Daily review for December 13, 2021
Traders increase bullish positions in Natural Gas as weather forecasts change again to a stronger than expected winter.
WTI and Brent rise as traders await OPEC’s monthly report. Analysts expect to revise demand forecasts and production plan for 2022.
Bitcoin continues to move sideways. However, companies such as Microstrategy are increasing their long positions in the crypto. In addition, Bitcoin mining has reached 90% of available production. This could generate a rebound in the price, taking into account that there is a maximum possible production level.
Stock futures start the week with mixed movements, but more inclined towards positive territory. Traders are paying close attention to global central bank statements. Inflation and the strategy to mitigate it is the focus of concentration.
| NATURAL GAS +2.78% |
| The price of Natural Gas is again approaching the USD$4 per BTU zone. Prices have fallen 40% since the peak in October 2021. However, the commodity is in a recovery phase as weather forecasts turn from warmer to a colder winter again. The next two weeks are key as they mark the beginning of winter in the Northern Hemisphere. At the moment the price of Natural Gas is up 2.78% and is trading at USD$3.98 per BTU. Traders have started again with long positions from the support of USD$3.67 per BTU. |
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| Support 1: 3.958 Support 2: 3.950 Support 3: 3.935 Resistance 1: 3.981 Resistance 2: 3.996 Resistance 3: 4.004 Pivot Point: 3.973 |
| The price is currently at resistance 1, where it is close to breaking the 200-day moving average line. If the upward momentum continues, the next target level for the Bulls is USD$4.17 per BTU. RSI neutral, approaching the overbought zone. Pivot point at USD$3.97 per BTU. |
| WTI +1.03% |
| Traders are looking forward to OPEC’s monthly report. The report is expected to include demand projections and the supply increase program. Business continues to increase globally. Saudi Arabia will concentrate its crude oil exports in the Asian market. Traders are starting to be long again in anticipation of a colder than expected winter. WTI is currently up 1.03% and is trading at USD$72.58 per barrel. On the other hand, geopolitical risk continues, as tensions between the G7 and Russia increase. |
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| Support 1: 72.68 Support 2: 72.43 Support 3: 72.30 Resistance 1: 73.06 Resistance 2: 73.19 Resistance 3: 73.44 Pivot Point: 72.81 |
| Price is above the 200-day moving average. It is currently at resistance 2, where a double top was formed. RSI neutral, near the overbought zone. Bulls are marking the target levels as we approach the winter. Main target is USD$80 per barrel. |
| BITCOIN -0.87% |
| Bitcoin returns to October 2021 levels. Hedge funds, concentrated in Cryptos, remain long. Bitcoin mining on the other hand, has reached 90% of the total supply. In fundamental events, BBVA bank, incorporated Ether in its crypto custody and trading portfolio. Microstrategy, on the other hand, increased its long position and today is the company with the largest amount of Bitcoins globally. The company has a total of 122,478 Bitcoins. The next company with the largest number of Bitcoins is Tesla with 38,300. |
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| Support 1: 48,916.9 Support 2: 48,772.7 Support 3: 48,559.4 Resistance 1: 49,274.4 Resistance 2: 49,487.7 Resistance 3: 49,631.9 Pivot Point: 49,130.2 |
| Price is between resistance 1 and the pivot point. It is close to the 200-day moving average, which is a key point that defines the trend. The Bulls will seek to keep the price above this, in order to evidence bullish movements to close the year above the USD$50,000 line. RSI neutral. |
| DAX 40 +0.17% |
| Stock futures start the week in positive territory. Investors are looking forward to the monetary policy statements that will be presented throughout the week. Traders are looking ahead to the ECB today. They are also looking forward to the German BUBA statement. The market is focused on the analysis of central banks globally, as these are the last statements before the end of 2021. The focus of analysis is the inflationary level and the measures to mitigate this effect. Tapering continues with an eye on Q1 2022. The DAX 40 is currently up 0.17% and is trading at 15,644. |
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| Support 1: 15,635.6 Support 2: 15,613.3 Support 3: 15,580.6 Resistance 1: 15,690.6 Resistance 2: 15,723.3 Resistance 3: 15,745.6 Pivot Point: 15,668.3 |
| The index remains above the 200-day moving average. Expected trading range between 15,580 and 15,745. Pivot point for trend change at 15,668. RSI neutral, so traders with long positions could have trend continuity. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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