Daily review for December 14, 2021
The pressure on the global equity market is increasing, due to the surge in cases of the Omicron variant and the Central Banks’ tapering announcements.
Cryptos continue to correct. Bitcoin falls 4%. Traders wait for the USD$40,000 support to start buying again.
OPEC raises demand outlook for 2022 by 200,000 barrels per day. Platts, sees a balance between supply and demand.
Possible Nasdaq 100 rebound driven by demand for Apple shares. Analysts expect the company to reach USD$3 Trillion in Market Cap.
| GOLD -0.02% |
| The debt ceiling is once again the main topic of discussion in the U.S. Senate. The figure of interest is USD$28.9 trillion, which should be approved so that the country does not default on its debt payments. Traders are watching the Senate’s decision. At the moment, the equity market is coming from an important correction derived from the increase of Omicron variant cases globally. At the moment, the price of gold is down 0.02% and is trading at USD$1,787 per Troy ounce. Stock futures remain mixed. |
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| Support 1: 1,787.74 Support 2: 1,786.87 Support 3: 1,786.24 Resistance 1: 1,789.24 Resistance 2: 1,789.87 Resistance 3: 1,790.74 Pivot Point: 1,788.37 |
| Price bounced from support 3 to the actual level which is between resistance 1 and the pivot point. A double top was formed at USD$1,791 where the Bulls gave up the rally. If equities continue with bearish pressure, a continuation of the gold trend is expected. Pivot point for trend change at USD$1,788. RSI neutral. |
| BITCOIN -4.49% |
| Traders are watching the Fed’s monetary policy decision. Analysts expect two interest rate hikes by 2022. At the moment Bitcoin is down 4.49% and is trading at USD$46,711. Traders are waiting for the best support level to re-enter the market. Hedge funds know that this is possibly the last week of the year to profit from volatility before the market flattens out. Therefore, they are waiting for support levels of USD$40,000 to initiate buying. The change in trend depends on the Fed and central banks’ stance on monetary policy, interest rates and inflation. |
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| Support 1: 46,445.6 Support 2: 46,164.3 Support 3: 45,932.6 Resistance 1: 46,958.6 Resistance 2: 47,190.3 Resistance 3: 47,471.6 Pivot Point: 46,677.3 |
| The price is below the 200-day moving average. Bitcoin is between support 1 and the pivot point. Bulls, expect a drop close to USD$40,186 support, before starting buying. RSI leaving the oversold zone. Pivot point at USD$46,677. |
| WTI +0.29% |
| Commodity traders are keeping an eye on the IEA monthly report. In the United States, the average production of oil wells has increased 81% since 2019. On the other hand, OPEC has raised its demand forecast for 2022 by 200,000 barrels per day. Also, according to Platts, supply will match the level of demand in 2022. In the European Union, Germany has stated that it may suspend Nord Stream, if Russia invade Ukraine. At the moment, WTI is up 0.29% and is trading at USD$71.46 per barrel. |
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| Support 1: 71.03 Support 2: 70.70 Support 3: 70.48 Resistance 1: 71.58 Resistance 2: 71.80 Resistance 3: 72.13 Pivot Point: 71.25 |
| The price is above the 200-day moving average. Double bottom at USD$70.26. Double top at USD$73.21. Therefore, the trading range is expected between USD$70.48 and USD$72.13. Pivot point at USD$71.25. RSI neutral. |
| NASDAQ 100 +0.29% |
| The index of technology companies in the United States is currently up 0.29% and is trading at 16,125. Traders are keeping an eye on Apple’s share price, a company whose market cap could reach USD$3 trillion. At the moment, all eyes are on the FED. We are waiting for concrete data from the bank and information on interest rates hike. Traders know that the focus of central banks is on tapering economic stimulus to control inflation. However, the Omicron variant is causing doubts and divided opinions on the best momentum to start tapering. |
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| Support 1: 16,099.1 Support 2: 16,082.4 Support 3: 16,072.3 Resistance 1: 16,125.9 Resistance 2: 16,136.0 Resistance 3: 16,152.7 Pivot Point: 16,109.2 |
| Index is at support 1. Possible bounce from this level towards resistance 2. Pivot point for trend change at 16,109. Neutral RSI coming out of the oversold zone. Possible increase in trading volume, before hedge funds enter holidays period. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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