Connect with us

Analysis

Daily Analysis: Stocks Bounce Back Hard as Markets Digest North Korea Threat

Published

on

Tuesday Market Recap

Asset Current Value Daily Change
S&P 500 2446 0.11%
DAX 11,945 -1.45%
WTI Crude Oil 46.49 -0.17%
GOLD 1312.00 -0.18%
Bitcoin 4558 4.89%
EUR/USD 1.1995 0.13%

Yesterday’s North Korean missile launch sparked a steep but short-lived decline in risk assets, and a spike in safe-haven markets, such as gold adn the Japanese Yen. The US Dollar got volatile following the event, as first the break to new lows intensified before a strong boince today that could have marked a durable bottom in the battered currency. The Euro slipped back below 1.20 after hitting 1.2175 for a new high. US stocks also surged higher in the second half of the day and finished in the green despite the overnight weakness.

// -- Discuss and ask questions in our community on Workplace.

DXY, 4-Hour Chart Analysis

European equities continued to underperform their US peers, as the DAX dipped below 12,000 again, despite the late weakness in the common currency. Gold was the big winner of the overnight session as it added to its break-out gains and reached $1330 for a new 12-month high before retreating to the $1315 support. The metal is still looking bullish long-term but yesterday’s panic buying could have formed a short-term top. Hurricane Harvey continues to cause huge problems in the in the Gulf area, but crude oil remains under selling pressure, and the short-term downtrend remains intact.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Gold, 4-Hour Chart Analysis

Cryptocurrencies

It has been a mixed day for the crypto segment as Ethereum and Bitcoin led the way higher, but some of the majors suffered steep losses. BTC hit a new all-time high above $4500, breaking the $75 billion barrier in capitalization, while Ethereum surged above $350 to reach $370 in late trading, and get close to the next important target near the $380 level. NEO and Monero were the notble losers of the day, while Ripple remained volatile and Litecoin’s break-out halted near $65 and the coin corrected back towards the $60 level. Dash and Ethereum Classic closed the day virtually unchanged after a low-volatility low-volume session.

BTC/USD, 4-Hour Chart Analysis

Technical Picture

The NASDAQ still trades in a consolidation pattern around the 5850 level, as the sell-offs of the previous weeks all got reversed quickly in the last part of the summer trading period. As volumes are expected to spike in the the next weeks, volatility might increase substantially. September and October are the worst months for equities, and with the broad weakness in stocks the next period could be bearish, but a push to new highs is in the cards, given the short-term strength of the indices. The benchmark faces resistance at 5900 and 6000,with strong confluence support 5725.

NASDAQ, 4-Hour Chart Analysis

Key Economic Releases on Tuesday

Time, CET Country Release Actual Expected Previous
14:30 CANADA M3 Money Supply 4.5% -0.2% -3.7%
16:00 US CB Consumer Confidence Index -0.6% 120.3 121.1

Key Economic Releases on Wednesday

Time, CET Country Release Expected Previous
3:30 AUSTRALIA Building Approvals -5.1% 10.9%
10:00 GERMANY Prelim CPI 0.1% 0.4%
14:15 US ADP Non-Farm Payrolls 186,000 178,000
14:30 US Prelim GDP 2.7% 2.6%
14:30 CANADA Current Account -17.3 bill -14.1 bill

Featured image from Shutterstock

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 224 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




Feedback or Requests?

Analysis

More Chance to Go Up for Litecoin

Published

on

Litecoin short term outlook is quite positive, while in a longer term, it’s somewhat mixed. Shortly, the digital coin may face a very strong resistance at $141, being currently priced at $140. As Dmitriy Gurkovskiy, Chief Analyst at RoboForex, says, Litecoin already tried to test this level earlier this week, but did not succeed.

// -- Discuss and ask questions in our community on Workplace.

In the mid-term Litecoin is trying to break out the current range, and in case it finally manages to break out $141 and stay above, it may go up to $168. Before reaching this target, however, another downtrend may be formed, with Litecoin plunging to the support at $114 again. If the bears succeed in breaking out this level, too, another sell-off target will be at $87.

Current outlook, however, is mostly positive, with the key support being at $114 and the key resistances at $141 and $168. The MACD on D1 is in its negatives, but is going up, issuing a buy signal, while the Stochastic is in the positive area and confirms its buy signal, already issued some time ago.

Fundamentally, Litecoin has got much support this week. The market started buying out the coin once the news on the token being listed at Korbit appeared. As the recent reports say, the crypto started being traded on Korbit yesterday, while withdrawal should be available starting today, Apr 19. This is important for Litecoin: first, Korbit is one of the oldest and most reliable exchanges in Korea; second, as we have already stated a few times, if the crypto becomes widespread across multiple exchanges, its liquidity gets boosted, while the accessibility simplifies the transaction processes.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Korbit decided to hold a contest, with the top 6 LTC/KRW traders getting prizes in Litecoin (the winner gets LTC 50, the runner-up will walk away with LTC 25). Meanwhile, Litecoin being available on Korbit also helped the crypto to rise on Bitfinex.

Currently, Litecoin is one of the most volatile currencies, mostly because of it always being in the news, which does good to its promotion. As such, it was announced a few days ago that LTC would be used as a payment method, and TenX already started developing a prepaid card for that purpose.

By: Dmitriy Gurkovskiy, Chief Analyst at RoboForex

Disclaimer
Any predictions contained herein are based on the authors' particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...





Feedback or Requests?

