Daily review for December 15, 2021
The market is aware of the Fed’s interest rate decision. Analysts see a low probability of change. However, the main interest is in the tapering strategy, considering Omicron.
The WHO continues to evaluate Omicron. According to the organization, the variant is more contagious but less dangerous than Delta.
Cryptos are trying to rebound after a couple of weeks in red. Some hedge funds have started buying cryptos before the end of the year.
Traders are aware of inflation in the Euro Zone, and retail sales in the United States.
| GOLD -0.02% |
| Traders are aware of the Fed’s interest rate decision. The probability of a rate change is low. The benchmark interest rate is expected to close the year at 0.25%. However, the main point of interest is the progress of tapering. Purchases of fixed income instruments have declined month by month since the start of the measure. By 2022, the market expects a two-fold increase in interest rates. At the moment, gold is sideways waiting for more volume. Today is a crucial day, because the final year market trend could be generated. |
 |
| Support 1: 1,766.95 Support 2: 1,765.80 Support 3: 1,764.20 Resistance 1: 1,769.70 Resistance 2: 1,771.30 Resistance 3: 1,772.45 Pivot Point: 1,768.55 |
| The price of the metal is at support 1. Possible buying level at this level, depending on the performance of the stock indexes. Expected trading range between USD$1,764 and USD$1,772. Pivot point at USD$1,768. RSI approaching oversold zone. |
| NASDAQ 100 +0.25% |
| The market is awaiting Jerome Powell’s statement as Fed Chairman. A speech oriented towards the economic plan and outlook for 2022 is expected. For the time being, the market continues to wait for the possible impact of Omicron. According to WHO, the variant is more contagious but less serious than Delta. However, governments are evaluating the defense of the current vaccines in the population. The Nasdaq 100, meanwhile, has performed well during the pandemic, so the index continues to be on the radar of hedge funds. Likewise, the correlation between the index and cryptos is high, so, depending on what the FED says, it could confirm the trend for the end of the year for both markets. |
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| Support 1: 15,904.9 Support 2: 15,886.8 Support 3: 15,857.3 Resistance 1: 15,952.5 Resistance 2: 15,982.0 Resistance 3: 16,000.1 Pivot Point: 15,934.4 |
| The index is at the pivot point, which could lead to a change in trend. At the moment, the index is up 0.25%. Expected trading range between 15,857 and 16,000 points. Pivot point at 15,934. RSI neutral. |
| BITCOIN +2.67% |
| The crypto market is trying to rebound after a couple of weeks in the red. Several hedge funds, including Three Arrows capital, have bought at the dippest points of the fall. The company has bought USD$84 million in Ethereum. At the moment Bitcoin is up 2.67% and is trading at USD$48,191. Ethereum is up 1.50% and is trading at USD$3,875. Traders know that the market trend can be confirmed or corrected depending on the Fed’s statements. For the time being, investors have opted to include metals in portfolios in the face of inflation. |
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| Support 1: 47,981.7 Support 2: 47,876.9 Support 3: 47,696.8 Resistance 1: 48,266.6 Resistance 2: 48,446.7 Resistance 3: 48,551.5 Pivot Point: 48,161.8 |
| The price is at the level of resistance 1. The Bulls are looking for USD$50,000 again. For this, the support at USD$46,813 should hold and the price should break above the 200-day moving average. RSI approaching the overbought zone. |
| DAX 40 +0.03% |
| European markets are mixed, with the FTSE 100 falling – 1.15% and the SMI – 1.75%. Traders are keeping an eye on Wall Street and the Fed, however, also on inflation in the UK, France, Spain and Italy. Also the level of reserve assets in the Euro Zone. This presents the economic balance of the European bloc against the level of financial stress. At the moment the DAX 40 is up 0.03% and is trading at 15,514. It is practically the last days of interesting volatility, so the hedge funds are watching for the last strategic moves of the year. |
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| Support 1: 15,456.5 Support 2: 15,421.0 Support 3: 15,393.0 Resistance 1: 15,520.0 Resistance 2: 15,548.0 Resistance 3: 15,583.5 Pivot Point: 15,484.5 |
| The index is just below the 200-day moving average. It is currently between the pivot point and support 1. Expected trading range between 15,393 and 15,583. Pivot point for trend change at 15,484. RSI neutral. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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