Daily Review for July 18, 2022
Cases of coronavirus in China are once again on the rise, and the government has announced possible new confinements. This has been anticipated by the market, punishing the price of oil due to fears of a decrease in market demand.
Wall Street stock indexes are trading sideways, due to investors’ expectations regarding financial results. Today, Bank of America, IBM, Charles Schwab, Goldman Sachs, among others, presented their results.
The price reached USD$21,690 and started to correct towards the current level of USD$20,915. Bitcoin is currently down 0.88%. Bulls are looking to keep the price above USD$21,000.
The European markets are looking ahead to the European Central Bank’s interest rate decision, which will take place at the end of July 2022. In the meantime, stock indices are trading sideways.
| WTI -0.73% |
| Cases of coronavirus in China are once again on the rise, and the government has announced possible new confinements. This has been anticipated by the market, punishing the oil price due to a fear of a decrease in market demand. At the moment, WTI is correcting 0.73% and is trading at USD$94 per barrel. Traders are attentive to the restart or not of the Nordstream 1 operation. This week OPEC+ will be meeting, where they will define the production levels for Q3 and Q4 2022. |
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| Support 1: 92.58 Support 2: 92.08 Support 3: 91.27 Resistance 1: 93.89 Resistance 2: 94.70 Resistance 3: 95.20 Pivot Point: 93.39 |
| The price is below the 200-day moving average, between resistance 1 and support 3. Trading range expected between USD$91.27 and USD$95.20. RSI neutral, so the price could continue to correct towards support 3. Traders are starting to look for the level of USD$80 per barrel, due to the impact of the G7 price ceiling. |
| DOW JONES +0.07% |
| Wall Street stock indexes are trading sideways, due to investors’ expectations about financial results. Today, Bank of America, IBM, Charles Schwab, Goldman Sachs, among others, present their results. Banks have not started very well, so financial companies are not expected to outperform market expectations. At the moment the Dow Jones is up 0.07% and is trading at 31,312 points. The main topic on Wall Street is the Fed’s interest rate hike at the end of July. |
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| Support 1: 31243.0 Support 2: 31212.4 Support 3: 31160.4 Resistance 1: 31325.6 Resistance 2: 31377.6 Resistance 3: 31408.2 Pivot Point: 31295.0 |
| The price is above the 200-day moving average, between support 2 and resistance 1. Expected trading range between 31,160 and 31,408. Pivot point for trend change at 31,295. RSI in overbought zone, so traders could try to reach 31,484, to start taking profits. |
| BITCOIN -0.88% |
| The price reached USD$21,690 and started to correct towards the current level of USD$20,915. Bitcoin is currently down 0.88%. The Bulls are looking to keep the price above USD$21,000. Market Bulls are evaluating the price movement. If it rises above USD$22,376, Bitcoin could resume its uptrend. Otherwise, the price could start looking for the USD$18,751 support again. |
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| Support 1: 20745.5 Support 2: 20679.1 Support 3: 20595.3 Resistance 1: 2089595.8 Resistance 2: 20979.7 Resistance 3: 21046.1 Pivot Point: 20829.4 |
| The price is above the 200-day moving average, between support 1 and resistance 1. Expected trading range between USD$20,595 and USD$21,046. Pivot point for trend change at USD$20,829. RSI neutral, so there could be an additional profit taking, so the price could go down towards USD$20,428. |
| EUROSTOXX 50 +0.12% |
| The European markets are currently awaiting the European Central Bank’s interest rate decision, which will take place at the end of July 2022. In the meantime, stock indices are trading sideways. The Eurostoxx 50 is up 0.12% and is trading at 3,476 points. New Zealand inflation was reported at 1.7%, while the market was expecting 1.5%. On Tuesday we will have the Euro Zone inflation report, where 8.6% y/y is expected. If this level is exceeded, a market correction could occur. |
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| Support 1: 3470 Support 2: 3465 Support 3: 3460 Resistance 1: 3480 Resistance 2: 3485 Resistance 3: 3490 Pivot Point: 3475 |
| The price is right at the same level of the 200-day moving average, between resistance 1 and support 1. Expected trading range between 3,460 and 3,490. RSI neutral, so the price will try to consolidate above 3,483. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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