Daily Review for July 11, 2022
Non-farm payrolls beat market expectations. In June, 372,000 new non-farm jobs were created in the United States, which kept the country’s unemployment rate stable at 3.6%.
Gasoline prices are falling significantly in the United States. The current average price per gallon in the country is USD$4.72. The price drop is due to the correction in oil and natural gas prices, due to the fear of a global economic recession.
Bitcoin manages to stay above USD$21,000, which represents the best gains in 3 months.
Oil prices managed to stay above USD$100 per barrel. Fears of a global economic recession generated a generalized correction of commodities in all segments.
| DOW JONES -0.03% |
| Non-farm payrolls beat market expectations. In June, 372,000 new non-farm jobs were created in the United States, which kept the country’s unemployment rate stable at 3.6%. As a result, analysts expect a positive trading day on Wall Street. The Dow Jones closed Friday sideways, giving up 0.03%, and trading at 31,376 points. The market is attentive to the appointment of the Prime Minister in the United Kingdom, and to the statements of the President of the Bank of England. |
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| Support 1: 31,275.5 Support 2: 31,216.2 Support 3: 31,109.0 Resistance 1: 31,442.0 Resistance 2: 31,549.2 Resistance 3: 31,608.5 Pivot Point: 31,382.7 |
| The price is above the 200-day moving average, between resistance 1 and support 1. Expected trading range between 31,109 and 31,608. Pivot point for trend change at 31,382. RSI neutral, so the price could have a bullish day, driven by the good employment data in the US. Bulls target is at 31,859 points. |
| NATURAL GAS -3.65% |
| Gasoline prices are dropping significantly in the United States. The current average price per gallon in the country is USD$4.72. The price drop is due to the correction in oil and natural gas prices, due to the fear of a global economic recession. Due to the sanctions on the economic sector in Russia, Putin announced a great supply shock and a rise in prices that may be generated in the market on a global scale. Norway increased its natural gas production levels to supply the European Union. In Houston, a gas pipeline exploded, which is causing supply delays. |
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| Support 1: 6.019 Support 2: 5.988 Support 3: 5.958 Resistance 1: 6.080 Resistance 2: 6.110 Resistance 3: 6.141 Pivot Point: 6.049 |
| The price is above the 200-day moving average, between support 1 and resistance 1. Expected trading range between USD$5.95 and USD$6.14. Pivot point for trend change at USD$6.04. RSI neutral, so the price could continue to correct towards the level of USD$5.5 per BTU. However, the supply shock in Russia, and the logistic problems in Houston, could make the price bounce again towards USD$7 per BTU. |
| BITCOIN -2.78% |
| Bitcoin manages to stay above USD$21,000, which represents the best gains in 3 months. Bloomberg analyst Mike McGlone maintains his position that Bitcoin could present one of the biggest bull markets in Q3 and Q4 of 2022. On the other hand, new hardware technologies have allowed to reduce energy consumption by 14% in Bitcoin mining. The price starts the week with a correction of 2.78% and is trading at USD$21,085. According to Microstrategy’s CEO, Bitcoin is a digital commodity, like gold in cyberspace. |
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| Support 1: 20,871.4 Support 2: 20,762.7 Support 3: 20,693.4 Resistance 1: 21,049.4 Resistance 2: 21,118.7 Resistance 3: 21,227.4 Pivot Point: 20,940.7 |
| The price is above the 200-day moving average, between support 2 and resistance 1. Expected trading range between USD$20,693 and USD$21,227. Pivot point for trend change at USD$20,940. RSI neutral, so the price could correct towards support 2 before bouncing looking to climb towards USD$22,000. |
| WTI +2.01% |
| The price of oil managed to remain above USD$100 per barrel. Fears of a global economic recession generated a generalized correction in commodities of all segments, due to the impact on market demand generated by this situation in the market. However, the market supply shock that continues to occur due to the war in Ukraine continues to push prices upwards. On the other hand, OPEC+ is still 2.5 million barrels below the production target. |
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| Support 1: 104.40 Support 2: 104.22 Support 3: 103.92 Resistance 1: 104.88 Resistance 2: 105.18 Resistance 3: 105.36 Pivot Point: 104.70 |
| The price is below the 200-day moving average, between resistance 1 and support 1. Expected trading range between USD$103.92 and USD$105.36. Pivot point for trend change at USD$104.70. RSI near the overbought zone, so traders could begin to take profit at this level, which from the support of USD$95, means a gain of 10%. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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