Daily review for December 27, 2021
The energy crisis continues globally. Energy demand continues to increase in Europe and the Northern Hemisphere. The price of Natural Gas continues to rise and approaches USD$4 per BTU.
WTI price corrects as the risk of border closures increases due to the increase in Omicron cases. China starts to warn about the increase of cases in different provinces.
Bulls watch for confirmation of crypto Christmas rally. Bitcoin is trading higher at the moment, moving above USD$51,000. Traders are looking for USD$53,000 to consolidate the upside momentum.
Metals correct. However, hedge funds are increasing their exposure to mining stocks, mainly due to the good performance of companies in the sector during the year.
| WTI -1.30% |
| WTI price starts the week down 1.30% and is trading at USD$72.92 per barrel. The pandemic continues, and Omicron cases are increasing globally. On the other hand, hedge funds are increasing their exposure to metals mining companies. The annual returns of Gold, Silver, Platinum, Copper, Tin, Zinc, among others, have attracted the attention of the hedge funds capital flow. On the demand side, energy consumption in Europe is increasing. The price of natural gas is up 1.27% and is trading at USD$3.67 per BTU. |
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| Support 1: 72.77 Support 2: 72.61 Support 3: 72.47 Resistance 1: 73.07 Resistance 2: 73.21 Resistance 3: 73.37 Pivot Point: 72.91 |
| The price is above the support level of USD$72.90 per barrel. The Bulls are looking to change the trend to look for the USD$73.60 zone. On the other hand, the Bears are looking for support at USD$72.20 per barrel. Pivot point for trend change at USD$72.91. RSI neutral. |
| NATURAL GAS +1.32% |
| Energy demand in Europe and the Northern Hemisphere continues. Winter is presenting colder temperatures than initially expected. As a result, the price of Natural Gas is currently rising by 1.32% and is trading at USD$3.67 per BTU. Due to the energy crisis, investments in natural gas projects are increasing globally. For its part, the United Kingdom is developing an exploration campaign in the country, in order to supply local demand and also to export to Europe. |
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| Support 1: 3.651 Support 2: 3.616 Support 3: 3.590 Resistance 1: 3.712 Resistance 2: 3.738 Resistance 3: 3.773 Pivot Point: 3.677 |
| The price is showing a rebound from the significant decline it evidenced. At this moment, the supply and demand movements are being presented over the zone of USD$3.67 per BTU. Expected trading range between USD$3.58 and USD$3.77. RSI neutral. |
| BITCOIN +1.69% |
| Bulls are looking to reach the USD$53,000 level to confirm Bitcoin’s uptrend. The price is currently up 1.69% and is trading at USD$50,723. Bulls continue to buy the crypto, mainly because of the scarcity effect that could be generated as the Bitcoin supply limit is met. Hedge Funds and Institutions continue with long positions, as well as the retail market. At the moment, traders are waiting for the confirmation of the crypto Christmas rally for the end of the year. |
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| Support 1: 50,599.0 Support 2: 50,484.1 Support 3: 50,282.1 Resistance 1: 50,915.9 Resistance 2: 51,117.9 Resistance 3: 51,232.7 Pivot Point: 50,801.0 |
| Price is between the pivot point and support 1. Expected trading range between USD$50,282 and USD$51,232. Pivot point for trend change at USD$50,801. RSI neutral. Bulls maintain target at USD$53,064. |
| SILVER -0.88% |
| Silver price is currently down 0.88% and is trading at USD$22.73 per Troy ounce. Bulls are trying to keep the price above the 200-day moving average. Gradually the metals market has been trying to recover for the end of the year. Longs are looking for USD$25 per Troy ounce. However, they recognize that the upward movement depends on gold and market volatility. At the moment the market is flattening out, and traders are looking ahead to the Christmas rally. |
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| Support 1: 22.703 Support 2: 22.658 Support 3: 22.613 Resistance 1: 22.793 Resistance 2: 22.838 Resistance 3: 22.883 Pivot Point: 22.748 |
| The price is in the support zone, looking for a possible rebound from the current level. At the moment, silver is above the 200-day moving average. Expected trading range between USD$22.61 and USD$22.88. Pivot point for trend change at USD$22.74. RSI neutral. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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