Daily Review for February 25, 2022
Wall Street starts the day with the stock indexes correcting part of the rally that occurred at the close of yesterday’s trading. European stock indexes are moving higher. Traders are looking forward to the Eurogroup meeting. They are also looking forward to Christine Lagarde’s statements. It is expected that the withdrawal of economic stimulus will be postponed given the conditions of the conflict and the economic impact on the Euro Zone. Russia’s RTS rises 24%.
WTI remains in the USD$93 per barrel area. OPEC’s position is to maintain the strategy of increasing production on a monthly basis. Physical traders try to sell as much volume in the spot market.
Bitcoin bounces 8% and seeks to regain the USD$40,000 zone. Holders of the crypto in Russia increase. Traders’ trading range is between USD$44,000 and USD$30,000.
| NASDAQ 100 -1.38% |
| The conflict between Ukraine and Russia continues. For the moment there is no direct intervention from other countries. Meanwhile, the United States, Europe, Australia, the United Kingdom and Japan have imposed economic sanctions on Russia. Investors bought the technology index from the level of 13,136 points, with an eye on the good performance of technology stocks as central banks delay rate hikes. For the time being, monetary policy is focused on maintaining economic stimulus in times of conflict in Europe, which could generate a global economic tailspin. |
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| Support 1: 13,820.3 Support 2: 13,780.1 Support 3: 13,744.5 Resistance 1: 13,896.1 Resistance 2: 13,931.7 Resistance 3: 13,971.9 Pivot Point: 13,855.9 |
| The price rebounded towards 13,982, where it started to show a sideways movement. The price is below the 200-day moving average. Expected trading range between 13,744 and 13,971. Pivot point for trend change at 13,855 points. RSI neutral, leaving the overbought zone. |
| EUROSTOXX 50 +0.43% |
| European indices start the day with bullish movement. Traders are looking forward to the Eurogroup meeting and the statements of Christine Lagarde as ECB President. Analysts expect the bank to announce a delay in rate hikes and the withdrawal of economic stimulus, mainly due to the conflict between Ukraine and Russia. The economic outlook is focused on supporting the market recovery. The Eurostoxx 50 is currently up 0.43% and is trading at 3,841 points. Russia’s RTS is up 24% at the moment. |
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| Support 1: 3,847 Support 2: 3,825 Support 3: 3,799 Resistance 1: 3,895 Resistance 2: 3,921 Resistance 3: 3,943 Pivot Point: 3,873 |
| The price rebounded from 3,741 to the 3,902 level. From this point the price has descended towards the pivot point, where a change of trend could occur. The price remains below the 200-day moving average. Expected trading range between 3,799 and 3,943. RSI neutral. |
| WTI +1.27% |
| After the price rebounded close to USD$100 per barrel, OPEC announced that it is not interested in changing its strategy of monthly production increases. For the time being, the sanctions imposed on Russia have not included commodity exports. European importers, for their part, continue to seek to replace 100% of their oil and natural gas needs from Russia. Analysts estimate that the sanctions will not include Russia’s energy exports, as the country is one of the world’s main players in this segment, so that sanctions could have an impact on the global market. |
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| Support 1: 94.30 Support 2: 93.89 Support 3: 93.40 Resistance 1: 95.20 Resistance 2: 95.69 Resistance 3: 96.10 Pivot Point: 94.79 |
| The price reached USD$100 per barrel. From this point, traders took profits. The price is currently above the 200-day moving average, and is looking for the sideways line above the pivot point. From this level, a change of trend could occur. RSI neutral. |
| BITCOIN +7.75% |
| Bitcoin is rebounding after days of significant declines. The price is currently up 7.75% and is trading at USD$38,340. Bulls are looking for USD$40,000. Traders are assessing the impact of the conflict in Ukraine on the crypto price. Hedge funds and large investors have bought from support at USD$34,205. Analysts expect volatility over the weekend, driven by the conflict. Bullish positions of Russian Bitcoin holders increase. |
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| Support 1: 38,243.4 Support 2: 38,070.7 Support 3: 37,914.4 Resistance 1: 38,572.4 Resistance 2: 38,728.7 Resistance 3: 38,901.4 Pivot Point: 38,399.7 |
| The price is near the 200-day moving average, which is a bullish signal for Bitcoin. At the moment, the price is looking to consolidate at resistance 1, in order to gain more volume and reach the path towards USD$44,000. Traders, however, revise the USD$30,000 support as a floor. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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