Daily Review for February 28, 2022
Global stock indexes start the week in negative territory. Mainly on Wall Street and in Europe. The market is attentive to the development of the negotiations between Ukraine and Russia.
Energy commodities rise, as a result of the market discounting a lower volume traded in the physical market, due to Russia’s restriction on the Swift code.
Bitcoin and Ethereum donations to the Ukrainian government continue to rise. For the time being, the crypto market starts the week in negative territory. Bitcoin is trading at USD$38,318.
The price of natural gas continues to rise. Russian physical traders seek to develop new markets with different means of payment.
| EUROSTOXX 50 -2.23% |
| The week begins, and the downward pressure returns to the markets, after the conflict between Ukraine and Russia continues. At this moment, European stock indexes and Wall Street are in negative territory. The EuroStoxx 50 is down 2.23% and is trading at 3,866 points. The European Union continued its sanctions against Russia, including the closure of air borders. The Russian stock exchange is currently closed. The Central Bank of Russia raised interest rates from 9.5% to 20% in order to boost the Ruble. |
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| Support 1: 3,828 Support 2: 3,796 Support 3: 3,771 Resistance 1: 3,885 Resistance 2: 3,910 Resistance 3: 3,942 Pivot Point: 3,853 |
| The index is at support 1, opening the day with a bearish gap. Expected trading range between 3,771 and 3,942. Pivot point for trend change at 3,853. RSI neutral. At the moment, the trend is bearish, with an important top at 3,874, which indicates a possible decline towards the next supports. |
| WTI +4.60% |
| The war in Ukraine continues, and commodity prices react. At the moment metals, grains and cereals and energy commodities are with bullish momentum. WTI is up 4.60% and is trading at USD$95.50 per barrel. Analysts project the price at USD$125 per barrel, if the conflict continues to escalate. The United States, the European Union, and other allies such as Japan and Singapore, have blocked transactions through Swift to Russia, which can be expected to decrease the volume of oil and other commodities business. Transactions in physical commodities are conducted using Swift. |
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| Support 1: 94.63 Support 2: 93.93 Support 3: 92.70 Resistance 1: 96.56 Resistance 2: 97.79 Resistance 3: 98.49 Pivot Point: 95.86 |
| The price is between resistance 1 and 2, where the Bulls are looking to generate the volume to reach USD$100 per barrel. Expected trading range between USD$92.70 and USD$98.49. Pivot point for trend change at USD$95.86. RSI neutral. |
| ETHEREUM -4.23% |
| Ukraine is accepting donations in Bitcoin and Ethereum. Donors are sending contributions to the Ethereum account of the Ukrainian government. Since February 24, the price of Ethereum rebounded to the resistance of USD$2,862. From this point, it started to correct until the current level of USD$2,624, where it could present a sideways movement, before the market continues to correct or change its trend. Bitcoin is down 1.26% and is trading at USD$38,350. |
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| Support 1: 2,605.59 Support 2: 2,576.73 Support 3: 2,554.45 Resistance 1: 2,656.73 Resistance 2: 2,679.01 Resistance 3: 2,707.87 Pivot Point: 2,627.87 |
| The price is slightly below the 200-day moving average. Expected trading range between USD$2,554 and USD$2,707. Pivot point for trend change at USD$2,627. RSI neutral. If the price changes trend, the short-term target is USD$3,000. Otherwise, the support to test is USD$2,376. |
| NATURAL GAS +3.45% |
| Natural Gas futures are rising, driven by the possible reduction in volume that may be generated in the market, after the restriction of some Russian banks to Swift code. Russian exporters and traders should be analyzing payment possibilities to continue exporting commodities. At the moment, the price of Natural Gas is up 3.45% and is trading at USD$4.62 per BTU. Brent is up 4.42% and is trading at USD$98.31 per barrel. Prices are expected to continue to rise. The market awaits the outcome of the talks between Ukraine and Russia to be held in Belarus. |
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| Support 1: 4.595 Support 2: 4.564 Support 3: 4.541 Resistance 1: 4.649 Resistance 2: 4.672 Resistance 3: 4.703 Pivot Point: 4.618 |
| The price is above the 200-day moving average. Expected trading range between USD$4.54 and USD$4.70. Pivot point for trend change at USD$4.70. RSI neutral. If the uptrend continues, the price could climb to USD$4.93 per BTU before reaching USD$5 per BTU. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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