Daily review for December 16, 2021
The FED kept interest rates unchanged. The plan is a tapering of USD$30 billion per month and 3 rate hikes by 2022.
Traders are watching the ECB and BoE interest rate decision. Analysts expect the banks to leave rates unchanged. The market expects a market accommodative or Fed-integrated strategy.
The crypto market rebounds. Bitcoin is up 1%. Ethereum up 3.50%. Possible confirmation of year-end rally as long as prices break above the 200-day moving average.
Energy crisis continues in Europe. Energy commodity prices continue to rise.
| NASDAQ 100 +0.82% |
| Finally, the FED announced to accelerate tapering by USD$30 billion per month and three interest rate hikes by 2022. Initially it had contemplated USD$15 billion per month and two interest rate hikes. Following the announcement, stock markets rebounded, mainly equities. The Nasdaq 100 closed the day up 2.15%. The possible year-end market rally is mainly due to the fact that the Fed kept interest rates unchanged for the time being. |
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| Support 1: 16,362.0 Support 2: 16,344.7 Support 3: 16,335.4 Resistance 1: 16,388.6 Resistance 2: 16,397.9 Resistance 3: 16,415.2 Pivot Point: 16,371.3 |
| Major bounce of the index from the double bottom at 15,723. At the moment the price is at resistance 1. Expected trading range for today is between 16,335 and 16,415. Pivot point at 16,371. If volume continues, the price could reach 16,850 points. |
| DAX 40 +0.82% |
| Traders are watching the ECB interest rate decision. Analysts see a low probability of change. However, the market is watching Christine Lagarde’s statement on year-end comments on monetary policy and tapering for 2022. If the ECB also decides to raise rates 3 times by 2022, it would continue the Fed’s strategy. Traders are keeping an eye on this, as the ECB has so far focused its strategy on pro-market. At the moment the DAX 40 is up 0.82% and is trading at 16,415 points. |
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| Support 1: 16,362.0 Support 2: 16,344.7 Support 3: 16,335.4 Resistance 1: 16,388.6 Resistance 2: 16,397.9 Resistance 3: 16,415.2 Pivot Point: 16,371.3 |
| Expected trading range between 16.335 and 16.415. Pivot point for trend change at 16.371. RSI in overbought zone. The index bounced from the sideways zone at 15,490. Possible confirmation of the Christmas rally. Bulls are looking for 15,846 points. |
| ETHEREUM +4.07% |
| After the Fed’s announcement, the crypto market rebounded, marking a significant rise. At the moment Ethereum is up 4.07% and is trading at USD$4,023. After knowing about the interest rate decision, hedge funds initiated significant buying from support 1. To confirm the trend, the price should overpass the 200-day moving average. If so, the rally could extend until the end of 2021. |
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| Support 1: 3,994.21 Support 2: 3,969.86 Support 3: 3,957.68 Resistance 1: 4,030.74 Resistance 2: 4,042.92 Resistance 3: 4,067.27 Pivot Point: 4,006.39 |
| The price is near the 200-day moving average line. The RSI is neutral, approaching the overbought zone. The Bulls are looking to recover the bullish channel towards historical highs. If this is confirmed, the price could close the year above USD$5,000. |
| NATURAL GAS +2.97% |
| In the United States, the Oil & Gas industry is looking to invest USD$15 billion to modern and more environmentally efficient production processes. On the other hand, the energy crisis in Europe continues to escalate. Energy demand is growing due to a stronger than expected winter. Natural Gas is currently up 2.97% and is trading at USD$3.91 per BTU. On the other hand, Gazprom’s exports of the commodity to Europe have been reduced due to tensions between Ukraine and Russia. |
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| Support 1: 3.900 Support 2: 3.876 Support 3: 3.847 Resistance 1: 3.953 Resistance 2: 3.982 Resistance 3: 4.006 Pivot Point: 3.929 |
| The commodity is above the 200-day moving average. At the moment the price is between resistance 1 and 2. Trading range is between USD$3.84 and USD$4. If demand continues to increase, the price could reach USD$4.06 per BTU. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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