Daily Review for February 22, 2022
Russia accepted the independence of Donetsk and Luhansk regions. European stock indices and global stock exchanges turn negative.
Energy and metal commodity prices rise. Natural gas, WTI and Brent rise sharply on the possible scarcity effect that could occur after an armed conflict. Metals rise due to investors’ need to hedge portfolios from market volatility.
Cryptos correct due to their high correlation with equities. The current correlation between Bitcoin and the Nasdaq 100 is 0.66.
The gold price is looking for USD$1,930 per Troy ounce. Traders increase exposure in the metal, derived from the geo-political tensions.
| DAX 40 -3.68% |
| European stock indexes start the day with bearish movements derived from Russia’s announcement of accepting the independence of the Donetsk and Luhansk regions. The global stock exchanges are in negative territory, with the TecDAX falling by -4.24%. Russia’s RTS is down 0.41%. The DAX 40 is currently down 3.68%. Traders are watching for Putin’s next move. It is expected to be a volatile day, mainly because the New York Stock Exchange was closed yesterday, therefore, today’s volatility may be much higher. |
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| Support 1: 14,254.6 Support 2: 14,179.8 Support 3: 14,061.1 Resistance 1: 14,448.1 Resistance 2: 14,566.8 Resistance 3: 14,641.6 Pivot Point: 14,373.3 |
| The index is at support 1, where traders evaluate the market trading volume. At the moment the index is trying to bounce from this level. Expected trading range between 14,061 and 14,641. Pivot point for trend change at 14,373. RSI leaving the oversold zone. |
| WTI +4.66% |
| The WTI price is currently up 4.66% and is trading at USD$94.28 per barrel. Traders continue to pay close attention to geo-political movements today. Meanwhile, the US and the European Union have announced the imposition of financial sanctions on Russia, which will be announced later this afternoon. In the meantime, energy and metals futures are moving higher. In the scenario of an armed conflict, the Nordstream 1 and 2 project, which transports natural gas from Russia to the European Union, would be out of operation. It is because of the possible shortage effect that energy commodity prices are on the rise. |
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| Support 1: 93.23 Support 2: 92.87 Support 3: 92.66 Resistance 1: 93.80 Resistance 2: 94.01 Resistance 3: 94.37 Pivot Point: 93.44 |
| The price rebounded from support 2, and is currently at resistance 2, where a double top is forming at USD$94.79. If the Bulls break above this zone, the next target is USD$97.99 per barrel. Expected trading range between USD$92.66 and USD$94.37. Pivot point at USD$93.44. RSI in overbought zone. |
| BITCOIN -5.20% |
| The bear market in cryptos continues. Bitcoin is currently down 5.20% due to geo-political tensions. Investors have preferred metals over Bitcoin as a safe haven asset in the face of market volatility. Traders are evaluating the next support level. This could be at USD$34,231, and in the worst-case scenario at USD$30,000. In the last 24 hours, the liquidation of USD$400 million has been presented. |
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| Support 1: 36,647.0 Support 2: 36,413.5 Support 3: 36,221.0 Resistance 1: 37,073.0 Resistance 2: 37,265.5 Resistance 3: 37,499.0 Pivot Point: 36,839.5 |
| The price is at support 1, where a double bottom could form. The price is still below the 200-day moving average, which is a bearish signal for Bitcoin. Expected trading range between USD$36,221 and USD$37,499. Pivot point for trend change at USD$36,839. Neutral RSI coming out of the oversold zone. |
| GOLD -0.04% |
| Geo-political tensions are rising, and therefore, investors are increasing exposure to gold and silver as safe haven assets in times of high market volatility. Gold is currently down 0.04% and is trading at USD$1,899 per Troy ounce. Traders are watching the announcement of trade and financial sanctions against Russia. Gold could rise above USD$1,900 per Troy ounce in a conflict scenario. |
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| Support 1: 1,892.91 Support 2: 1,887.53 Support 3: 1,877.16 Resistance 1: 1,908.66 Resistance 2: 1,919.03 Resistance 3: 1,924.41 Pivot Point: 1,903.28 |
| Traders took profit at USD$1,900. At the moment the price is at the pivot point where a change of trend could occur. Expected trading range between USD$1,877 and USD$1,924. RSI neutral. Bulls target is at USD$1,932 per Troy ounce. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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