Daily Review for May 06, 2022
Global markets in the red. Panic after central banks interest rate hike.
After a sharp drop on Wall Street and global stock markets due to the Fed’s interest rate hike, traders are watching the Non-Farm Payrolls (NFP) today.
Europe continues to buy natural gas from the U.S. and Norway at a premium to secure its needs.
Bitcoin fell below USD$37,000. Today traders are watching the NFP and the impact of the expiration of USD$700 million in Bitcoin options.
Nasdaq 100 closed yesterday with a 4.65% drop generated by investors’ panic about a more aggressive FED. The US central bank maintains its strategic focus on lowering inflation towards the 2% annual maximum.
| GOLD -0.10% |
| After a sharp drop on Wall Street and global stock markets due to the Fed’s interest rate hike, traders are looking ahead to today’s Non-Farm Payrolls (NFP) report. Analysts expect the creation of at least 391,000 new non-farm jobs and a 3.5% monthly unemployment rate by April 2022. Buying positions in gold and silver continue, due to economic uncertainty. Gold is currently trading at USD$1,873 and silver at USD$22.36 per Troy ounce. |
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| Support 1: 1,872.69 Support 2: 1,871.09 Support 3: 1,868.43 Resistance 1: 1,876.95 Resistance 2: 1,879.61 Resistance 3: 1,881.21 Pivot Point: 1,875.35 |
| Price is below the 200-day moving average, between resistance 1 and support 1. Expected trading range between USD$1,868 and USD$1,881. Pivot point for trend change at USD$1,875. RSI neutral, so profit taking by traders could continue until the next support. |
| NATURAL GAS -0.17% |
| The port of Libya returned to operation after declaring force majeure. Europe, for its part, continues to buy the commodity from the United States and Norway at a premium to guarantee its needs. Finland, meanwhile, began to show evidence of Russian gas supply cuts as the country decides to join NATO. On the other hand, Germany is making progress in the construction of an LNG import terminal. In the US, O&G companies report the best cash flow levels since 2014. |
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| Support 1: 8.759 Support 2: 8.733 Support 3: 8.705 Resistance 1: 8.813 Resistance 2: 8.841 Resistance 3: 8.867 Pivot Point: 8.787 |
| The price is above the 200-day moving average, near resistance 1. Expected trading range between USD$8.70 and USD$8.86. Pivot point for trend change at USD$8.78. RSI neutral, so traders’ profit taking could continue. In the meantime, the price could remain sideways. Bulls are looking for the level of USD$10 per BTU. |
| BITCOIN -7.96% |
| Bitcoin fell below USD$37,000. Today, traders are watching the NFP and the impact of the expiration of USD$700 million in Bitcoin options. If the NFP beats market expectations, Wall Street is likely to rebound and recover some of yesterday’s decline. The Fed’s rate hike generates an increase in investors’ cost of capital, thus, the demand for capital decreases. On the other hand, the California Government proposed a regulatory framework for cryptocurrencies in order to attract the development of the industry in the state. |
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| Support 1: 36,382.6 Support 2: 36,327.1 Support 3: 36,232.9 Resistance 1: 36,532.3 Resistance 2: 36,626.5 Resistance 3: 36,682.0 Pivot Point: 36,476.8 |
| Important fall of the price. It is below the 200-day moving average, which is a bearish signal for the crypto. The price rebounded a few points after descending to support 3 at USD$35,529. Expected trading range between USD$36,232 and USD$36,682. Pivot point at USD$36,476. RSI in oversold zone, so the price could continue climbing a few points before defining a trend depending on the NFP report. |
| NASDAQ 100 -0.66% |
| The index closed yesterday with a 4.65% drop generated by investors’ panic about a more aggressive FED. The US central bank maintains its strategic focus on lowering inflation towards the 2% annual maximum. However, the cost of this has dragged down Wall Street’s gains of the past two years. Traders are watching the NFP today. If it beats market expectations, it could signal a rebound in the stock markets. In the meantime, all markets except Japan are in negative territory. |
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| Support 1: 12,810.6 Support 2: 12,793.3 Support 3: 12,758.8 Resistance 1: 12,862.4 Resistance 2: 12,896.9 Resistance 3: 12,914.2 Pivot Point: 12,845.1 |
| Significant decline towards the 12,790-point zone. Price is below the 200-day moving average. Expected trading range between 12,758 and 12,914. Pivot point for trend change at 12,845. RSI in oversold zone. Traders are watching the NFP, which can increase or decrease the fall in the market. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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