Daily Review for July 28, 2022
Equity markets are starting to rebound after discounting the Fed’s interest rate hike. The Nasdaq 100 finished correcting on the back of poor results from Microsoft and Google.
The G7 continues to work on a plan to set a ceiling on oil prices in order to reduce Russia’s revenue sources.
According to investor Raoul Pal, Ethereum could overtake Bitcoin after the merger scheduled for September 2022.
Sideways trend in gold as the market awaits the Fed’s decision. Analysts expect a rate hike between 75 to 100 basis points.
| NASDAQ 100 +2.88% |
| Equity markets are starting to rebound after discounting the Fed’s interest rate hike. The Nasdaq 100 finished correcting given the poor results of Microsoft and Google, companies that did not meet investors’ expectations. At the moment the Nasdaq 100 is up 2.88% and is trading at 12,441 points. Traders’ expectations are on Meta’s results. On the other hand, if the FED verifies that inflation is under control, more moderate interest rate hikes could occur later in the year creating a rebound in the market. |
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| Support 1: 12390.7 Support 2: 12366.3 Support 3: 12350.2 Resistance 1: 12431.2 Resistance 2: 12447.3 Resistance 3: 12471.7 Pivot Point: 12406.8 |
| Price is above the 200-day moving average, between support 1 and resistance 1. Expected trading range between 12,350 and 12,471. Pivot point for trend change at 12,406. RSI in overbought zone. To validate the uptrend, the index should overcome resistance 2. A not very high impact is expected after the FED decision, as the market had already discounted it. |
| WTI +2.42% |
| The G7 continues to work on a plan to set a ceiling on oil prices in order to reduce Russia’s revenue sources. According to the group, the deadline for a plan is December 5, 2022. WTI is currently up 2.42% and is trading at USD$97.26 per barrel. In the United States, oil inventories decreased by 4.5 million barrels, compared to the market forecast of 1 million. According to the International Monetary Fund, the global economy could witness the strongest recession in the last 50 years. |
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| Support 1: 97.01 Support 2: 96.53 Support 3: 96.12 Resistance 1: 97.90 Resistance 2: 98.31 Resistance 3: 98.79 Pivot Point: 97.42 |
| The price is slightly above the 200-day moving average, between resistance 1 and support 1. Expected trading range between USD$96.12 and USD$98.79. Pivot point for trend change at USD$97.42. RSI neutral but approaching the overbought zone, where traders could start taking profits. |
| ETHEREUM +8.91% |
| According to investor Raoul Pal, the crypto could surpass Bitcoin after the merger scheduled for September 2022. Among the conditions for Ethereum to surpass Bitcoin’s value are: the decrease in supply due to the new protocols and the increase in demand, plus interest in staking Ethereum. Ethereum is currently up 8.91% and is trading at USD$1,492. Bulls are starting to look for USD$1,500. |
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| Support 1: 1485.12 Support 2: 1479.91 Support 3: 1475.70 Resistance 1: 1494.54 Resistance 2: 1498.75 Resistance 3: 1503.96 Pivot Point: 1489.33 |
| The price is slightly above the 200-day moving average, between resistance 1 and support 2. Expected trading range between USD$1,475 and USD$1,503. Pivot point for trend change at USD$1,489. RSI reached the overbought zone, but returned to neutral, so buying interest continues. |
| GOLD +0.08% |
| Gold trades sideways as the market awaits the Fed’s decision. Analysts expect a rate hike between 75 to 100 basis points. It all depends on the inflation analysis of the bank’s team. At the moment gold is up 0.08% and is trading at USD$1,719 per Troy ounce. |
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| Support 1: 1714.76 Support 2: 1712.63 Support 3: 1710.81 Resistance 1: 1718.71 Resistance 2: 1720.53 Resistance 3: 1722.66 Pivot Point: 1716.58 |
| Price is above the 200-day moving average, between resistance 1 and support 1. Expected trading range between USD$1,710 and USD$1,722. Pivot point for trend change at USD$1,716. Neutral RSI, which indicates that traders are waiting for the results of rates to take positions in gold to reduce market risk in portfolios. |
| Sources |
| Reuters Market watch Bloomberg InvestFW Market Research |
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