Daily review for December 17, 2021
Bank of Japan left interest rates unchanged. Inflation in Europe met analysts’ forecasts and came in at 4.9%. Markets are mixed at the moment.
Investors start buying metals in order to seek safe haven investments due to the volatility that may occur. Cryptos are looking for hedging space. Traders wait for the possible entry of whales in the market.
The energy market in Europe continues to rise. Despite this, traders take profits in Natural Gas, WTI and Brent.
| DOW JONES -0.05% |
| The Bank of Japan kept interest rates unchanged at -0.10% and stated that it will start cutting financial aid to large companies; however, it will maintain them for SMEs. In this way, it continues with the Fed’s strategy of initiating tapering on a larger scale. The Dow Jones is currently down 0.05% and is trading at 35,756 points. Traders are awaiting for a formation of a possible Christmas rally. |
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| Support 1: 35,850.0 Support 2: 35,782.1 Support 3: 35,738.7 Resistance 1: 35,961.3 Resistance 2: 36,004.7 Resistance 3: 36,072.6 Pivot Point: 35,893.4 |
| The index is above the 200-day moving average. Investors’ took profit at 36,066, so the index is declining towards support 1. Pivot point for trend change at 35,893. |
| GOLD +0.58% |
| Traders are watching the market’s reaction to inflation in the Euro Zone. It came in at 4.9%, meeting analysts’ estimates. Now, the market is waiting for Wall Street trading volume, which may mark the beginning of the holiday period for hedge funds, and the possible formation of the Christmas rally. Gold is currently up 0.58% and is trading at USD$1,808 per Troy ounce. |
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| Support 1: 1,806.15 Support 2: 1,804.90 Support 3: 1,802.60 Resistance 1: 1,809.70 Resistance 2: 1,812.00 Resistance 3: 1,813.25 Pivot Point: 1,808.45 |
| Important bounce from support 3. Formation of the bullish channel towards resistance 2. Expected trading range between USD$1,802.60 and USD$1,813.25. Pivot point at USD$1,808.45. RSI in overbought zone. |
| BITCOIN -3.94% |
| Traders are taking profits after yesterday’s rebound in cryptocurrencies. Bitcoin is currently down -3.94% and is trading at USD$46,999. The market is watching for the possible entry of the whales. If so, the crypto market could bounce back to all-time highs. Traders are also watching the volume on Wall Street, which could set the uptrend, as many funds consider Bitcoin as a safe haven asset from inflation. |
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| Support 1: 47,082.8 Support 2: 46,899.9 Support 3: 46,788.8 Resistance 1: 47,376.8 Resistance 2: 47,487.9 Resistance 3: 47,670.8 Pivot Point: 47,193.9 |
| Price is at a triple bottom at support 2. Expected trading range between USD$46,899 and USD$47,670. Pivot point for trend change at USD$47,193. RSI approaching the oversold zone. |
| NATURAL GAS -2.55% |
| The price of natural gas is currently falling 2.55% and is trading at USD$3.67 per BTU. Energy demand continues to rise in Europe. Traders are keeping an eye on early winter temperatures. If the winter is stronger than expected, energy commodity prices could reach historic levels. WTI is down 1.84% and Brent is down 1.73%. |
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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 price of Natural Gas dropped to support 2, after reaching the USD$4 per BTU area. Expected trading range between USD$3.84 and USD$4. Pivot point for trend change at USD$3.92. RSI in oversold zone. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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