Asian equities continue making gains despite a sell-off in S&P500 on Monday. (Pivot Orderbook analysis)

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• Asian equities continue making gains despite a sell-off in S&P500 on Monday.
• A contraction in GDP numbers has failed to weigh down Nikkei225.
• Chinese stocks are accelerating despite weaker Retail Sales and a resurgence in Covid-19 cases.

The pair currently trades last at 27950.78.

The previous day high was 28173.1 while the previous day low was 27944.77. The daily 38.2% Fib levels comes at 28031.99, expected to provide resistance. Similarly, the daily 61.8% fib level is at 28085.88, expected to provide resistance.

Markets in the Asian domain are displaying positive moves despite the sell-off in S&P500 on Monday. The 500-stock basket was expected to face turbulence as US markets opened after an extended weekend, therefore, an enhancement in volatility was highly expected.

In the Asian session, the S&P500 futures have recovered meaningfully while the US dollar index (DXY) is displaying a rangebound structure ahead of the US Retail Sales data.

At the press time, Japan’s Nikkei225 added 0.13%, ChinaA50 jumped 1.03%, Hang Seng soared 3.60% and Nifty50 eased 0.15%.

Nikkei225 is holding the reins despite reporting a contraction in Gross Domestic Product (GDP) numbers for the third quarter of CY2022. The Japanese economy has displayed a de-growth of 0.3% in the third quarter vs. expectations of expansion by 0.3% and the prior release of 0.9%. On an annualized basis, the GDP data has displayed a negative growth rate at 1.2% against an expansion of 1.1% as expected and the prior release of 3.5%.

Meanwhile, Chinese equities are enjoying significant liquidity despite the release of downbeat Retail Sales data. The economic catalyst has turned negative at 0.5%. Prolonged follow-up of Covid-19 measures, weak real estate demand, and low inflation figures are responsible for a decline in Retail Sales. Also, Industrial Production landed lower at 5.0% against the consensus of 5.2%.

On the oil front, an upthrust in Covid-19 cases in China has led to a resurgence in weaker economic projections. Therefore, the oil demand will eventually face struggles ahead. It is worth noting that the administration has eased Covid-19 measures. However, Time magazine said in a focus piece that “China just relaxed some pandemic measures, but experts suggest ‘Zero-COVID’ probably won’t be going away anytime soon,”

Technical Levels: Supports and Resistances

XTIUSD currently trading at 27950.78 at the time of writing. Pair opened at 27950.78 and is trading with a change of 0.0 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 27469.62, 50 SMA 27305.23, 100 SMA @ 27454.51 and 200 SMA @ 27158.77.

The previous day high was 28173.1 while the previous day low was 27944.77. The daily 38.2% Fib levels comes at 28031.99, expected to provide resistance. Similarly, the daily 61.8% fib level is at 28085.88, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 27872.67, 27794.55, 27644.34
• Pivot resistance is noted at 28101.0, 28251.21, 28329.33

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