Daily Review for January 27, 2022
The Fed held interest rates steady. However, it announced that a rate hike will soon be forthcoming. Analysts expect this to come at the March 2022 meeting.
Cryptos correct again. The IMF recommended to El Salvador to abandon Bitcoin as a legal currency. Volatility in the market increases. Bitcoin has lost 50% of its value in three months.
Natural Gas futures continue to rise. Traders are watching the U.S. stockpiles report. The US continues to be the world’s largest LNG exporter.
WTI price is close to USD$90 per barrel. Traders are watching Russia’s response to the US statement.
| NASDAQ 100 -0.72% |
| Jerome Powell as FED Chairman, announced an early interest rate hike. He did not announce a specific date; however, analysts estimate that it will be at the March 2022 meeting. This generated doubts in the market. At this moment the stock market indexes of the global stock exchanges remain mixed. The Nasdaq 100 is down 0.72%. Traders are watching the US quarterly GDP data for Q4 2021, where a 5.5% is expected. Today, Apple presents its financial results. Tesla exceeded market expectations. |
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| Support 1: 13,943.8 Support 2: 13,896.7 Support 3: 13,852.2 Resistance 1: 14,035.4 Resistance 2: 14,079.9 Resistance 3: 14,127.0 Pivot Point: 13,988.3 |
| The index is below the 200-day moving average. The price is bouncing from support 1, where it is expected to reach the pivot point level at 13,988 to change the trend. Expected trading range between 13,852 and 14,127. RSI neutral. |
| BITCOIN -3.90% |
| The IMF recommended El Salvador to withdraw Bitcoin as legal tender. The volatility of crypto sets off the alarms of financial organizations. In less than three months, crypto has lost 50% of its value. Bitcoin is currently down 3.90% and is trading at USD$36,158. Cryptos have been presenting a similar performance to stocks and stock indexes, i.e., they have presented a high exposure to monetary policy decisions. At one point, it was believed that Bitcoin could be a safe haven asset against inflation, however, in recent months this correlation has been broken. |
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| Support 1: 36,060.6 Support 2: 35,881.3 Support 3: 35,741.6 Resistance 1: 36,379.6 Resistance 2: 36,519.3 Resistance 3: 36,698.6 Pivot Point: 36,200.3 |
| The price is below the 200-day moving average, which is a bearish signal for Bitcoin. Expected trading range between USD$35,741 and USD$36,698. Pivot point for trend change at USD$36,200. RSI neutral. Bulls are trying to recover the bullish channel. |
| NATURAL GAS +0.97% |
| Traders are watching the report on Natural Gas reserves in the United States. It is expected to decrease by 216 Billion BTU, mainly due to the increase of LNG exports to Europe. At the moment the price of the commodity is up 0.97% and is trading at USD$4.09 per BTU. The market is attentive to geopolitical movements. The United States delivered its response to Russia’s concerns. Russia’s response is expected in the next few days. |
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| Support 1: 4.026 Support 2: 3.969 Support 3: 3.896 Resistance 1: 4.156 Resistance 2: 4.229 Resistance 3: 4.286 Pivot Point: 4.099 |
| The price is at a double top at resistance 1. Traders are looking to maintain the uptrend. Expected trading range between USD$3.89 and USD$4.28. Pivot point for trend change at USD$4.09. RSI neutral. Bullish trend. |
| WTI -0.24% |
| WTI price drops a few points after reaching USD$88 per barrel. At this moment, the price is dropping 0.24% and is trading at USD$87.11 per barrel. For its part, the United States released 13.4 million barrels from its strategic reserves in order to balance prices. Saudi Arabia is seeking to increase prices for March delivery, taking advantage of the increase in market demand. Traders follow geopolitical movements, which can generate high volatility in commodities. |
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| Support 1: 86.71 Support 2: 86.44 Support 3: 86.22 Resistance 1: 87.20 Resistance 2: 87.42 Resistance 3: 87.69 Pivot Point: 86.93 |
| The price is above the 200-day moving average. Double top at USD$87.93. The price gives up some points, but the uptrend continues. Expected trading range between USD$86.22 and USD$87.69. Pivot point for trend change at USD$86.93 per barrel. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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