Daily Review for March 1, 2022
The crypto market continues to rally. Bitcoin rises 13.36% and trades at USD$43,566. Ethereum is up 10.66% and is trading at USD$2,908.
The current correlation between Bitcoin and the S&P500 is at 0.6. Higher crypto trading volume is expected due to sanctions on Russia.
European stock indices are correcting. Traders are looking forward to Christine Lagarde’s statement as ECB President.
Brent crude oil is trading above USD$100 per barrel. In the physical market, China is expected to replace EU demand for Russian oil.
Analysts project the price of gold at USD$2,000 per Troy ounce, driven by traders’ need to hedge portfolio volatility.
| BITCOIN +13.36% |
| Cryptos continue to rise amid speculation that cryptocurrencies will become more widely used due to economic sanctions against Russia. On the other hand, donations to Ukraine in Bitcoin and other cryptos have reached USD$37 million. The correlation between Bitcoin and the S&P500 has increased in the Ukraine crisis. This currently stands at 0.6. That is, if the S&P500 rises 1%, the Bitcoin rises 0.6% and vice versa. At the moment the Bitcoin price is up 13.36% and is trading at USD$43,566. |
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| Support 1: 43,352.6 Support 2: 43,201.3 Support 3: 43,083.1 Resistance 1: 43,622.1 Resistance 2: 43,740.3 Resistance 3: 43,891.6 Pivot Point: 43,470.8 |
| The price is approaching resistance 2, where buying volume could be evaluated. If traders do not take profits, the price could climb towards USD$47,754. Expected trading range between USD$43,083 and USD$43,891. Pivot point for trend change at USD$43,470. RSI in overbought zone. |
| DAX 40 -1.72% |
| Traders are looking forward to the statements of Christine Lagarde, as ECB President, where she is expected to make announcements related to the timing of tapering and interest rate hikes. Analysts expect the rate hike to be postponed due to the conflict in Ukraine, so the economic stimulus package could be maintained, or even modified and adapted to the current economic environment. At the moment, European indices are in negative territory. The DAX 40, is correcting 1.72% and is trading at 14,295 points. |
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| Support 1: 14,352.9 Support 2: 14,313.7 Support 3: 14,255.9 Resistance 1: 14,449.9 Resistance 2: 14,507.7 Resistance 3: 14,546.9 Pivot Point: 14,410.7 |
| The price is between resistance 1 and the pivot point. Traders are on the lookout for a possible change in trend or increased selling volume. The main support to watch is at 13,811 points. Expected trading range between 14,255 and 14,546. Pivot point for trend change at 14,410. RSI neutral. |
| BRENT +3.41% |
| The price of Brent surpassed USD$100 per barrel. At the moment it is up 3.41% and is trading at USD$101.15 per barrel. The main uncertainty for traders is what will happen to the percentage of Russian exports to the European Union. There is speculation that China could buy this percentage of production in addition to the 2 million barrels per day it currently buys from Russia. Russia’s daily exports are 6.5 million barrels. WTI is close to USD$100 per barrel. It is currently up 3.08% and is trading at USD$98.69 per barrel. |
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| Support 1: 99.37 Support 2: 99.11 Support 3: 98.76 Resistance 1: 99.98 Resistance 2: 100.33 Resistance 3: 100.59 Pivot Point: 99.72 |
| The price is at resistance 1, where more buying volume is expected to consolidate the price at USD$104.91 per barrel. Trading range expected between USD$98.76 and USD$100.59. Pivot point for trend change at USD$99.71. RSI neutral. |
| GOLD +0.89% |
| The equity market has been highly volatile following the conflict in Ukraine. Due to this, traders have maintained positions in metals, mainly gold and silver, as traditional safe haven assets in the face of high volatility in the market. At the moment the price is up 0.89% and is trading at USD$1,917 per Troy ounce. Analysts expect a rebound towards USD$2,000 per Troy ounce. Silver is up 1.01% and is trading at USD$24.60 per Troy ounce. |
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| Support 1: 1,910.30 Support 2: 1,906.00 Support 3: 1,903.00 Resistance 1: 1,917.60 Resistance 2: 1,920.60 Resistance 3: 1,924.90 Pivot Point: 1,913.30 |
| The price is at resistance 1, where traders are looking to overcome the level of USD$1,921 to reach USD$1,949 per Troy ounce. Expected trading range between USD$1,903 and USD$1,924. Pivot point for trend change at USD$1,913. RSI neutral, approaching the overbought zone. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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