It seems the Second Quarter (Q2) of 2020 is for Bulls team, were you with them in this period? As we indicated on 11 March 2020 in our previous report that Bulls are monitoring the Markets at its lowest levels. They were waiting for the right time of the market rebounding, to take this unparalleled opportunity and make the best use of it to make huge returns and wealth.
As the Aphorism says; “Wealth is made in times of crisis”.
When we look at the global market indices, we can find the bulls have regained control since late March and early April till today. Therefore, there is no doubt that many banks, financial institutions, hedge funds, some investors, and traders have been able to achieve massive returns, wealth, and acquisitions in a less than quarterly period (Three months).
One of the main rules known to the market participants is, “the best investment in the times of crisis is in the safe havens”. This rule was the reason that pushes gold up during the current quarter, to trade at the highest level above $1,700 an ounce. However, it was remarkable for investors the moving of global stock markets in an upward trend in parallel with gold as a safe haven.
Crude Oil was one of the commodities that grabbed the market participants’ attention in the second quarter of 2020. As known, Crude Oil has dropped to its lowest levels ever in the history in April as a result of low global demand because of Coronavirus pandemic spreading, which led to global countries economy lockdown and Oil price war between the Kingdom of Saudi Arabia and Russia.
However, Crude Oil prices recovered in May and June, which we can see Crude Brent and Crude West Texas Intermediate (WTI) trades nearest $40.00 per barrel, as a result of OPEC+ agreement, which has come into effect since the first of May and the start of global countries reopening its economy gradually.
“It is truly wonderful quarterly performance, with most markets witnessing a clear upward trend, which indicates a large flow of liquidity on the markets, as a result of investor confidence in the ability to cross Coronavirus crisis”; Ahmed Kotb said the founder of Allddon.com.
Below, we will highlight the performance of the financial and stock markets during the second quarter of 2020:
As we can see, Dow Jones Index rebounded from 18,174.00 level since March 2020 to trade currently at 27,342.00. It’s about 9,000 pips up.
Nasdaq 100 index was an excellent investment chance in 2020’s Q2. It’s clearly on the chart the rebounding of the index since the last March from 6,628.00 level, but strikingly that Nasdaq 100 index has succeeded in compensating all its losses since the beginning of Coronavirus pandemic, and trade at the highest level ever in its history at 9,875.00 level.
As we can see S&P 500 index has rebounded from its lowest level in 2020 at 2,195.00 level to trade currently at 3,211.00 level.
DAX 30 index was one from the best investment opportunity in 2020’s Q2, where the index has rebounded from its lowest level in 2020 at 7,962.00 to trade currently at 12,859.00 level.
In our latest technical analysis of DAX 30 index, we indicated the importance of 10,716.20 where if the index broke through this level we expect the testing of 11,364.40.
It is clear to us that FTSE 100 index rebounded from 4,898.00 to trades now at 6,490.00 level. We have to mention that the Crude Oil rebound has supported FTSE 100 index in April and May.
Asian Stocks Markets
The Shanghai Composite Index (SSEC) has seen a rebound since late March from the 2,646.00 level to trade now at 2,950.00 level.
Japanese Nikkei 225 index has seen a sharp decline during the past February and March, where Japan was one of the first countries has affected by the Coronavirus, but the index returned to recover from its lowest levels in 2020 at 16,358.00, to trade now at 23,178.00.
Australian index (AU200) has rebounded from its lowest levels in 2020 at 4,420.00, to trade now at 6,147.00 level.
Although EURUSD Pair was volatile most of Q2, however, buying this pair in May was a brilliant investment opportunity.
As we can see EURUSD pair was in a bullish trend from its lowest level in 2020 at 1.06356 and reached its highest levels during the second quarter in June at 1.13836.
At the EURUSD latest technical analysis, we have talked about the importance of 1.07450 level as a support. Also, we have indicated that the breakthrough of the resistance level will lead the pair to test higher resistance levels.
GBPUSD pair managed to rebound from its lowest level in 2020 at 1.14116 to trade now at 1.27314. GBPUSD pair is doing a great job since the middle of May till now, which was a great investment opportunity for investors and traders.
Since the middle of March with Coronavirus outbreak, Gold was from the investment priority for investors and traders as a safe-haven. Gold has pushed from its lowest level in 2020 at 1,451.00 to reach its highest level in Q2 at 1,765.00.
In the latest Gold technical analysis, we have indicated to the positivity of the breakthrough of the horizontal channel, and 1,638.63 level for Gold.
Crude WTI has seen its lowest levels in history where WTI prices were under Zero in April. There were some reasons behind this historical drop such economies shut down in most of the countries around the world because of the Coronavirus outbreak, and the Oil price war between Saudi Arabia and Russia.
And over time, countries around the world began to ease the restrictions of the closure and re-open the economy gradually with the beginning of Coronavirus decline around the world, besides, Saudi Arabia and Russia were able to reach a deal to reduce production, which began to be applied since early last May.
All of the above has led to Oil price recovery, and as shown in the chart, Crude WTI managed to recover from its lowest levels since last April, to trade now at $ 40.42 a barrel.
We had previously indicated in our technical analysis of West Texas Intermediate (WTI) on March 11th to the importance of 36.30 level as resistance.
As we all know, the Coronavirus outbreak has effected the countries’ economies heavily, which lowered global Oil prices. As a result of that, Crude Brent fell to 19.39 level, which is the lowest level of the Crude in 2020.
However, with the beginning of countries’ economies re-open gradually and life returning to normal, this resulted in Crude Brent prices recovery during April and is currently trading at the level of $43.33 a barrel.
We had previously noted through our previous Crude Brent’s technical analysis on May 5, 2020, that the breaches of Crude for the horizontal resistance level of 29.77 is a positive indicator for Crude.
Bitcoin was from the best investment opportunity in the second quarter of 2020, as Bitcoin recovered from its lowest levels in 2020 at 3,850.00, to reach its highest peak during the second quarter at 10,429.00.
We had indicated in the latest technical analysis Bitcoin report that it is facing a strong and important resistance zone between 9,612.50 and 10,000.00 levels.