Daily Review for April 20, 2022
Traders took profit on gold near USD$2,000 per Troy ounce. The price corrected, however the metal remains on investors’ radar due to the escalating war in Ukraine.
Traders are keeping an eye on the European Union’s inflation report. It is expected at 7.5% y/y, which continues to be above the 2% y/y inflation target. The expectation is on the monetary policy strategy of the European Central Bank.
Netflix lost 200,000 subscribers in Q1 2022. Traders punished the stock by 25% in the aftermarket.
The price of Brent corrected important points due to the difficulty of the free oil market in Europe.
| GOLD -0.02% |
| The price of gold had almost reached the level of USD$2,000 per Troy ounce, however, during the trading session on Wall Street, traders took profits, taking the price to USD$1,949 per Troy ounce. On the other hand, US President Joe Biden announced a new military aid package to Ukraine, worth USD$800 million, in addition to another package of the same amount approved last week. At the moment the total US army package to Ukraine amounts to USD$3 billion. Due to the above and the escalation of the conflict, traders continue buying gold to hedge their portfolios. |
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| Support 1: 1,952.09 Support 2: 1,951.72 Support 3: 1,951.54 Resistance 1: 1,952.64 Resistance 2: 1,952.82 Resistance 3: 1,953.19 Pivot Point: 1,952.27 |
| The price is below the 200-day moving average, right on the line of support 1, which could lead to a rebound. Expected trading range between USD$1,951 and USD$1,953. Pivot point for trend change at USD$1,952. RSI in oversold zone, which could confirm the rebound. |
| EUROSTOXX 50 +0.75% |
| Upward movement of the index ahead of the Euro Zone inflation report. Analysts expect an inflation rate of 7.5% per year. The European Central Bank’s inflation target is 2% p.a., so inflation remains well above this target. Central banks have started a restrictive monetary policy, which is characterized by higher interest rates, in order to collect liquidity from the market and thus seek to lower inflation. |
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| Support 1: 3,776 Support 2: 3,774 Support 3: 3,770 Resistance 1: 3,782 Resistance 2: 3,786 Resistance 3: 3,788 Pivot Point: 3,780 |
| The index is below the 200-day moving average. Expected trading range between 3,770 and 3,788. Pivot point for trend change at 3,780. RSI neutral. The price is approaching resistance 1. If the Bulls manage to overcome it, the next target level is at 3,887 points. |
| NASDAQ 100 -0.89% |
| Netflix lost 200,000 subscribers in Q1 2022, and estimates it could lose 2 million more by Q2 2022. Streaming service offerings are on the rise, with more competitive rates. As a result, Netflix’s market share has declined. The company stock is presenting a significant 25% drop in the aftermarket, which means that traders are punishing Netlfix’s results. The Nasdaq 100 is also correcting about 1%. Now traders are watching Tesla’s results. |
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| Support 1: 14,077.9 Support 2: 14,062.3 Support 3: 14,043.8 Resistance 1: 14,096.4 Resistance 2: 14,096.4 Resistance 3: 14,096.4 Pivot Point: 14,096.4 |
| The price is slightly below the 200-day moving average. RSI neutral, so the correction may advance additional points. Expected trading range between 14,043 and 14,096. Pivot point for trend change at 14,096 points. Bulls are looking to keep the index above 14,000 points. |
| BRENT -4.91% |
| Russia’s oil shipments are down 25% in a week. Meanwhile, U.S. production continues to increase, seeking to supply European markets. On the other hand, JP Morgan announced that sanctions on Russian oil could push oil prices towards USD$185 per barrel. Weekly crude oil stocks in the U.S. decreased by 4 million barrels. Due to the restrictions of the free oil market in Europe, Brent oil prices showed a significant correction. |
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| Support 1: 107.18 Support 2: 106.89 Support 3: 106.72 Resistance 1: 107.64 Resistance 2: 107.81 Resistance 3: 108.10 Pivot Point: 107.35 |
| The price is above the 200-day moving average. Expected trading range between USD$106.72 and USD$108.10. Pivot point for trend change at USD$107.35. RSI in oversold zone, so it may present a rebound at the open. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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