Daily review for October 22, 2021
WTI price corrects due to the winter forecast report. According to the National Oceanic and Atmospheric Administration, a warm winter is expected.
Inflation continues to worry the market. Traders continue with long positions in gold and silver. Evergrande worries the Asian market. Contagion risk continues in the global financial markets due to the exposure of banks.
Natural Gas corrects. Commodity traders assess the European winter forecast. Leaders summit discuss Nord Stream 2.
Bitcoin starts to correct. Traders started to take profits at the point of historical highs. Now traders evaluate the best support level to re-enter the market.
| WTI -0,53% |
| The price of crude oil began to fall as soon as the winter forecast for the United States became known. According to the National Oceanic and Atmospheric Administration, a warm winter is expected. This translates into a lower consumption of oil and oil derivatives and energy, because the winter will not be as cold as anticipated. At this moment, the price of WTI is falling 0.53% and is trading at USD$81.97 per barrel. Brent benchmark is trading at USD$84.01 per barrel. |
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| Support 1: 82.06 Support 2: 81.97 Support 3: 81.86 Resistance 1: 82.26 Resistance 2: 82.37 Resistance 3: 82.46 Pivot Point: 82.17 |
| Price remains in the USD$81 area. It also remains above the 200-day moving average. At this moment, the price is between the pivot point and support 1. Expected trading range between USD$81.86 and USD$82.46. Pivot point at USD$82.17. RSI neutral. |
| GOLD +0.31% |
| Traders continue to keep a close eye on global inflation levels. The inflation target of developed countries, equivalent to 2% per year, is still far from reality. Therefore, buying positions in gold and silver continue in the market. At this moment the price of gold is up 0.31% and is trading at USD$1,786 per Troy ounce. Silver is trading at USD$24.23. In Asia, the market is focused on Evergrande’s debt payment. It seems that the company’s management is willing to pay, however liquidity problems continue. Traders are also aware of Jerome Powell’s statements as FED chairman. |
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| Support 1: 1,786.85 Support 2: 1,786.15 Support 3: 1,785.35 Resistance 1: 1,788.35 Resistance 2: 1,789.15 Resistance 3: 1,789.85 Pivot Point: 1,787.65 |
| The price remains above the 200-day moving average. Bulls are looking to maintain the bullish channel to reach USD$1,800. At the moment the price is at resistance 1. If it manages to overcome this zone, it could climb towards the level of USD$1,801. RSI neutral. Pivot point at USD$1,787. |
| NATURAL GAS -1.23% |
| Winter forecast in the United States and Canada, caused the prices of energy commodities including WTI, Brent, Thermal Coal and Natural Gas to correct during the Asian session. Natural Gas is currently down 1.23% and is trading at USD$5.13 per BTU (British Thermal Unit). Commodity traders however, are keeping an eye on demand from Europe and the winter forecast for Northern Europe. If forecasts indicate lower temperatures than expected, prices could rebound. |
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| Support 1: 5.132 Support 2: 5.120 Support 3: 5.110 Resistance 1: 5.154 Resistance 2: 5.164 Resistance 3: 5.176 Pivot Point: 5.142 |
| Price is at the pivot point, so there could be a change of trend. Expected trading range between USD$5.11 and USD$5.17. Pivot point at USD$5.14. RSI neutral. |
| BITCOIN -3.11% |
| After reaching record highs at USD$67,000, traders started to take profits from the two-week crypto rally. Bitcoin is currently down 3.11% and is trading at USD$62,745. The market is waiting for the inflection point. When Coinbase went public, Bitcoin price also set record highs, but then the sell-off gained depth and the price dropped to USD$28,330 equivalent to a 55% drop. A technical signal is the 200-day moving average. At the moment the price remains above it. |
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| Support 1: 62,817.6 Support 2: 62,613.1 Support 3: 62,438.8 Resistance 1: 63,196.5 Resistance 2: 63,370.7 Resistance 3: 63,575.3 Pivot Point: 62,991.9 |
| Price is between the pivot point and support 1. Expected trading range between USD$62,438 and USD$63,575. Pivot point for trend change at USD$62,991. RSI neutral. The most immediate support is at USD$62,221. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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