Daily Review for May 16, 2022
The week begins and financial markets are in negative territory, mainly due to investors’ nerves about the economic future.
The cryptocurrency market starts the week in negative territory. Investors continue to be nervous due to the collapse of Terra Luna, the crypto that lost 100% of its value in one week.
The Chinese government warned NATO not to interfere in Asia. The State of California announced the investment of USD$5.2 Billion in electricity reserves to avoid blackouts.
According to the former CEO of Goldman Sachs, Lloyd Blankfein, there is a very high-risk factor for the United States to enter into an economic recession.
| EUROSTOXX 50 -0.81% |
| As the week begins, financial markets are in negative territory, mainly due to investors’ nervousness about the future of the economy. Pablo Fernandez, a member of the board of the European Central Bank, commented that the ECB could soon raise interest rates and thus put an end to its stimulus plan. The Eurostoxx 50 is currently down 0.81% and is trading at 3,666 points. Inflation in the Euro Zone reached 7.5% p.a. in April 2022. |
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| Support 1: 3,668 Support 2: 3,663 Support 3: 3,660 Resistance 1: 3,676 Resistance 2: 3,679 Resistance 3: 3,684 Pivot Point: 3,671 |
| The price is slightly below the 200-day moving average, between support 2 and resistance 2. Expected trading range between 3,660 and 3,684. Pivot point between 3,660 and 3,684. Neutral RSI leaving the overbought zone, so the correction could continue towards support 2. |
| BITCOIN -1.81% |
| The cryptocurrency market starts the week in negative territory. Investors continue to be nervous due to the collapse of Terra Luna, the crypto that lost 100% of its value in one week. Bitcoin’s fear and greed index is in the extreme fear area. For the time being, traders continue to digest the fall of Terra Luna. Apple, on the other hand, is analyzing starting sales of its products by accepting payments through cryptocurrencies. The airline Emirates is also considering accepting Bitcoin as a means of payment. Bitcoin is currently down 1.81% and is trading at USD$29,351. |
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| Support 1: 29,186.0 Support 2: 28,830.0 Support 3: 28,286.0 Resistance 1: 30,086.0 Resistance 2: 30,630.0 Resistance 3: 30,986.0 Pivot Point: 29,730.0 |
| The price is below the 200-day moving average, which is a bearish signal for Bitcoin. Price is between support 1 and resistance 1. Pivot point for trend change at USD$29,730. RSI neutral, so the correction could reach support 1. |
| WTI -0.71% |
| The Chinese government warned NATO not to interfere in Asia. The State of California announced the investment of USD$5.2 billion in electricity reserves to avoid blackouts. On the other hand, the European Union announced that it could complete sanctions on Russian oil in May. At the moment, WTI is correcting 0.71% and is trading at USD$109.98 per barrel. Brent crude oil is down 0.85% and is trading at USD110.68 per barrel. Traders are watching Finland’s announcements and its accession to NATO, which could generate more volatility in the energy markets. |
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| Support 1: 107.06 Support 2: 106.56 Support 3: 106.26 Resistance 1: 107.86 Resistance 2: 108.16 Resistance 3: 108.66 Pivot Point: 107.36 |
| The price is above the 200-day moving average. Expected trading range between USD$106.26 and USD$108.66. Pivot point for trend change at USD$107.36. RSI neutral, so the price could correct some additional points before changing trend. |
| NASDAQ 100 -0.77% |
| According to former Goldman Sachs CEO Lloyd Blankfein, there is a very high-risk factor for the U.S. to enter an economic recession. He also announced that the Fed has no choice but to continue raising interest rates. Fed Chairman Jerome Powell confessed that they delayed raising rates too long in order to control inflation. Some hedge funds have criticized the Fed, saying that it has lost control over inflation. The Nasdaq 100 is currently up 0.77% and is trading at 12,292 points. |
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| Support 1: 12,257.2 Support 2: 12,232.7 Support 3: 12,198.6 Resistance 1: 12,315.8 Resistance 2: 12,349.9 Resistance 3: 12,374.4 Pivot Point: 12,291.3 |
| The price is below the 200-day moving average, between resistance 1 and support 3. Pivot point for trend change at 12,291. RSI neutral, so the index could correct some additional points. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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