Daily review for December 10, 2021
The market is awaiting inflation data in the United States. Analysts project it at 6.8% annually. Metals give up a few points as traders wait before taking positions.
Bitcoin corrects. The crypto market presents bearish movement derived from the meeting between the SEC and the CEOs of the industry. The market is looking for a new pro-market regulatory framework for cryptos.
Traders are also keeping an eye on Germany inflation. It is expected to be 5.2% y/y. Christine Lagarde will present the ECB’s position on the current state of the economy.
Natural Gas is trading higher. Several moves and synergies are presented globally in expansion projects. The focus is on demand for Q1 2022.
| GOLD -0.20% |
| Traders are watching the U.S. inflation data. Analysts expect a CPI of 6.8%. If the figure is higher than expected, this could lead to bullish movements in metals. At the moment, the price of gold is down 0.20% and is trading at USD$1,773 per Troy ounce. Investors will be very focused on the inflation data, which could define the market trend at the end of the year. Depending on this variable, the FED will make decisions on tapering, and could accelerate the interest rate hike. |
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| Support 1: 1,771.10 Support 2: 1,768.25 Support 3: 1,764.95 Resistance 1: 1,777.25 Resistance 2: 1,780.55 Resistance 3: 1,783.40 Pivot Point: 1,774.40 |
| The price is at a double bottom at support 1. If the Bulls manage to change the trend, the rebound could go towards USD$1,783 per Troy ounce. RSI neutral, approaching the oversold zone. Trading range between USD$1,764 and USD$1,783. |
| BITCOIN -3.23% |
| The main players in the crypto market communicated to the SEC that the industry cannot be regulated by the current regulatory framework. The main purpose of the meetings held during the course of the week is to initiate the first chapters of a regulation aimed at improving the market, but not restricting it. At the moment the price of Bitcoin is down 3.23% and is trading at USD$47,910. On the other hand, fund manager Cathie Wood reported that Ethereum is undervalued. Traders are watching the market rebound, as well as the expiration of Bitcoin options. |
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| Support 1: 47,720.6 Support 2: 47,525.4 Support 3: 47,155.9 Resistance 1: 48,285.4 Resistance 2: 48,655.0 Resistance 3: 48,850.2 Pivot Point: 48,090.2 |
| The price is below the 200-day moving average. At the moment, it is at support 1, where an important floor is located. If the bears break above this zone, the next support point would be USD$43,006. On the other hand, if the Bulls change the trend, the price could reach USD$53,573. |
| DAX 40 -0.56% |
| Traders are also keeping an eye on Germany’s inflation, which is expected to come in at 5.2% annually. After the economic framework data, we will have the statements of Christine Lagarde as ECB President. For the time being, the ECB has distanced itself from the Fed’s strategy, so more details are expected on the bank’s action plan regarding the current state of the economy. On the other hand, in Europe, tensions continue between Ukraine and Russia. Russia’s position remains unchanged. The U.S. continues to express its support for Ukraine. |
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| Support 1: 15,556.6 Support 2: 15,548.8 Support 3: 15,544.6 Resistance 1: 15,568.6 Resistance 2: 15,572.8 Resistance 3: 15,580.6 Pivot Point: 15,560.8 |
| The indices in Europe are in negative territory. The DAX 40 is at the support line 1. The advantage is that it remains above the 200-day moving average. Trading range between 15,544 and 15,580. Pivot point for trend change at 15,560. RSI in oversold zone. |
| NATURAL GAS +1.13% |
| The main producers and traders at a global level, continue to be long in Natural Gas. The commodity is currently up 1.13% and is trading at USD$3.86 per BTU. Synergies in expansion projects continue ahead of Q1 2022 demand. Egypt and Cyprus are seeking an alliance to increase production capacity and exploration of their natural gas deposits. On the other hand, traders are keeping an eye on inflation in the United States, which does not have a direct impact on commodities, but can define the trend and appetite of investors for fixed income or equities. |
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| Support 1: 3.837 Support 2: 3.807 Support 3: 3.789 Resistance 1: 3.885 Resistance 2: 3.903 Resistance 3: 3.933 Pivot Point: 3.855 |
| Possible triple top formation at USD$3.91. If the Bulls manage to overcome this zone, the price would have a clear path to climb to USD$4.09. Trading range between USD$3.78 and USD$3.93. Pivot point at USD$3.85. RSI neutral. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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