Daily Review for January 31, 2022
European stock index futures start the week in positive territory. Traders are keeping an eye on Euro Zone GDP and German inflation. Goldman Sachs expects five interest rate hikes by 2022.
Natural Gas futures start the week with upward movements, driven by weather forecasts in Europe and the Northern Hemisphere. Geopolitical tensions continue. WTI approaches USD$90 per barrel.
Bitcoin seeks to reach USD$40,000. Traders are watching MicroStrategy’s presentation on the benefits of Bitcoin adoption for businesses.
Commodities and metals are moving higher, driven by investors’ interest in hedging portfolios in the face of market volatility.
| DAX 40 +0.97% |
| As the week begins, the European stock markets are watching the GDP data for the Euro Zone. Analysts estimate a 4.7% annual rate. At this moment, the market is optimistic about the economic growth, reflected in the upward movement of the DAX 40, which is up 0.97%. The index is trading at 15,491 points. Traders are also keeping an eye on German inflation, where analysts are forecasting a 4.3% annual rate. On the other hand, traders continue to pay attention to corporate results, the FED and geopolitical tensions. |
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| Support 1: 15,467.4 Support 2: 15,440.7 Support 3: 15,413.9 Resistance 1: 15,520.9 Resistance 2: 15,547.7 Resistance 3: 15,574.4 Pivot Point: 15,494.2 |
| The index is at a triple top in the 15,575 area. Expected trading range between 15,413 and 15,574. Pivot point for trend change at 15,494. If the momentum continues, the price could break above the 200-day moving average line. RSI neutral. |
| NATURAL GAS +6.55% |
| Traders are paying close attention to the financial results of Oil & Gas companies. Meanwhile, the price of Natural Gas continues to show upward movements, driven by weather forecasts, which show that the winter will continue to be colder than expected. Due to the increase in prices, Japan, as one of the main importers of the commodity, began to increase imports of thermal coal, in order to replace natural gas needs. On the other hand, the United States continues to aim to replace Russia’s exports to the European Union. |
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| Support 1: 4.929 Support 2: 4.895 Support 3: 4.860 Resistance 1: 4.998 Resistance 2: 5.033 Resistance 3: 5.067 Pivot Point: 4.964 |
| The price is at resistance 2. The commodity remains above the 200-day moving average. Expected trading range between USD$4.86 and USD$5.06 per BTU. If the trend continues, the next Bulls target is USD$5.52 per BTU. RSI moving out of the overbought zone. |
| BITCOIN -2.14% |
| Traders are evaluating a possible rebound of the Bitcoin, towards the USD$40,000 area. At the moment, Bitcoin is down 2.14% and is trading at USD$37,218. On the other hand, Binance is showing intentions to collaborate in the regulation of the crypto market in Russia. Investors are attentive to MicroStrategy’s presentation where the company aims to convince companies and institutions on the evolution, functionality, applicability and future of Bitcoin. |
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| Support 1: 36,964.4 Support 2: 36,792.7 Support 3: 36,661.4 Resistance 1: 37,267.4 Resistance 2: 37,398.7 Resistance 3: 37,570.4 Pivot Point: 37,095.7 |
| The price is slightly above the 200-day moving average. Expected trading range between USD$36,661 and USD$37,570. Pivot point for trend change at USD$37,095. RSI neutral. Bulls initial target is USD$40,611. |
| GOLD +0.31% |
| Goldman Sachs increased its forecast and now estimates five interest rate hikes for this year. If this comes true, there could be significant corrections in the global equity market. Also, gold could play an important role as a hedging asset in the face of market volatility. The metal is currently up 0.31% and is trading at USD$1,790 per Troy ounce. Silver is up 1.06% and is trading at USD$22.53 per Troy ounce. |
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| Support 1: 1,785.94 Support 2: 1,784.87 Support 3: 1,784.19 Resistance 1: 1,787.69 Resistance 2: 1,788.37 Resistance 3: 1,789.44 Pivot Point: 1,786.62 |
| The price is below the 200-day moving average. At this moment gold is at the pivot point, so it could confirm or generate a change of trend. Expected trading range between USD$1,784 and USD$1,789. RSI neutral. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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