Daily review for January 20, 2022
Traders are looking ahead to the ECB monetary policy minutes. Euro Zone inflation data will be reported today. Analysts are expecting 5% y/y.
Traders are also watching the financial results of Netflix and American Airlines. Both companies have presented interesting performances during the pandemic.
The cryptos are trying to recover part of the correction of the last weeks. The Bulls are looking to consolidate the USD$43,000 area in order to climb towards USD$46,000. Institutions are not showing interest in Bitcoin at the moment.
Tension between Russia and Ukraine continues. Energy commodities correct a few points, but the rally continues.
| DAX 40 -0.08% |
| Traders are watching the minutes of the ECB’s latest monetary policy meeting. The bank is considering tapering due to the level of inflation in the Euro Zone. At the moment the DAX 40 is down 0.08% and is trading at 15,782 points. European stock indices are mixed. Tension in Europe continues due to Russia’s intention to invade Ukraine. Also, energy demand continues to increase. Metals are moving sideways. In addition, analysts are forecasting inflation in the Euro Zone at 5% per annum. |
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| Support 1: 15,791.1 Support 2: 15,774.8 Support 3: 15,743.6 Resistance 1: 15,838.6 Resistance 2: 15,869.8 Resistance 3: 15,886.1 Pivot Point: 15,822.3 |
| The index is below the 200-day moving average. Expected trading range between 15,743 and 15,886. Pivot point for trend change at 15,822. RSI neutral. Price is between resistance 1 and the pivot point. Possible trend change. |
| NASDAQ 100 +0.39% |
| The index of technology companies is trading higher, up 0.39% and trading at 15,103 points. Traders are watching the financial results of Netflix and American Airlines, as well as the technical support between 14,800 and 15,150. Analysts are expecting a possible market rebound after a week of corrections. Wall Street indices are in positive territory, looking to recover yesterday’s losses. Treasury yields are at pre-pandemic levels, so investor interest may shift to equities. |
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| Support 1: 15,124.1 Support 2: 15,109.0 Support 3: 15,083.2 Resistance 1: 15,165.0 Resistance 2: 15,190.8 Resistance 3: 15,205.9 Pivot Point: 15,149.9 |
| The index is trying to stop the correction from the 61.8% retracement. The price is below the 200-day moving average. Trading range between 15,083 and 15,205. Pivot point for trend change at 15,149. RSI neutral. Possible trend confirmation. |
| BITCOIN +1.29% |
| Bitcoin concentrated fund, Grayscale, is down nearly 30%, following the crypto correction. Bitcoin is currently up 1.29% and is trading at USD$41,909. Now traders are evaluating the level to buy the crypto, as a possible safe haven asset against inflation. Traders are looking to recover the floor of USD$42,000. Sideways movement, while the fight between buyers and sellers continues. At the moment, the market is waiting for the ECB minutes. |
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| Support 1: 41,977.4 Support 2: 41,871.8 Support 3: 41,779.0 Resistance 1: 42,175.8 Resistance 2: 42,268.6 Resistance 3: 42,374.2 Pivot Point: 42,070.2 |
| The price is below the 200-day moving average. Sideways movement between the pivot point and resistance 1. Expected trading range between USD$41,779 and USD$42,374. Pivot point at USD$42,070. RSI neutral. The Bulls are looking to regain USD$44,000 in order to climb towards USD$46,000. |
| WTI -0.73% |
| Traders are watching the U.S. crude oil inventories report. The market is expecting a possible reduction of 938,000 barrels. At the moment, WTI is down 0.73% and is trading at USD$85.13 per barrel. Commodities in the energy segment corrected a few points, but maintained the upward trend. Traders are paying attention to the tensions between Russia and Ukraine. Brent crude oil is down 1% and is trading at USD$87.56 per barrel. Natural Gas is correcting 0.94% and is trading at USD$3.99 per BTU. |
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| Support 1: 85.15 Support 2: 84.95 Support 3: 84.64 Resistance 1: 85.66 Resistance 2: 85.97 Resistance 3: 86.17 Pivot Point: 85.46 |
| Correction between the pivot point zone and support 1. However, the energy market rally continues. Expected trading range between USD$84.64 and USD$86.17. Pivot point at USD$85.46. RSI neutral. Short-term target remains at USD$87.98 per barrel. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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