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Daily review for January 03, 2022

Wall Street starts the year with bullish movements, driven by buying euphoria. Analysts are attentive to the contagion effect due to the possible default of Evergrande. The stock was suspended from trading on the Hong Kong Stock Exchange.

The price of natural gas is correcting due to the weather report that showed a less cold winter than expected.

Ethereum starts the year with an interesting rally driven by Vitalik Buterin’s announcements.

WTI is looking for the bullish channel up to USD$80 per barrel. The market is attentive to the OPEC+ meeting and announcements.

DOW JONES +0.27%
Wall Street stock indexes start the year with bullish movements. The Dow Jones is currently up 0.27% and is trading at 36,436 points. Traders’ radar is watching the Evergrande contagion effect, after the company’s shares were suspended from trading on the Hong Kong Stock Exchange. Under this scenario, traders speculate that the company could declare a total default, which would impact banking globally due to debt exposure. For the moment, the market is awaiting the company’s official statement and the possible intervention of regulators.
Support 1: 36,428.2
Support 2: 36,401.4
Support 3: 36,381.1
Resistance 1: 36,475.3
Resistance 2: 36,495.6
Resistance 3: 36,522.4
Pivot Point: 36,448.5
The index is at resistance 1, where it is moving sideways. The main support is at 35,873 points. Trading range between 36,381 and 36,522. Pivot point for trend change at 36,448. RSI neutral.

The price of natural gas is currently down 0.24% and is trading at USD$3.72 per BTU. Traders are paying close attention to the performance on the price of the commodity. On one hand, weather reports in Europe have shown a less cold winter than expected, so demand may tend to decrease. On the other hand, there is tension between Russia and Ukraine, which could lead to a rebound in commodity prices. In this sense, traders see possible purchases at the current price level, foreseeing greater volatility.
Support 1: 3.672
Support 2: 3.666
Support 3: 3.653
Resistance 1: 3.691
Resistance 2: 3.704
Resistance 3: 3.710
Pivot Point: 3.685
The price is at the pivot point, where a change of trend could be confirmed. Expected trading range between USD$3.65 and USD$3.71. RSI neutral. If the price changes trend, it could reach USD$4.05.

Investors start the year with bullish positions in Ethereum. In an official statement, Vitalik Buterin announced that the Ethereum whitepaper predicted DeFi (Decentrilized Finance). He also communicated, that they continue to work to reduce transaction costs to a minimum of USD$0.5 per transaction. Thus, the market supports Buterin’s vision, with Ethereum currently up 1.91% and trading at USD$3,818.
Support 1: 3,796.10
Support 2: 3,791.12
Support 3: 3,781.50
Resistance 1: 3,810.70
Resistance 2: 3,820.32
Resistance 3: 3,825.30
Pivot Point: 3,805.72
The price is at resistance 2, seeking to overcome the 200-day moving average line, which would confirm the uptrend. Expected trading range between USD$3,781 and USD$3,825. Pivot point for trend change at USD$3,805. RSI neutral.

WTI +1.42%
The Chinese government has called on state-owned companies to reduce energy consumption. Meanwhile, Saudi Arabia continues with discounted forward sales to customers in Asia. At the moment WTI is up 1.42% and is trading at USD$76.23 per barrel. Traders are looking forward to the OPEC+ meeting at the beginning of the year. The market is analyzing the cartel’s position, which is interested in taking advantage of the current price level. On the other hand, there is the position of the United States and its allies, who are looking to sell part of their strategic reserves in order to regulate prices.
Support 1: 75.78
Support 2: 75.55
Support 3: 75.44
Resistance 1: 76.12
Resistance 2: 76.23
Resistance 3: 76.46
Pivot Point: 75.89
Price is currently at resistance 1. Bulls are looking for USD$78.75 per barrel. Expected trading range between USD$75.44 and USD$76.46. Pivot point for trend change at USD$75.89. RSI neutral.

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