Daily review for January 26, 2022
Geopolitical tensions continue in the market. Traders take profit in gold. However, long positions in the metal continue. The Fed will decide on interest rates. The change in interest rates is expected until the meeting in March 2022. The focus is on the bank’s analysis of monetary policy in times of economic recovery and geopolitical tensions.
Global stock indices rebound. Traders expect a significant rise, until the FED confirms or corrects the rally. Tesla reports results today.
Cryptos bounce. Ethereum developers announced a new blockchain that could confirm transactions in 12 seconds. Bitcoin seeks USD$40,000.
| GOLD -0.38% |
| Traders are keeping an eye on the Fed’s interest rate decision. Analysts do not expect a hike until the March 2022 meeting. However, the focus is on Jerome Powell’s press conference, and the bank’s analysis of monetary policy, considering geopolitical tensions. At the moment, traders are taking profit from the rise in gold prices, but remain bullish due to market volatility. The equity market rally is expected to continue today. Traders are also looking forward to Tesla’s earnings report. |
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| Support 1: 1,842.86 Support 2: 1,841.63 Support 3: 1,839.41 Resistance 1: 1,846.31 Resistance 2: 1,848.53 Resistance 3: 1,849.76 Pivot Point: 1,845.08 |
| The metal is above the 200-day moving average. At the moment the price is at the pivot point, which could lead to a change of trend. Expected trading range between USD$1,839 and USD$1,849. Pivot point at USD$1,845. RSI neutral. |
| NASDAQ 100 +1.11% |
| Traders are watching the financial results of Tesla, Intel, AT&T and Boeing among others. Analysts expect an EPS of 2.25 for Tesla, with sales of USD$16.88 billion and a market capitalization of USD$924.30 billion. Today we expect upward movements in equities, as long as the Fed’s speech is oriented to market recovery. At this moment, global stock market indexes are in positive territory. On Wall Street, the Nasdaq 100 is up 1.14%, the S&P500 0.86% and the Dow Jones 0.78%. |
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| Support 1: 14,183.2 Support 2: 14,138.6 Support 3: 14,109.5 Resistance 1: 14,256.9 Resistance 2: 14,286.0 Resistance 3: 14,330.6 Pivot Point: 14,212.3 |
| The index is below the 200-day moving average. The price is at resistance 1, where if the rally is confirmed, it could reach 14,927. Expected trading range between 14,109 and 14,330. Pivot point at 14,212. RSI neutral. |
| ETHEREUM +4.43% |
| Vitalik Buterin, announced that Ethereum’s team of developers are working on a blockchain that will allow the confirmation of transactions in 12 seconds, which will present efficiency, network security and decrease errors. For its part, Bank of America announced that digital currencies are inevitable and their implementation in the economy will grow. On the other hand, the government of Kazakhstan announced that it will cut off power to Bitcoin miners. At the moment cryptos are bouncing back. Ethereum is up 4.43% and is trading at USD$2,488. |
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| Support 1: 2,449.38 Support 2: 2,438.34 Support 3: 2,430.90 Resistance 1: 2,467.86 Resistance 2: 2,475.30 Resistance 3: 2,486.34 Pivot Point: 2,456.82 |
| The price is still below the 200-day moving average. However, the price is looking for USD$2,651, which would generate upward momentum towards new resistance levels. Pivot point for trend change at USD$2,456. RSI neutral. |
| NATURAL GAS +4.75% |
| Saudi Arabia’s natural gas production reaches record levels. The country’s objective is to replace part of Europe’s needs, which originate in Russia. Shell announced an important discovery of reserves in Namibia. The United States continues to increase LNG exports to Europe. According to Goldman Sachs analysts, the conflict in Ukraine could double the price of the commodity. At the moment the price is up 4.75% and is trading at USD$4.09 per BTU. |
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| Support 1: 3.976 Support 2: 3.915 Support 3: 3.876 Resistance 1: 4.076 Resistance 2: 4.115 Resistance 3: 4.176 Pivot Point: 4.015 |
| The price is at resistance level 3, with bullish momentum, trying to consolidate the USD$4 per BTU area. Expected trading range between USD$3.87 and USD$4.17. Pivot point for trend change at USD$4.01. RSI in overbought zone. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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