Daily Review for January 28, 2022
Wall Street indexes are looking to rebound and overcome the losses generated during the week. Analysts expect 4 interest rate hikes this year.
The crypto market is trying to bounce back, boosted by purchases of Microstrategy and El Salvador. The IMF continues to warn about the volatility of cryptocurrencies.
European stock indices are in negative territory at the moment. Traders are keeping an eye on Germany’s GDP.
After the recovery of the European market, metals are correcting. Gold declined from USD$1,853 to the current level of USD$1,792. Traders continue aware of geopolitical tensions.
| DOW JONES +0.35% |
| Wall Street stock indexes are still unable to recover from the Fed’s announcements. Analysts estimate 4 interest rate hikes this year. When rates rise, there are short-term corrections for equities as the cost of money rises. At the moment the Dow Jones is up 0.35% and is trading at 34,253 points. The S&P500 is up 0.37% and the Nasdaq 100 is up 0.86%. Traders continue to keep an eye on geopolitical tensions. |
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| Support 1: 34,265.7 Support 2: 34,215.0 Support 3: 34,169.6 Resistance 1: 34,361.8 Resistance 2: 34,407.2 Resistance 3: 34,457.9 Pivot Point: 34,311.1 |
| The index is below the 200-day moving average, just at the pivot point level, so a change of trend could occur. Expected trading range between 34,169 and 34,457. Pivot point for trend change at 34,311. RSI neutral. |
| BITCOIN +0.61% |
| Traders have managed to keep the Bitcoin price close to the USD$37,000 resistance. At the moment the crypto price is up 0.61% and is trading at USD$36,648. The IMF warns El Salvador again about Bitcoin volatility. Meanwhile the country continues to buy more volume. The same is being done by Microstrategy. The company is the largest holder of Bitcoins in the world. Cryptocurrencies are expected to move over the weekend. For their part, traders are evaluating the supports and waiting for the interest of the institutions. |
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| Support 1: 36,698.4 Support 2: 36,585.7 Support 3: 36,371.4 Resistance 1: 37,025.4 Resistance 2: 37,239.7 Resistance 3: 37,352.4 Pivot Point: 36,912.7 |
| The price is slightly below the 200-day moving average. Expected trading range between USD$36,371 and USD$37,352. Pivot point for trend change at USD$36,912. RSI neutral. Bulls are looking to break above the trend line for price to reach USD$38,000. |
| DAX 40 -1.05% |
| European stock indices have recovered from the week’s decline. Traders are paying attention to Germany’s GDP today. A 1.8% increase is expected for Q4 2021. At the moment, the DAX 40 is down 1.05% and is trading at 15,321 points. Traders are also keeping an eye on developments in the diplomatic negotiations between Russia and Ukraine. Tensions are likely to increase, which could increase the volatility of the equity market. |
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| Support 1: 15,407.6 Support 2: 15,381.8 Support 3: 15,354.6 Resistance 1: 15,460.6 Resistance 2: 15,487.8 Resistance 3: 15,513.6 Pivot Point: 15,434.8 |
| The price is at the pivot point, which could lead to a change of trend. Bullish channel evidenced at the two support points of 14,903 and 15,036. If the index changes trend, the next target level is 15,760 points. RSI neutral. Pivot point at 15,434. |
| GOLD -0.04% |
| The price of gold has presented an important correction from the resistance level of USD$1,853. At the moment, the price is down 0.04% and is trading at USD$1,793. The recovery of equities, generated the sell-off in metals. For the time being, the market continues to be attentive to geopolitical tensions and macroeconomic data in Europe. Tapering remains on the central banks’ agenda. Interest rate hikes in Europe and the United States are expected from March onwards. |
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| Support 1: 1,793.90 Support 2: 1,793.00 Support 3: 1,791.55 Resistance 1: 1,796.25 Resistance 2: 1,797.70 Resistance 3: 1,798.60 Pivot Point: 1,795.35 |
| The price is at a double bottom at USD$1,793. If the sell-off continues, the next support level is USD$1,755. Expected trading range between USD$1,791 and USD$1,798. Pivot point for trend change at USD$1,795. RSI in oversold zone. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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