Overnight Moves
Today, we looked at 14 charts; below are only some of them, but first, let’s have a look at the overnight moves. Last night was not very quiet, and we have a development in the ongoing situation in the Middle East. The conflict seems to be escalating, and there is a lack of information, as well as cases of misinformation, about what is currently happening in the area. It has been confirmed that merchant vessels are being attacked. Market-wise, we see general weakness all around, besides the oil price.
S&P 500 Index
Yesterday, we saw our level of 6,750 come into play, and we managed to bounce off of it by about 30 points before continuing the downward movement this morning. We had hoped it would hold above 6,750, as that would have meant we could have possibly looked forward to upward movement, but that now seems highly unlikely this morning. The weekly levels remain 6,850 to the upside and 6,630 to the downside, with the lowest support currently being found at 6,580.
Brent Crude Oil
IEA member countries have unanimously agreed to release 400 million barrels of oil from emergency reserves. The aim is to stabilise global energy markets following disruptions caused by the Middle East conflict. The US is planning to release 172 million oil barrels from its strategic reserve. At the time of the announcements, there was no real reaction from the market, but in the early hours of this morning, we saw escalations with merchant vessels being attacked, naval mines being placed, and port terminals closed in the Persian Gulf. Our current key levels remain at $120 to the upside, with $90 and $84 to the downside.
Tencent (700)
We spoke about Tencent recently, seeing that it was making a huge move to the upside, and we saw this as a good opportunity to take some profits; we hope you did. Naspers (NPN) and Prosus (PRX) both benefited from this, gaining 7.3% and 8% respectively. Now we are facing some pullback and will have to wait and see if we go back down to our previous lows or if we can manage to stay above the gap. Tencent has earnings coming up next week Wednesday, March 18th, so please keep in mind how this will affect Naspers and Prosus.
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