Daily review for December 06, 2021
The crypto market continues to be under pressure. Bitcoin is currently down 2.85%. Ethereum trades above USD$4,031. In December 8, 2021, the SEC will discuss regulation with top industry CEO`s.
Natural Gas falls more than 8%. The latest weather forecasts point to a warmer than expected winter. Traders find themselves oversupplied.
European indices bounce due to the ECB monetary policy. WHO continues to evaluate the impact of the Omicron variant and the functionality of current vaccines.
WTI seeks USD$70 per barrel. OPEC+ seeks to increase production by 400,000 barrels per day from January 2022.
| BITCOIN -2.85% |
| The crypto market continues the week with significant downward pressure. Bitcoin is currently down 2.85% and is trading at USD$48,051. Analysts continue to evaluate whether Bitcoin can be a better inflation hedging instrument than metals. Traders are evaluating the best buying level. Bulls, know, that they have managed to survive the 84.5% drop, then the 63% drop in March 2020 and the 53% drop in May 2021. At the moment, they are trying to defend the USD$50,000 zone. The downward pressure continues due to Omicron. |
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| Support 1: 47,945.1 Support 2: 47,703.6 Support 3: 47,289.7 Resistance 1: 48,600.5 Resistance 2: 49,014.4 Resistance 3: 49,255.9 Pivot Point: 48,359.0 |
| Sideways movement between USD$49,540 and USD$48,187. The price has dropped sharply from USD$57,309 to USD$41,648. The price is below the 200-day moving average which is a bearish signal for Bitcoin. RSI is neutral, so bears still have room to sell. The main support for the moment is at USD$44,871. |
| NATURAL GAS -8.13% |
| The price of Natural Gas is currently falling 8.13% due to more favorable weather projections than expected. Weather forecasts are more favorable for the winter in the United States and Europe. Producers and traders had accumulated significant inventory, betting on a rebound in demand due to a strong winter. However, the winter could be warmer, which would generate lower market demand and oversupply, which would continue to put downward pressure on prices. With the current downturn, the margin accounts of long natural gas futures traders are at margin call. Among them, the desks of Glencore, Gunvor, Trafigura and Vitol. |
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| Support 1: 3.835 Support 2: 3.830 Support 3: 3.820 Resistance 1: 3.850 Resistance 2: 3.860 Resistance 3: 3.865 Pivot Point: 3.845 |
| Declining channel. The price is below the 200-day moving average. At the moment the price is at the support 3. RSI near the oversold zone. Expected trading range between USD$3.82 and USD$3.86. Bearish pressure. Pivot point at USD$3.845. |
| DAX 40 +1.26% |
| European stock index futures are in positive territory, boosted by the ECB’s monetary policy measures. At the moment the IBEX35 is up 1.41%. The DAX 40 is up 1.26% and is trading at 15,297. Traders are trying to move away from support levels, mainly because of the volatility derived from Omicron. The OMS continue to assess the impact of the variant. Traders are looking for the Christmas rally however. Traders are also watching the Asian markets for the impact of the Evergrande default and Wall Street for the low NFP result. |
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| Support 1: 15,259.1 Support 2: 15,226.3 Support 3: 15,197.1 Resistance 1: 15,321.1 Resistance 2: 15,350.3 Resistance 3: 15,383.1 Pivot Point: 15,288.3 |
| The index continues below the 200-day moving average. It is currently at resistance 1. Trading range between 15,197 and 15,383. Pivot point for trend change at 15,288. RSI neutral. |
| WTI +2.46% |
| OPEC+ continues with an accommodative strategy in the face of market behavior. The organization plans to increase production by 400,000 barrels per day from January 2022. At the moment, the price of WTI is up 2.46% and is trading at USD$67.84 per barrel. Brent is up 2.28% and is trading at USD$71.48 per barrel. Traders continue to watch the results of the analysis on the Omicron variant and on the weather behavior. OPEC+ is betting on an increase in demand by 2022. However, the fall in the price of Natural Gas could signal oversupply. |
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| Support 1: 67.65 Support 2: 67.44 Support 3: 67.24 Resistance 1: 68.06 Resistance 2: 68.26 Resistance 3: 68.47 Pivot Point: 67.85 |
| The price continues below the 200-day moving average. Sideways movement above resistance 1. Trading range between USD$67.24 and USD$68.47. Pivot point at USD$67.85. RSI neutral. Bulls continue to look for the level of USD$70 per barrel. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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