Daily Review for March 3, 2022
Commodity prices in the energy segment continue to rise. WTI trades at USD$113.82 per barrel. Brent is trading at USD$116.27. Natural Gas is at USD$4.86 per BTU.
Metals resume the upward trend, as stock indexes turn negative. Gold seeks to consolidate above USD$1,929 per Troy ounce. Silver is trading at USD$25.26 per Troy ounce.
The U.S. seeks to impose sanctions on Russia over Bitcoin and Ethereum use. Cryptos started to correct after the announcement. Bitcoin is trading at USD$43,279.
Russia and Ukraine account for 29% of Wheat exports, and 17% in the global corn market. As a result, agricultural commodities in these categories have rallied sharply since the war began. Wheat is up 7.09%.
| WTI +3.95% |
| Russia’s oil production increased 0.2% in February compared to January 2022. However, it is below the OPEC+ agreement by 130,000 barrels. In the United States, crude oil inventories decreased by 2.5 million barrels. Previous data evidences the reduction in global supply. Meanwhile, demand for crude oil continues to increase, mainly due to the winter in Europe and the Northern Hemisphere. At this moment the price of WTI is up 3.95% and is trading at USD$114.90 per barrel. Brent is trading at USD$117.51. Physical traders are trying to sell as much volume as possible in the spot market. |
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| Support 1: 114.80 Support 2: 113.59 Support 3: 112.74 Resistance 1: 116.86 Resistance 2: 117.71 Resistance 3: 118.92 Pivot Point: 115.65 |
| The price remains in the bullish channel. It is currently at resistance 2. It is also above the 200-day moving average. The next target for the Bulls is at USD$121.45 per barrel. Expected trading range between USD$112.74 and USD$118.92. Pivot point for trend change at USD$115.65. |
| GOLD +0.61% |
| Traders are looking forward to the minutes of the ECB monetary policy meeting, which could provide more clarity on the bank’s stance on the economy at a time of high inflation and conflict in Ukraine. On the other hand, Jerome Powell, as chairman of the FED, announced that the bank maintains its position on interest rate hikes. Meanwhile, global stock indices remain mixed, with main falls in India’s NIFTY -1.51% and IBEX35 -0.88% and main rises in Brazil’s iBovespa +2.23% and South Korea’s Kospi 200 +1.91%. The price of gold is up 0.61% and is trading at USD$1,933 per Troy ounce. |
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| Support 1: 1,929.59 Support 2: 1,924.82 Support 3: 1,922.34 Resistance 1: 1,936.84 Resistance 2: 1,939.32 Resistance 3: 1,944.09 Pivot Point: 1,932.07 |
| The price is between the pivot point and resistance 1. If the upward momentum continues, the price would face resistance at USD$1,945. If it manages to overcome this level, the next target is at USD$1,971. Expected trading range between USD$1,922 and USD$1,944. Pivot point for trend change at USD$1,932. RSI neutral. |
| BITCOIN -1.15% |
| President Biden announced sanctions on Russia with Bitcoin and Ethereum. In this regard, Bitcoin stopped the 16% rally, and started to trend sideways. At the moment the price is down 1.15% and is trading at USD$43,371. However, volumeon crypto trading continues to increase. On the other hand, the Mexican government announced that it wants to add Bitcoin as legal currency. In addition, the company Citadel started to evaluate its participation in the crypto market. |
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| Support 1: 43,322.0 Support 2: 43,166.0 Support 3: 43,000.0 Resistance 1: 43,644.0 Resistance 2: 43,810.0 Resistance 3: 43,966.0 Pivot Point: 43,488.0 |
| The price is at support 1. However, it remains above the 200-day moving average. If the correction increases, support 3, also remains above the moving average, which could indicate that the uptrend will continue. Expected trading range between USD$43,000 and USD$43,966. RSI neutral. |
| WHEAT +7.09% |
| The conflict in Ukraine continues to escalate, and the war is expected to reach its most acute moment due to the arrival of more Russian troops in major cities in Ukraine. In terms of agricultural commodities, Ukraine and Russia are two major players in global wheat market, accounting for 14% of global production. They also account for 29% of wheat exports, and 17% in the corn market. Based on the above data, wheat and corn prices are on the rise. Wheat is currently up 7.09% and is trading at USD$1,134 per bushel. |
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| Support 1: 1,131.64 Support 2: 1,129.17 Support 3: 1,127.94 Resistance 1: 1,135.34 Resistance 2: 1,136.57 Resistance 3: 1,139.04 Pivot Point: 1,132.87 |
| The price is at the same level of the highest Bollinger band. Expected trading range between USD$1,127 and USD$1,139. Pivot point for trend change at USD$1,132. Neutral RSI near the overbought zone, so the price could climb additional positions. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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