Daily Review for July 21, 2022
After Netflix exceeded market expectations, the Nasdaq 100 confirmed the upward trend, reaching 12,500 points.
Traders are looking forward to the European Central Bank’s interest rate decision. The market expects the first rate hike this year by the institution to be 0.25%.
The European Union is taking measures to deal with the impact on Russian natural gas supplies. Among them is an effort to reduce domestic consumption by 15%.
The price of gold continues to correct, this time close to losing the level of USD$1,700 per Troy ounce. The price is currently down 0.54%.
| NASDAQ 100 +1.89% |
| After Netflix exceeded market expectations, the Nasdaq 100 confirmed the uptrend, reaching 12,500 points. Traders are now looking forward to Tesla’s corporate results, where the company is expected to report earnings per share of at least USD$1.86 and operating income of USD$16.52 billion. The Nasdaq 100 is currently up 1.89%. Tesla’s results for Q2 2022, may have been impacted by inflation, declining demand in the US, and by the fall in the price of Bitcoin. |
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| Support 1: 12452.41 Support 2: 12410.33 Support 3: 12382.91 Resistance 1: 12521.91 Resistance 2: 12549.33 Resistance 3: 12591.41 Pivot Point: 12479.83 |
| Price is above the 200-day moving average, between resistance 2 and support 1. Expected trading range between 12,382 and 12,591. Pivot point for trend change at 12,479. RSI in overbought zone, so we could see selling volumes in anticipation of the European Central Bank rate hike. |
| EUROSTOXX 50 -0.22% |
| Traders are watching the European Central Bank’s interest rate decision. The market expects the first rate hike this year by the institution to be 0.25%. Inflation was reported at 8.6% year-over-year, maintaining market expectations. Analysts are beginning to evaluate a possible inflation ceiling or peak, at which point the variable would begin to decline. Similarly, the rise in interest rates will generate high volatility in the fixed income and equity markets. The Eurostoxx 50 is currently down 0.22%. |
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| Support 1: 3576 Support 2: 3567 Support 3: 3562 Resistance 1: 3590 Resistance 2: 3595 Resistance 3: 3604 Pivot Point: 3581 |
| The price is above the 200-day moving average, between resistance 2 and support 1. Expected trading range between 3,562 and 3,604. Pivot point for trend change at 3,581. RSI in overbought zone, so the price could continue correcting towards the line of the exponential moving average. |
| NATURAL GAS +3.01% |
| The European Union is taking measures to deal with the impact on Russian natural gas supplies. Among them is an effort to reduce domestic consumption by 15%. Nord Stream 1 has started gas supplies again, but at a lower volume than usual. Putin announced that cuts to European customers may continue even to the point of stopping supplies completely. At the moment the Nasdaq 100 is up 3.01% and is trading at USD$7.49 per BTU. |
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| Support 1: 7.383 Support 2: 7.347 Support 3: 7.289 Resistance 1: 7.477 Resistance 2: 7.535 Resistance 3: 7.571 Pivot Point: 7.441 |
| Price is above the 200-day moving average, between support 1 and resistance 3. Expected trading range between USD$7.28 and USD$7.57. Pivot point for trend change at USD$7.44. RSI neutral, near the overbought zone, so the price could climb to resistance 3 before starting to give up some points. |
| GOLD -0.54% |
| The price of gold continues to correct, this time close to losing the level of USD$1,700 per Troy ounce. At the moment the price is down 0.54%. The equity market is in its fourth day of gains. However, a correction is expected ahead of the ECB’s first rate hike of the year. If this happens, gold could have a chance to recover some ground. For the moment, investors are betting on a recovery in the equity market. |
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| Support 1: 1697.85 Support 2: 1695.05 Support 3: 1690.90 Resistance 1: 1704.80 Resistance 2: 1708.95 Resistance 3: 1711.75 Pivot Point: 1702.00 |
| Price is below the 200-day moving average, between resistance 1 and support 2. Expected trading range between USD$1,690 and USD$1,711. Pivot point for trend change at USD$1,702. RSI neutral, so the price may continue correcting towards USD$1,697. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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