Best Trading Ideas for the First Half of 2022
Geopolitical tensions, monetary tightening by major regulators, an energy crisis, skyrocketing inflation, and a still undefeated coronavirus. These are the main factors that will influence the financial market in the first half of 2022.
Does this picture scare and terrify you? Don't panic!
Here we will tell you where to invest 1000 USD in the first half of 2022 to make money. Please find below the accurate trading recommendations and the most promising assets in the current situation. The recommended broker NPBFX, known since 1996, is our information partner. You can open every trade that we cover in this article on a trading account with this broker.
Bitcoin (BTC): 900% profit with 2 trades!
At the beginning of February 2022, BTC is being traded at about $37,000. In 2021, the world's main cryptocurrency has strengthened its positions by almost 3 times: starting the year from the level of $23,000 to a new all-time high of $69,000. Capitalization exceeded $3 trillion for the first time in history.
Despite the fall at the beginning of 2022, experts agree that this year Bitcoin will be able to update its record. But should one buy or sell it in the coming months?
Let's consider the prospects of bitcoin from the pure technical analysis point of view, and also determine the entry points into the market that will allow you to earn money in the first half of this year. Analyzing the weekly chart of the BTCUSD pair, we came to the conclusion that in the near future we should expect a decrease in the BTC value. The MACD oscillator is showing a clear sell signal, here the histogram bars are increasing in the negative area. The Stochastic Oscillator is showing a mixed-signal, but the %K and %D lines are still in the oversold area. Given these data, we conclude that in the next few weeks there will be a decline in bitcoin to the area of $28,000-29,000 per coin, where the strong support levels remain in place. There will be rebound expectations after that, and quotes can grow significantly, up to $47,000-48,000. In the current situation, a trader who opened a short (sell) deal with a volume of 0.03 lots at a price of $38,000 and closed it at $28,000 would earn $3,000 in net profit. There would be a great opportunity for the same trader to open a deal in the opposite direction, buying Bitcoin at $28,000 with the same volume. In this case, closing the deal at a price of $48,000 per coin will bring another $6,000. As a result, there are high chances to earn 900% profit just with two trades!
EURUSD: we write down the profit of $1500 to our account
EURUSD has been the leading pair of the financial market in terms of liquidity and trading volumes for over 10 years. It is obvious that in 2022 the asset will retain its position.
The EURUSD currency pair is also the most popular among private traders. Let's analyze the technical picture, and also try to make money on the upcoming movement of the pair's quotes. For the analysis, we will use the weekly charts.
A clear buy signal is given by the MACD oscillator, where the histogram bars are decreasing in the negative area. At the same time, the histogram crossed the moving average from bottom to top. On the Stochastic oscillator, a bullish signal has just begun to form. In the near future, the short %K line will cross with the signal %D, and both lines will move towards the EURUSD overbought area.
Considering the current readings of the oscillators, we expect quotes to rise to the key resistance level of 1.20000 in the next 5-6 months.
Having bought euro at the rate of 1.15 to the US dollar with a volume of 0.3 lots, a trader can earn $1500 or 150% profit (with a deposit of $1000) by selling the European currency at the rate of 1.20.
USDJPY: +165% on one trade!
The currency pair is becoming attractive against the backdrop of rising US Treasury yields. The dollar is strengthening against the Japanese yen in anticipation of an increase in interest rates by the Fed. After interest rates hike, the US currency will become even more interesting for investors. The first hike is expected by March, and by the end of 2022, rates should double.
To find out if everything is so clear in the USDJPY pair, let's turn to technical analysis, it will allow us to draw objective conclusions.
If we analyze the price chart of the pair and the data of the MACD and Stochastic oscillators, we can see that USDJPY is about to break into a downward rally. MACD is already giving a clear sell signal, and it will form on the Stochastic in the near future.
In this scenario, the pair's quotes may fall to the area of 108.00-109.00, where there is a strong support level.
It is clear that the fundamental situation is now more in favor of the US dollar, but there is no actual increase in rates yet, and the market is moving only on the expectations and promises of Fed officials.
If this trading scenario comes to life, a trader who opened a short trade with a volume of 0.3 lots on USDJPY from the level of 114.00 and closed it at the level of 108.00 can add another $1650 to his deposit of $1000. Profit from the trade will boost the initial deposit by 165%.
Gold: protecting the deposit from inflation
Gold will be the best metal to invest in 2022. In a period of high inflation and crisis, it acts as a reliable shield. In early February, gold is trading at $1,800 an ounce. By the end of this year, it may rise to $1,900 per ounce.
In general, both the fundamental factors and technical analysis are supporting the XAUUSD, but with one "but". Both the MACD oscillator and the Stochastic oscillator are now showing signals to sell gold. Therefore in the short term, we should expect some decrease in the cost of the precious metal. In our opinion, the area of 1750.00 will act as a strong support level for the XAUUSD, from where a rebound and growth of quotations will occur. This level can be used to open long trades (buy) on gold. As a target, you can choose the above level of $1900 per troy ounce. In case of successful implementation of the scenario, a trader can earn about $1500 on a long trade with a volume of 0.1 lots. In this case, the increase in the deposit of $1000 will be +150%.
Brent oil: + another 100% profit to the deposit!
In the first days of February 2022, oil reached $90 per barrel. Oil price continues rising. There are several reasons for this:
Geopolitical tensions in the Middle East.
Supply shortage due to omicron strain of coronavirus.
The energy crisis in the global economy.
In 2022, Brent has every chance to rise to $100 per barrel. The price will be able to reach the coveted mark in the first half of 2022.
The technical analysis of the XBRUSD pair also indicates that the price growth of a barrel of Brent will go on. However, the bulls are unlikely to be able to gain a foothold above $100 in the first half of the year. Despite the fact that the MACD oscillator is showing a clear buy signal, the Stochastic oscillator lines are already in the overbought area of the pair. This suggests that in the medium term they will exit this area, which will be accompanied by a corrective decline of the price. In our opinion, the pullback will occur precisely from the resistance level of 100.00.
The current price of a barrel still makes it possible to make good money on the growth of "black gold" to the level of $100 per barrel. By opening a deal to buy Brent with a volume of 0.1 lot at a price of $90, and subsequently selling it at $100, an investor can add another 100% profit or $1,000 equivalent to his deposit of $1,000.
Cryptocurrency BTC, currency pairs, gold, oil are becoming quite promising options for trading in 2022. Gold suites best for cautious and conservative investors. For those who prefer stability and good incomes - oil and currency. Investors who are not afraid to take risks and are constantly monitoring growing assets opportunities can choose Bitcoin.
NPBFX is a reliable broker for trading in 2022
For profitable trading in all asset classes, it is important to work with a reliable trusted broker - NPBFX. You can open trades with the broker's STP accounts for FX currency pairs, energy commodities, stocks, indices, precious metals, and cryptocurrencies. Guaranteed instant order execution at the best prices, leverage up to 1:1000, cash-back program. Each NPBFX client account is insured for the amount of EUR 20,000.
Account depositing is free - 0% commission for all available payment options: bank transfer, credit cards, EPS, cryptocurrency methods.
The minimum deposit for live trading is only $10.
Don't put off profits "for later", start trading with a trusted company right now, using the trading recommendations presented in the article on a trading account with NPBFX. Registration takes only 2 minutes and is available via the link.