The market awaits news of Jerome Powell and the OPEC+ meeting

March 04, 2021 14:30

For yet another week, the markets are still awaiting the evolution of the yields on US bonds and the problems it may bring to the markets, as we see falls in US indices namely the falls in the Nasdaq, due to the fact that the increase in the cost of financing hurts technology companies due to their structure and growth profile, affecting corporate profits.

A few days ago, Fed chairman Powell spoke in front of Congress in an attempt to lessen the fears of inflation, and today, the market will once again be waiting for his statements regarding the possible measures taken in response to the yield curve. 

The OPEC+ meeting is another catalyst for today since the market is awaiting the possibility of a decision on whether to reduce production or maintain the current measures until next April.

An increase in oil production could lower the price in the short term, but if it is decided to maintain the current production rate, the price could be supported.

Analysis of the NQ100

The short-term falls on the Nasdaq have confirmed a breakdown of the bullish channel that it had been following in recent months, after breaking its average of 200 (in red) and the bearish cross of its short and medium-term moving averages (black and orange)

In addition, this movement was supported by strong growth in the negative territory of the MACD after the break of the channel, despite the accumulated overselling in the stochastic indicator, which led to the price to look for its 100% fibonacci retracement level of the last bullish momentum in the lower band of the channel.

In recent days, the price has bounced twice at the 100% fibonacci level, but finally, after a last bearish rebound in its 200-session average in the zone coinciding with the 61.8% fibonacci level, the price has achieved breaking down this important level, thus heading to its current support level that previously acted as resistance in the lower red band.

It is very important to see if the price is able to maintain this level of support, as a break down from this could increase the dips to the 161.8% fibonacci level.

Source: Admiral Markets MetaTrader 5. H4 chart of the NQ100. Data range: from September 29, 2020 to March 4, 2021. Prepared on March 4, 2021 at 1:00 p.m. CET. Keep in mind that past returns do not guarantee future returns.

Price evolution in the last 5 years:

  • 2020: 43.64%
  • 2019: 35.23%
  • 2018: -3.88%
  • 2017: 28.24%
  • 2016: 7.50%

With the Admiral Markets Trade.MT5 account, you can trade Contracts for Differences (CFDs) of the NQ100 and more than 3000 stocks! CFDs allow traders to try to profit from the bull and bear markets, as well as the use of leverage. Click on the following banner to open an account today:


The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:

  1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
  2. Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
  3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
  4. The Analysis is prepared by an independent analyst, Roberto Rojas (analyst), (hereinafter “Author”) based on their personal estimations.
  5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
  6. Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
  7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
Admirals An all-in-one solution for spending, investing, and managing your money

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money.