European Stocks Extend Their Rally

European Stocks Extend Their Rally

European stocks are set to extend the global stock market rally while we experience more weakness in the mighty dollar, which has made a new two year low. The weakness in the dollar index has brought some life for the gold prices, which are off their lows and now trading above the 1810 price level. Another reason for the gold prices to move higher is the US Jobless Claims data, which has posted two consecutive weeks of gains. 

Overall, the volume in the market is expected to remain subdued as traders will be enjoying their Thanksgiving.

Dow Jones Futures Today

The Dow Jones futures have formed an upward wedge pattern on the 4-hour time frame. The price has tested the upper line of this pattern three times, and this means that it is likely that the Dow price will break out of this pattern to the upside. In addition to this, the Dow Jones futures are also trading above the 50, 100, and 200-day simple moving average on the same time frame, and this confirms that the bulls are in strong of the price. In terms of buy opportunity, the price may move closer to its 50-day SMA which is trading at 26,258. It is also important to keep an eye on the RSI which has started pull away from its overbought zone and currently the reading is at 58. 

The S&P 500 futures, which represent the wider stock market, have formed a symmetrical triangle pattern on the 4-hour time frame. Normally, these patterns break in the direction of the bigger trend. As for the daily time frame, the price is trading well above the 50, 100, and 200-day simple moving averages on the daily time frame, and this confirms the bull trend. The resistance is still at an all-time high, which is at 3,667, and the support is at 3,591—this is where the 50-day SMA is trading on the 4-hour time frame.  

Stock Market Rally

The S&P 500 stock index gave up some of its gains yesterday; the index fell by 0.16%. The energy sector led the index lower- 7 out of 11 sectors closed lower. 

The Dow index lost some of its gains yesterday; the Dow stocks moved the index lower by 0.58%. 19 shares fell while 11 shares closed higher. 

The NASDAQ composite, a tech-savvy index, gained some strength and advanced by 0.60% yesterday. 

S&P 500 Leaders and Laggards: Etsy and Gap  

Etsy stock contributed the biggest gain, soaring 5.44%. Gap stock was the largest drag; it fell by 19.6%. The S&P 500 stock index is up 11% so far this year.

Dow Jones Leaders and Laggards: Visa and Salesforce 

Visa provided the biggest help for the Dow Jones; it advanced by 0.58%, while Salesforce was the largest decliner, it fell by 5.37%. 

Bitcoin and XRP 

The crypto king made a high of 19,500 yesterday but ever since, the price has traded below this level. All eyes are still on the all-time high, and traders are waiting for the price to break above the 20,000 price mark. 

As for the XRP, it has given up serious gains as the price has dropped below the key level of 0.60. If the bearish trend picks up more steam, the price could easily break the key level, which is at 0.50. Any violation of this key level is likely to result in a major sell-off.