Daily review for December 20, 2021
Global markets fall sharply due to the increase of Omicron cases in Europe, which could force a generalized border closure.
Commodities fall significantly, mainly WTI and Brent, on the threat of border closures, which would affect physical trade.
The crypto market is also affected by Omicron. Holders are waiting for a turnaround by the end of the year. Hedge funds close speculative positions before holydays.
| DAX 40 -2.73% |
| Markets worldwide are starting the week in negative territory due to the increase in cases of the Omicron variant and possible lockdowns in Europe. At the moment the DAX 40 is down 2.73% and is trading at 15,116 points. With days to go before the end of the year, traders are starting to liquidate positions, in order to mitigate volatility risk. Most hedge funds will soon be in the holydays season, so today’s trading volume may influence the market trend. |
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| Support 1: 15,076.6 Support 2: 15,039.3 Support 3: 14,981.6 Resistance 1: 15,171.6 Resistance 2: 15,229.3 Resistance 3: 15,266.6 Pivot Point: 15,134.3 |
| Price is at support 3, where it marked a significant drop since reaching resistance 3. Expected trading range between 14,981 and 15,266. Pivot point for trend change at 15,134. RSI in oversold zone. |
| WTI -4.06% |
| Commodity prices are showing a significant drop due to the increase of Omicron cases globally. If there is a border closure, physical commodity trading would have a strong impact on a global scale. WTI is currently down 4.06%, and is trading at USD$67.98 per barrel. Brent is down 3.39% and is trading at USD$71.03 per barrel. On the other hand, the demand for energy continues to increase in Europe, so the price of Natural Gas is currently rising by 1.98%, trading at USD$3.76 per BTU. |
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| Support 1: 66.92 Support 2: 66.33 Support 3: 65.97 Resistance 1: 67.87 Resistance 2: 68.23 Resistance 3: 68.82 Pivot Point: 67.28 |
| The price is trying to bounce from support 3, however, the volume of sales continues to increase. Trading range between USD$65.97 and USD$68.82. Pivot point for trend change at USD$67.28. RSI leaving the oversold zone. |
| BITCOIN -2.27% |
| The price of Bitcoin continues to decline. It is currently down 2.27% and is trading at USD$46,055. The Omicron effect continues to impact the market. This time, it is generating a bearish momentum in cryptos. Microstrategy presented its business plan to its investors, where it highlighted a strategy focused on mortgages on Bitcoins. Likewise, the SEC continues to work on the regulation of the market. |
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| Support 1: 45,713.0 Support 2: 45,562.4 Support 3: 45,261.4 Resistance 1: 46,164.6 Resistance 2: 46,465.6 Resistance 3: 46,616.1 Pivot Point: 46,014.0 |
| The price is forming a double bottom in the area of support 1. Pivot point for trend change at USD$46,014. Expected trading range between USD$45,261 and USD$46,616. RSI neutral. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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