Daily Review for April 27, 2022
Christine Lagarde as President of the European Central Bank will present her statements on tapering and the outlook for interest rate hikes.
Nasdaq 100 fell sharply on Tuesday, triggered by China’s pandemic restrictions, inflation, and the escalating war in Ukraine.
Bitcoin continues to correct due to investor panic over the economy.
Weekly US crude oil stocks rose by 4.7 million barrels.
| EUROSTOXX 50 +0.11% |
| Traders are watching Christine Lagarde’s statement as President of the European Central Bank. The main topic of interest is the monetary policy strategy, including tapering (withdrawal of economic stimulus) and interest rate hikes. At the moment the Eurostoxx 50 is up 0.11% and is trading at 3,664 points. Traders are also paying attention to Beermann’s statement as president of the German Buba. |
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| Support 1: 3,642 Support 2: 3,631 Support 3: 3,624 Resistance 1: 3,660 Resistance 2: 3,667 Resistance 3: 3,678 Pivot Point: 3,649 |
| The index is below the 200-day moving average. Expected trading range between 3,624 and 3,678. Pivot point for trend change at 3,649. RSI leaving the oversold zone, so the index could present a recovery of several points, even reaching the level of resistance 1. |
| NASDAQ 100 +0.69% |
| The index fell sharply on Tuesday, triggered by pandemic restrictions in China, inflation, and the escalating war in Ukraine. The Nasdaq 100 closed yesterday down 3.90%. Traders are looking forward to Meta Platforms (Facebook) financial results today. On the other hand, yesterday, Microsoft outperformed market expectations, so the stock rose 4.51% in the aftermarket. Alphabet (Google), on the other hand, did not exceed expectations, so the stock closed with a 3.59% drop. |
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| Support 1: 13,051.7 Support 2: 13,013.3 Support 3: 12,988.2 Resistance 1: 13,115.2 Resistance 2: 13,140.3 Resistance 3: 13,178.7 Pivot Point: 13,076.8 |
| The index rebounded from support 3, seeking to recover the 13,000 point zone. Expected trading range between 12,988 and 13,178. Pivot point for trend change at 13,076. RSI neutral, so the index could recover several points, possibly towards resistance 2. |
| BITCOIN -4.70% |
| Bitcoin continues to correct due to investors panic about the economy. Meanwhile Fidelity Investments in the USA will allow clients to invest in Bitcoin. The above as a complement to their retirement plans. In Brazil, the Senate approved the Bitcoin Law. On the other hand, one of the main entrepreneurs of the market Changpeng Zhao commented that Bitcoin is less volatile than Tesla and Apple shares. |
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| Support 1: 38,497.6 Support 2: 38,319.3 Support 3: 38,209.6 Resistance 1: 38,785.6 Resistance 2: 38,895.3 Resistance 3: 39,073.6 Pivot Point: 38,607.3 |
| The price is below the 200-day moving average, which is a bearish signal for Bitcoin. The price is between support 2 and resistance 1. Expected trading range between USD$38,209 and USD$39,073. Pivot point for trend change at USD$38,607. RSI neutral, so the price could correct some additional points. Bears are looking for USD$36,000. |
| WTI +0.79% |
| Analysts expect a 185,000-barrel decline in US crude inventories. Weekly crude oil reserves in the US increased by 4.7 million barrels, driven by the increase in local production, seeking to supply the European markets. Trafigura announced the closure of its operation in Russia by May 2022. Russia eliminated natural gas exports to Poland. The World Bank announced the continuity of high energy prices due to the war in Ukraine. |
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| Support 1: 102.16 Support 2: 101.64 Support 3: 101.37 Resistance 1: 102.95 Resistance 2: 103.22 Resistance 3: 103.74 Pivot Point: 102.43 |
| The price is at the same level of the 200-day moving average. Expected trading range between USD$101.37 and USD$103.74. Pivot Point for trend change at USD$102.43. RSI near the overbought zone, so the price could correct some points. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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