Connect with us

Analysis

Daily Analysis: Stocks Turn South as Pound Rockets Higher

Published

on

Wednesday Market Recap

Asset Current Value Daily Change
S&P 500 2559 -0.31%
DAX 12953 -0.45%
WTI Crude Oil 52.17 -0.57%
GOLD 1279.00 0.03%
Bitcoin 4568 -1.89%
EUR/USD 1.1814 0.42%

Global stocks headed lower in a concerted fashion, as the rally in Japan ended and US equities also suffered a “large” intraday sell-off. Although the 1% drop is only meaningful in the context of the recent period’s record low volatility, it could be the precursor of a busier period, as the major US indices are all overbought, and a deeper correction is almost baked in the cake. That said, only the NASDAQ is showing signs of relative weakness with the DOW and the S&P 500 still trading very close to their all-time highs, despite today’s drop.

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

NASDAQ, 4-Hour Chart Analysis

The Great British Pound was once again among the most active currencies, as the Better than expected British GDP release boosted rate hike odds and pushed the Pound higher despite the continued Brexit fears. The GBP/USD pair gained as much as 1%, while the Euro also turned slightly higher against the Dollar on the positive German IFO index.

// -- 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 -- //

While both the US Durable Goods Orders and New Home Sales were better than expected, the Dollar stocks got hit by the latest battles inside the Republican Party and some negative earnings surprises by Chipotle and AMD. That said, the Canadian Dollar and the Aussie lost significant ground even compared to the Greenback, as the RBC’s monetary statement was more dovish than expected, and the Australian CPI index came in well below expected.

GBP/USD, 4-Hour Chart Analysis

Commodities had a hectic session with wild swings in precious metals and crude oil alike. The changes in US crude inventories and production sent mixed signals, while gold has been lifted by the slightly negative sentiment and the dip in equities and the Dollar.

Cryptocurrencies

The major coin fell in a concerted fashion, as the correction in Bitcoin deepened and altcoins lost some momentum after Tuesday’s strong bullish move. Despite the sell-off, most of the dominant coins are still bullish regarding the daily time-frame, with only BTC being overbought and Ethereum Classic looking suspiciously weak.

Ethereum is hanging on near the $300 level, trading with neutral momentum, while Litecoin, Monero, and Dash are still showing relative strength. NEO and IOTA continue to diverge from the rest of the market, but the difference is less prominent than last week, and especially NEO is showing encouraging signs.

NEO/USD, 4-Hour Chart Analysis

Technical Picture

The German index looks to be forming a short-term top near the 13,000 level as we expected, and the benchmark turned lower today in early trading, getting close to the short-term support level near 12,900. A break-below primary support would signal a likely test of the 12,650 level, although a support zone is found above that at around 12,825 as well. Shorts should hold on to their positions here, while bulls should wait for a move lower to enter new positions, with further support at 12,500.

DAX, 4-Hour Chart Analysis

Key Economic Releases on Wednesday

Time, CET Country Release Actual Expected Previous
2:30 AUSTRALIA CPI 0.6% 0.8% 0.2%
10:00 GERMANY IFO Business Climate 116.7 115.2 115.3
10;30 UK Prelim GDP 0.4% 0.3% 0.3%
14:30 US Durable Goods Orders 2.2 1.1% 2.0%
16:00 CANADA BOC Rate Decision 1.0% 1.0% 1.0%
16:00 CANADA BOC Statement
16:00 US New Home Sales 667,000 556,000 560,000
15:45 US Crude Oil Inventories 0.9 mill -2.6 mill -5.7 bill

Key Economic Releases on Thursday

Time, CET Country Release Expected Previous
13:45 EUROZONE ECB Rate Decision 0.00% 0.00%
14:30 EUROZONE ECB Press Conference
14:30 US Unemployment Claims 236,000 222,000
16:00 US Pending Home Sales 0.7% -2.6%

Featured image from Shutterstock

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Analysis

Technical Analysis: Bitcoin Up Again as Altcoins Mixed in Volatile Trading

Published

on

Bitcoin is at a new all-time high today, although the momentum of today’s move is far below from what we saw recently, and the coin only managed to reach a marginal record high yet again. BTC is now worth $300 billion, and it is still trading right at the short-term trendline, inside a rising wedge pattern that shows a clear momentum divergence.

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

With the short-term trend still being intact further gains are still possible, but as all the majors are overbought from a long-term perspective, we still advise investors to wait for a better buying opportunity before adding to their holdings. Primary support is still found near $13,000, with further levels at $11,300, $10,000, $9000, and stronger levels at $8200 and $7700.

