!
Tuesday: CNY Consumer Price Index (YoY) (FEB)
Wednesday: USD Consumer Price Index (YoY) (FEB)
Thursday: EUR European Central Bank Rate Decision (MAR 12)
CrudeOil – Monthly Chart
Crude Oil started the week on a tear as markets slipped to a 20% decline.
Looking at a longer term monthly chart shows us that the low in which it
reached of $27.25 per barrel had been in fact a floor in the price. Also the
markets have now very clearly reached oversold within the RSI. Will this be
enough to contain prices? If a price war ensues, there me still be more potential
moves in this.
XAUUSD – Monthly Chart
Gold briefly traded at $1,700 on Monday as the markets reacted to the tensions
not only within Oil prices, but the volatility that caused. Several index markets
like the SP500 issued a limit down, where trading was effectively paused for a
few minutes due to losses. Looking at the long term monthly chart, we see that
Gold is nearing all-time highs of close to $2,000. Although around $500 away,
the momentum of the moving averages, highlight the potential for more gains.
However are volumes too close to overbought to see another run?
FTSE 100 – Monthly Chart
The FTSE was another one of the big index markets to suffer on Monday. Now
trading at a 4 year low of 5870, which also looked like a long term support area.
Looking at the monthly time frame gives us the historical insight, as we are
currently seeing historical type moves take place. Or have they already taken
place? The chart shows that we may be at a point of reversal as all indications in
price and volume show us that we are currently oversold. However if the
volumes of the RSI past the current floor, could a panic ensue leading to more
Charts analysed and narrated by Eliman Dambell – firstname.lastname@example.org