GER30 tries to Shake Off Covid Jitters
GER30
Another risk-off wave was witnessed yesterday, as the United Sates confirmed their first case of the Omicron Covid-19 variant. It was detected in California and the infected individual was a traveler who had returned from South Africa on November 22. [1]
As per Dr Fauci, the Chief Medical Advisor to the US President, the infected person was fully vaccinated and experienced mild symptoms.
The news pushed GER30 lower on Wednesday and led to the second straight daily close below the 200Day EMA and as long as Covid fears persist, there is high risk for further pain. As such the index is exposed to fresh weekly lows (14,908), although fresh catalyst may be required for a breach of October's low (14,810).
Past Performance: Past Performance is not an indicator of future results.
The index is upbeat though today, and tries to shake off yesterday's renewed Covid jitters, while its technicals show improvement. The Relative Strength Index (RSI) bounces off oversold territory on the Daily chart and has moved above 50 on the Hourly.
This can create further upside, but given the current environment and the multiple obstacles in the immediate upside, we are cautious for a break above the descending trend-line from its all-time highs (currently at 15,550-70). Successful effort can open the door for further recovery towards and beyond 15,781.
Past Performance: Past Performance is not an indicator of future results.
Volatility remains high and Omicron risk-trends are the main driver of the moves, requiring caution. On the data front, Eurozone producer price Index and unemployment rate stand out.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
References
| Retrieved 02 Dec 2021 https://www.cdc.gov/media/releases/2021/s1201-omicron-variant.html |
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