BTC/USD, 4-Hour Chart Analysis

// -- 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 -- //

 XRP entered a volatile short-term correction after its two-day surge after giving a short-term sell signal yesterday, and the coin spiked back towards $0.60 before settling down just below yesterday’s highs. The long-term setup also turned overbought thanks to the almost 300% rally, and now investors should reduce their holdings, even as further gains are still possible. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.

XRP/USDT, 4-Hour Chart Analysis

(more…)

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Analysis

Cryptocurrency Analysis: Ripple Continues Rampage as Litecoin and Ethereum Enter Correction

Published

on

Ripple remained in the center of attention in the segment after breaking out to a new all-time high yesterday, and the coin almost doubled in value, climbing above the $0.80 level. The currency concluded a 6-month long consolidation pattern with the move after being the only major on a long-term buy signal in our trend model.

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

XRP gave a short-term sell signal today, while turning neutral regarding the long-term setup. Investors now shouldn’t add to their positions, although further gains are still possible, and reducing holdings somewhat is a good idea here. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.

XRP/USDT, 4-Hour Chart Analysis

// -- 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 -- //

While Bitcoin stagnated, and Bitcoin Cash jumped, Ethereum, Litecoin, Dash, and IOTA has been drifting slightly lower, although the recent gains are still mostly intact, and the basic setup in the segment is unchanged.

Litecoin fell below the $300 level after yesterday’s consolidation, and the coin faced strong selling pressure in the latter half of the session. The currency remains extremely stretched regarding the long-term momentum indicators, and although the short-term uptrend is still intact, a deeper correction is likely in the coming weeks, with key support levels found at $125 and $100, and weaker levels at $260 and $170.

LTC/USD, 4-Hour Chart Analysis

(more…)

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Analysis

Daily Analysis: Dollar Falls, Gold Jumps after Yellen’s Final Move

Published

on

Wednesday Market Recap

Asset Current Value Daily Change
S&P 500 2668 -0.02%
DAX 13125 -0.45%
WTI Crude Oil 56.65 -0.68%
GOLD 1258.00 1.35%
Bitcoin 16,100 -6.32%
EUR/USD 1.1842 0.73%

The Federal Reserve hiked interest rates as expected today, and although the central bank’s monetary statement was slightly more hawkish than expected, the market’s reaction didn’t reflect the much-anticipated move. The worse than expected Core CPI reading that underlined the low-inflation narrative weighed on the recently strong Greenback, while stocks were unchanged after decision and bonds gained ground as yields retreated.

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

EUR/USD, 4-Hour Chart Analysis

The major indices are hovering near their all-time highs with the DOW leading the way higher, hitting a new record for the second day in a row. While volatility Is expected to remain low as we approach the end of the year, market internals and valuation levels are still concerning from a long-term perspective, and stocks outside the US are also negatively diverging. The action in crude oil could be slightly more interesting as the commodity is starting to act in a slightly bearish manner after a grinding multi-month rally.

// -- 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 -- //

WTI Crude Oil, 4-Hour Chart Analysis

The Brexit process is still in the center of attention in Europe, although volatility took a nosedive on the old continent as well, and it’s unlikely that the Christmas period will be much different, given the predictable drop in volumes and trading activity. The date of the next election in the financially and politically troubled Italy has been set to March 4th next year, and the early date caused some turmoil in the countries assets, which dragged the Euro Stoxx 50 lower today, together with the DAX and the other major indices.

Cryptocurrencies

As the total market cap of the crypto-market crossed the incredible $500 billion mark, Ripple, NEO, and Ethereum made headlines with lofty gains in the face of the severely overbought readings elsewhere in the segment. While XRP and NEO are still not overbought from an investment perspective, Ethereum reached our final target for its break-out and triggered a long-term sell signal.

ETH/USD, 4-Hour Chart Analysis

The previously surging IOTA continued its correction, Litecoin consolidated in a relatively narrow range, while Dash, ETC, and Monero scored marginal new highs before turning lower together with BTC. The most valuable coin that has lost some of its momentum “mojo” in recent days fell back below last week’s highs, and that could mark a failed break-out and a start of the deeper correction that seems more and more likely.

BTC/USD, 4-Hour Chart Analysis

Key Economic Releases on Wednesday

Time, CET Country Release Actual Expected Previous
11:30 UK Average Earnings 2.5% 2.5% 2.3%
11:30 UK Claimant Count Change 5,900 3,300 6,500
11:30 UK Unemployment Rate 4.3% 4.2% 4.35
15:30 US Core CPI 0.1% 0.2% 0.2%
15:30 US Crude Oil Inventories -5.1 mill -3.6 mill -5.6 mill
21:00 US Fed Rate Decision 1.5% 1.5% 1.25%
21:00 US FOMC Statement

Featured image from Shutterstock

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Trending