Mohicans markets：10.21-MHM European Perspective

On Tuesday, Oct. 21, spot gold shocked lower during the Asian session, touching the 1620 handle, supported by expectations that the Federal Reserve will make two more consecutive 75-point rate hikes during the year, as U.S. bond yields continued to climb higher, with the U.S. 10-year Treasury yield refreshing its high since June 2008 to 4.27%. Most global Treasury yields followed suit and set new multi-year highs, continuing to depress gold prices, as gold is a non-interest bearing asset and rising Treasury yields mean the opportunity cost of holding gold increases.

During the Asian and European sessions, U.S. crude oil has shaken slightly lower and is currently trading near $84.40/barrel. This week, the oil market is mixed with multiple and short news. On the one hand, EIA crude oil inventories fell, Asian powers may relax the entry isolation period, coupled with the previous OPEC+ production cut plan, to provide support for oil prices, but the Fed's expectations of further aggressive rate hikes continue to rise, the dollar is strong, U.S. bond yields continue to rise, 10-year Treasury yields, refreshing highs since June 2008, stock markets fell, depressing oil prices. In order to curb gasoline prices before the mid-term elections, President Biden of the United States claimed to further release strategic crude oil reserves, which also depressed oil prices. Relatively speaking, the short-term oil price tends to run in shock. In view of the overnight surge and fall, it suggests that the upper selling pressure is strong, and the short-term oil price tends to run in shock. Relatively speaking, oil prices are short term biased to oscillate. Given the overnight high retreat, suggesting stronger selling pressure above, the short term is slightly biased to oscillate to the downside.

This trading day focuses on the European Leaders' Summit, US President Biden and Fed officials' speeches, and pays attention to the UK political situation and geopolitical situation. Pay attention to the changes in the US crude oil drilling data. The previous week, the US crude oil drilling data surged by 8, breaking the highest level since March 2020. At present, the market expects that the US crude oil drilling data will further increase, which may suppress oil prices.

Mohicans Markets strategies are for information purposes only and are not intended as investment advice, please read the disclaimer at the end of the article. The following strategies were updated on October 21, 2022 at 15:30 BST.

Technical analysis

CME Group options layout changes (futures prices in December):

1695 Bullish increased significantly, bearish decreased slightly, long target

1675 Bullish increased, bearish slightly increased, resistance level

1650 Bullish increase, bearish decreased but outstanding stock, resistance level

1640-1645 Bullish increased greatly, bearish increased greatly, key resistance area

1620 Bullish slightly increased, bearish slightly increased, support level

1600 Bullish increased, bearish sharply decreased, support level

1575 Bullish slightly increased, bearish significantly increased, short target

Order flow key point marking (spot price):

1668 Key resistance, break stabilization meant short term short situation reversal

1646 Key resistance, under which the short position pattern continued

1640-42 Resistance zone

1631 Short-term in long and short boundary, Asian market first payed attention to this horizontal resistance

1625.5 Key support, pay attention to whether European and American markets will step back to confirm

1600 Integer level, expected to have some psychological support

Note: The above strategy was updated at 15:00 on October 21. The strategy is a daytime strategy, please note the strategy release time.

CME Group option layout Changes (futures price in December):

19.20-19.25 Bullish increased, bearish slight increased, bulls

19 Bullish increased, bearish decreased, long target

18.90 Bullish increased, bearish increased, resistance level

18.75-18.80 Bullish increased, bearish slightly decreased, bulls

18.50 Bullish increased, bearish decreased slightly, key level

18.25 Bullish unchanged, bearish increased, bears

Order flow key point marking(spot price):

20 Key resistance

19.30 CP1 data is the high of the day, significant resistance

18.95 Upper edge of shock section, resistance level

18.6 First support, break below 18-18.3 important support area

18-18.3 Important support area

17.5-17.65 Previous low area

Note: The above strategy was updated at 15:00 on October 21. The strategy is a daytime strategy, please note the strategy release time.

CME Group option layout Changes (futures price in December):

90. Bullish increased sharply but stocks were large, while bearish increased slightly but stocks were large and resistance level

89 Bullish increased significantly, bearish increased, long target

88.5 Bullish slightly decreased, bearish significantly increased, resistance level

87 Bullish decreased, bearish increased significantly, resistance level

84 Bullish increased, bearish increased, support level

83 Bullish increased, bearish increased, support and bears target

80 Bullish slightly decreased but large stock, bearish significantly increased and large stock, short target

Order flow key point marking:

90-92 Bull target of option bet

88.6-89 Key resistance during the day

86.8-87 Resistance area, breakthrough looking at 88.6-89

85.6 First resistance during the day, and the short-term long and short boundary

84 Important support

82.6 Bulls key support

81.8 Double bottom support, it is very likely to start a new downward movement

80-81 Key support area

Note: The above strategy was updated at 15:00 on October 21. The strategy is a daytime strategy, please note the strategy release time.

CME Group options layout changes：

0.9875-0.99 Bullish increase sharply, bearish decrease slightly and the stock is large, long target and resistance

0.985 Bullish increase, bearish decrease sharply but the stock is large, rebound target and resistance

0.98 Bullish unchanged, bearish increase sharply, resistance

0.975 Bullish unchanged, bearish increase sharply and the stock is large, fall back target and support

0.97 Bullish unchanged, bearish decrease slightly, support

0.965 Bullish decrease slightly, bearish increase slightly and the stock is large, short target

Note: The above strategy was updated at 15:00 on October 21. This strategy is a day strategy, please pay attention to the release time of the strategy.

CME Group options layout changes：

1.13 Bullish decrease slightly, bearish decrease slightly, significant resistance

1.125-1.127 Bullish unchanged, bearish increase, resistance

1.12 Bullish increase, bearish increase, rebound target and resistance

1.115 Bullish unchanged but the stock is large, bearish unchanged, support

1.11 Bullish unchanged but the stock is large, bearish increase, fall back target and support

1.105-1.107 Bullish unchanged, bearish increase, short target

1.10 Bullish unchanged, bearish increase and the stock is large, next short target

Note: The above strategy was updated at 15:00 on October 21. This strategy is a day strategy, please pay attention to the release time of the strategy.

Statement|Disclaimer

Disclaimer: The information contained in this material is for general advice only. It does not take into account your investment goals, financial situation or special needs. We have made every effort to ensure the accuracy of the information as of the date of publication. MHMarkets makes no warranties or representations about this material. The examples in this material are for illustration only. To the extent permitted by law, MHMarkets and its employees shall not be liable for any loss or damage arising in any way, including negligence, from any information provided or omitted from this material. The features of MHMarkets products, including applicable fees and charges, are outlined in the product disclosure statements available on the MHMarkets website. Derivatives can be risky and losses can exceed your initial payment. MHMarkets recommends that you seek independent advice.

Mohicans Markets, (Abbreviation: MHMarkets or MHM, Chinese name: Maihui), Australian Financial Services License No. 001296777.