Daily Review for February 24, 2022
Russia launches attack in Ukraine. Equities correct strongly. Global stock indexes are in negative territory. Commodities rise, mainly on the energy segment. Traders and investors take hedge positions in gold and silver.
WTI is close to USD$100 per barrel. As it escalates into a full-blown conflict, a rise towards USD$130 per barrel or higher would be expected. Natural Gas is up over 6% at the moment. Traders are targeting USD$5.50 per BTU. Gold price is approaching USD$2,000 per Troy ounce. Silver is up 2.52%.
Bitcoin and cryptos suffer with market volatility. Bitcoin meanwhile falls more than 8% at the moment. Ethereum is down 11.89%. Euro Bunds are up 0.77% at the moment.
| WTI +6.12% |
| The price of crude oil reached USD$97.74 per barrel after Russia started the military operation against Ukraine. Brent is currently up 5.90% and is trading at USD$99.60 per barrel. In the United States, weekly crude oil stocks increased by 5.9 million barrels, which shows the high level of local production, boosted by exports to Europe. Direct sanctions on the Russian energy market are expected. If so, energy commodity prices could show high rallies as a result of Russia being one of the major global players. |
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| Support 1: 96.49 Support 2: 95.73 Support 3: 94.77 Resistance 1: 98.21 Resistance 2: 99.17 Resistance 3: 99.93 Pivot Point: 97.45 |
| The price reached USD$98.70 per barrel. It is currently at resistance 3. The price remains above the 200-day moving average. Possible breakout towards USD$100 per barrel. Pivot point for trend change at USD$97.45. RSI in overbought zone. |
| NATURAL GAS +6.53% |
| The price of Natural Gas is rebounding 6.53% in the wake of Russia’s attack on Ukraine. The commodity is currently trading at USD$4.89 per BTU. The price is expected to reach USD$5 per BTU at any time. The sanctions imposed on Russia included Nord Stream 2, which is being developed by commodity trader Gazprom. Russia is one of the major global energy players, so analysts expect further rebound in commodity prices due to Russia’s restrictions on the sale of oil, natural gas, coal and derivatives on the international market. |
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| Support 1: 4.844 Support 2: 4.805 Support 3: 4.779 Resistance 1: 4.909 Resistance 2: 4.935 Resistance 3: 4.974 Pivot Point: 4.870 |
| The price is above the 200-day moving average. Expected trading range between USD$4.77 and USD$4.97 per BTU. Bullish trend. RSI in overbought zone. Pivot point for trend change at USD$4.87. Possible rebound towards USD$5.61 per BTU. |
| DAX 40 -3.15% |
| Global stock indexes are showing high volatility due to Russia’s attack on Ukraine. The DAX 40 is currently down 3.15% and is trading at 14,169 points. Russia’s RTS fell 32% at the European open. Wall Street indices are also falling sharply. A negative trading day is expected, as more geo-political tension is expected. All the focus is on the market reaction of NATO’s support for Ukraine. |
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| Support 1: 13,940.5 Support 2: 13,780.5 Support 3: 13,668.0 Resistance 1: 14,213.0 Resistance 2: 14,325.5 Resistance 3: 14,485.5 Pivot Point: 14,053.0 |
| The price is trying to bounce from support 3 at 13,934. At the moment the index is at support 2. The price remains below the 200-day moving average. Expected trading range between 13,668 and 14,485. Pivot point for trend change at 14,053. RSI leaving the oversold zone. |
| GOLD +1.89% |
| Investors continue to hedge portfolios. This time, gold and silver continue to be the traditional safe haven assets of choice. At the moment, the price of gold is up 1.89% and is trading at USD$1,946 per Troy ounce. Silver is up 2.48% and is trading at USD$25.16 per Troy ounce. Further upward movement is expected as equities continue to be punished due to the conflict between Russia and Ukraine. The Bulls’ target is at USD$2,000 per Troy ounce. |
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| Support 1: 1,942.56 Support 2: 1,938.13 Support 3: 1,935.31 Resistance 1: 1,949.81 Resistance 2: 1,952.63 Resistance 3: 1,957.06 Pivot Point: 1,945.38 |
| The price is above the 200-day moving average. Gold is overcoming resistance 3, which could lead to an upward movement towards USD$2.009 per Troy ounce. Expected trading range between USD$1,935 and USD$1,957. Pivot point at USD$1,945. RSI in overbought zone. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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