The Dow, NASDAQ, S&Pand Russell 2000 futures, as well as European stocks were trading in a lower territory as investors took profit after the latest success, meanwhile looking forward to the next, market-driving rally. Global equities are as of this writing trending at record highs driven by a great earnings season and the expected inflation rising.
Meanwhile, gold and oil were seen heading higher.
If we look at gold from a technical perspective, the precious metal is building a return move, stimulated by the downside breakout of its rising flag, as it tests the falling channel top. This structure follows the pattern, and as long as it stays within the flag, the downward trend is expected to resume. On Jan. 4th, the yellow metal left the falling channel, however returned into it on Jan. 8th, stepping into a narrower, for now, steeper falling channel. This situation keeps our position in play and also provides a great entry.
Back to the crypto industry. Bitcoin soared 19.5% on Monday, after Tesla’s (NASDAQ:TSLA) SEC filings showed that it acquired $1.5 billion worth of Bitcoin in order to be liquid in the cryptocurrency. Tesla’s founder and CEO, Elon Musk has recently tweeted his support for the crypto asset.
Elon Musk’s unexpected move had a huge impact on Bitcoin, and could even stimulate the stamp of approval the asset is looking forward to in order to gain mainstream approval and acceptance. Bitcoin has now officially become a part of corporate America, having entered the holdings of the S&P 500’s valued member. Galaxy Digital (crypto investment firm) expert Michael Novogratz is expecting Bitcoin to double and go even further, heading to $100,000. For now, the $50K goal has been almost reached.
Back to commodities. Oil increased for the seventh straight day.
The move comes on the other side of a falling flag, a time-frame of changing bulls—repeating the preceding sharp rally, as expected.