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Market View

Vaccine Bullishness part 2

Tuesday, November 17, 2020 3:29 PM GMT

News of Moderna’s successful vaccine trials hit the wire just one week after Pfizer announced success from its own vaccine. The benchmark indices recovered their intraday losses and closed with major profits. Modena’s vaccine is reportedly 95% effective and does not have to have to be stored at -70 degrees Celsius, unlike Pfizer’s vaccine.     

On major US news, Airbnb submitted its IPO filing on Monday despite COVID-19 continuing to severely impact the travel industry.  The San Francisco-based company generated $219mil profits as well as $1.34bn revenues in the third quarter of this year. US financial services giant PNC has announced it’s cash purchase of Spanish financial services company BBVA’s US business for a whopping $11.6bn - making this the second-largest US  deal since the 2008 crash. Today’s earnings calendar includes Walmart, Home Depot while Tyson Foods Inc announced stellar results for the 4th quarter, exceeding the Zacks Consensus Estimate. Tesla will finally be included in the S&P500 index from 21th of December, pushing the equity higher during the session. 

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On major EU-UK news, Christine Lagarde, President of the European Central Bank, said during the World Economic Forum “We were standing on one side of a massive river of uncertainty and hardship… thanks to the tremendous hard work of companies in the US, Germany and other corners of the world we’re now seeing the other side of the river,”.  Olaf Sholz, German Finance Minister, said the government's coronavirus aid package will be close to €14bn in November as Germany continues to aid companies suffering as a result of the country’s lockdown.  

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Reviewing the technicals, SPX500 is moving above 5EMA and near all-time highs but still below the critical blue zone (3645-3675).  The 3585 level is major support for the bulls. NAS100 is also above the 5 EMA however the move is still not convincing and consolidates within a tight price zone. The grey zone is major resistance to the buyers.

SP500 daily

NAS100 daily

The XAUUSD held above the critical trendline but still, hasn't closed above 38.2% Fibonacci level or the 20EMA and 50SMA. Buyers should monitor this area. 

XAUUSD daily

Heading to the USoil, the commodity managed to break out the 41.5 level to the upside due to the vaccine news but it's currently moving within a triangle. Indeed there is a positive bias as long as USoil remains above 50SMA.    

USoil 240min

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