Daily Review for April 18, 2022
Natural gas futures continue to rise as European countries continue to search for new sources. Italy closed a deal with Algeria for the supply of 9 billion cubic meters.
Elon Musk launched a USD$43 billion hostile bid to acquire Twitter. The company’s Board of Directors defends itself through Poison Pills.
Gold approaches USD$2,000 per Troy ounce as traders begin to trade the shares of companies that report financial results. Today it is Bank of America’s turn.
Investment and speculative funds start to open buying positions in Bitcoin. The Crypto remains sideways, but is looking to rebound towards USD$50,000.
|NATURAL GAS +4.56%|
|Natural gas futures for the coming months of the year continue to rise, due to the difficulty for importers to find new sources to replace Russian volumes. For its part, Algeria has committed to supplying 9 billion cubic meters through Italy and from 2023 will triple its gas supply to the country. On Friday, natural gas closed with a rise of 4.56%. The commodity is trading at USD$7.31 per BTU.|
|Support 1: 7.293|
Support 2: 7.258
Support 3: 7.232
Resistance 1: 7.354
Resistance 2: 7.380
Resistance 3: 7.415
Pivot Point: 7.232
|The price is above the 200-day moving average. Expected trading range between USD$7.23 and USD$7.41. Pivot point for trend change at USD$7.23. Price is at resistance 1. If the Bulls manage to overcome this area, the next resistance level to overcome is at USD$7.38 and USD$7.41. RSI in overbought zone.|
|NASDAQ 100 -2.27%|
|Elon Musk is trying to buy Twitter and delist it from the market. The entrepreneur launched a Hostile takeover, with a value of USD$43 Billion. However, the company’s Board of Directors defended itself through the “poison pill”, a move that allows the purchase of shares without limit and without additional premium in the price in order not to give up control of the company. At the moment Elon Musk owns 9.2% of the company’s shares. This could generate interesting volatility in the Nasdaq 100, which closed Friday with a 2.27% drop. The index is trading at 13,894 points.|
|Support 1: 13,864.4|
Support 2: 13,834.1
Support 3: 13,783.1
Resistance 1: 13,945.7
Resistance 2: 13,996.7
Resistance 3: 14,027.0
Pivot Point: 13,915.4
|The index is below the 200-day moving average, right at support 1. Expected trading range between 13,783 and 14,027. Pivot point for trend change at 13,915. RSI in oversold zone, which could lead to a price rebound and positive opening.|
|As the week begins, traders are watching Bank of America’s corporate results. Analysts are reporting a possible good quarter for the bank, as a result of the Fed’s economic stimulus packages that boosted the US economy for Q4 2021. On the other hand, for Q1 2022, the bank may have pressure on its cash flow due to the sanctions on Russia, which impacts the economic position of each U.S. bank on Russian territory. Traders are holding positions in gold, expecting more volatility in the markets. On Friday, the metal closed with a correction of 0.61% but close to the resistance of USD$1,980, including a possible rebound towards USD$2,000 per Troy ounce.|
|Support 1: 1,971.41|
Support 2: 1,970.13
Support 3: 1,969.16
Resistance 1: 1,973.66
Resistance 2: 1,974.63
Resistance 3: 1,975.91
Pivot Point: 1,972.38
|The price is above the 200-day moving average. Gold is between support 1 and resistance 2. Expected trading range between USD$1,969 and USD$1,975. Pivot point for trend change at USD$1,972. RSI neutral, so the price may correct some additional points.|
|Whales are showing interest in entering the market with significant volumes at the current price level. Investment funds and hedge funds have started to buy from USD$39,000. Among the large companies that would be buying are Microstrategy and Tesla. At the moment the price of Bitcoin is falling 0.30% and is trading at USD$40,115.|
|Support 1: 40,027.4|
Support 2: 39,936.7
Support 3: 39,804.4
Resistance 1: 40,250.4
Resistance 2: 40,382.7
Resistance 3: 40,473.4
Pivot Point: 40,159.7
|Sideways movement above USD$40,334. The price remains below the 200-day moving average. Although it is a bearish signal, the volume of purchases continues to increase which may lead to a rebound. Expected trading range between USD$39,804 and USD$40,473. Pivot point at USD$40,159. RSI neutral.|
Capitalix Market Research
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