Continue Reading

Analysis

Bitcoin Prices and Whale Sightings: Evaluating the Latest Trends

Published

on

Bitcoin’s value has skyrocketed 20% over the past eight days, but some say the upward trajectory isn’t as linear as it should be given the length of the most recent correction. The market’s sudden gyrations have left us with only one explanation: the bitcoin whales are back.

// -- Discuss and ask questions in our community on Workplace.

Whale Spotting

It has been reported that the so-called bitcoin whales (those who hold oversized positions in the digital asset) dumped $100 million worth of BTC in less than 24 hours. For example, the anonymous balance of wallet 3D2oetdNuZUqQHPJmcMDDHYoqkyNVsFk9r declined by 6,500 BTC on Tuesday, which is equivalent to $50 million. As a result, bitcoin fell more than $200 on the major exchanges in just a few minutes.

Just one day earlier, bitcoin’s third-biggest wallet shed 6,600 units of the virtual currency at an average price of around $8,026.

Interestingly, a whale may have been responsible for the initial spike in BTC just one week ago. As we reported, a large order on Bitfinex triggered the initial spike in BTC as prices crossed $7,000 on the exchange. For the next two days, bitcoin would surge double-digits to breach $8,000 for the first time since late March.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Investors are also keeping tabs on a high-profile whale based out of Tokyo, Japan. Nobuaki Kobayashi is in the process of liquidating billions of dollars on behalf of Mt Gox creditors. At last check, the trustee had sold about $400 million in bitcoin for an average sales price of $10,105. He’s expected to offload another $1.9 billion.

Speculation Grows

While advocates of bitcoin’s long-term value have barely flinched amid the latest downturn, speculators all but disappeared from the market. A simple analysis of Google search trends also reveals that laypeople have been losing interest in digital currencies since early February.

All that could be changing.

Cryptocurrencies have added nearly $100 billion to their market cap over the past week, with bitcoin doing much of the work. This appears to have compelled bitcoin’s large owners to sell their assets for reasons that are not yet unclear.

Of course, the multiple selloffs could just be coincidence or a bet that future prices will fall again. In the eyes of leading analysts, the latter appears to be less likely.

The head of Pantera Capital, who rarely predicts bitcoin’s future and is thus never wrong when he does, recently told clients that the digital currency has already bottom. Appearing on CNBC’s Fast Money, Dan Morehead said bitcoin’s bear market was just about over and that prices would continue rising from here on.

That said, choppy trading for bitcoin is hardly unusual and has come to be expected in a market that still lacks maturity. Whales or not, recent moves have made it harder to gauge the strength of the recovery.

That’s the message Thomas Lee of Fundstrat Global Advisors recently shared, according to Bloomberg.

“I think it feels off right now because, you know, we’ve been on a down trend since December, and now, even though the volatility hasn’t changed much, it’s hard to tell if bitcoin is trying to stage a recovery or if it’s continuing its down trend,” he said.

At the time of writing, bitcoin was valued at $8,175, having gained 3% over the past 24 hours.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
5 votes, average: 4.20 out of 55 votes, average: 4.20 out of 55 votes, average: 4.20 out of 55 votes, average: 4.20 out of 55 votes, average: 4.20 out of 5 (5 votes, average: 4.20 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 332 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Continue Reading

Recommendations

Trade Recommendation: The Travelers Group

Published

on

Technical Overview

  • On January 23, The Travelers Company’s stock jumped nearly 5% after releasing their 4Q17 earnings (violet arrow in Figure 1). Then, during the “Feb Correction”, the stock pulled back to wipe out the entire gain, and more, over a couple of trading sessions.
  • Since then, the stock has been trading within a 7.5% trading range ($133 – $143.50 trading range – orange horizontal lines). In comparison, the broader markets have been swinging by more than 10% after the Feb 9 low was set.
  • More recently, over the past month, the stock has traded within an even tighter trading range, finding support at $135 and resistance at $140. On one hand, a key resistance continues to push prices lower upon every retest (red trendline and arrows). On the other hand, the stock has bounced off of a 6-month support over half-a-dozen times (green trendline and arrows).
  • The stock has been a laggard over the last 8 trading sessions, while markets recovered significantly and broke above key resistance levels.

Figure 1. TRV Daily Chart

// -- Discuss and ask questions in our community on Workplace.

Implications

  • The stock’s tight trading range has resulted in options selling at below 20% IV for some expiries.
  • A break below the 6-month support is expected to result in a swift leg down, especially if the $133 level gets broken immediately after that.
  • A break above the red trendline likely to have the stock retest $140.

Outlook

  • Neutral with a bearish bias while the stock is trading between the red and green trendlines.
  • Bearish if the stock breaks the green trendline (currently at nearly $136).
  • If the stock breaks the red trendline, outlook will remain neutral, however with a bullish bias, as the stock will likely move higher by at least $3-$4 to retest $140.

Trading Recommendation

  • Buy the May, strike 135 put for roughly $2.40 – $2.60 or short the stock once the green trendline is broken. Use a close below $136 for a confirmation.  At the time of writing, at 11:20 am EST on April 18, the put is trading at $2.40 and the stock at $136.05.
  • Target: Cover stock/sell put when the stock reaches $130.
  • Stop: Cover stock/sell put if the stock closes above the red trendline (currently at $137.95 and falling by roughly 25 cents/day).

Benefit of Recommended Trade

  • A play on both direction and volatility (in the case of the put purchase).
  • A sloping-down resistance used as a stop, resulting in an improving risk-reward profile of the trade as time goes by.

Disclosure: Have a small put position and may buy more contracts based on the trading recommendation’s guidelines.

Featured image courtesy of Shutterstock. 

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //
Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 5 (1 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 7 rated posts




Feedback or Requests?

Continue Reading

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending