Connect with us

Recommendations

Investment Recommendations May 10th

Published

on

DAX: Short-Term Sell (Update)

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

DAX, 4-Hour Chart Analysis

The German Index remains very close to its post-election highs just above the 12,750 level, although it failed to make progress in recent days. The benchmark is still clearly in overbought territory, and slightly above the upper boundary of its dominant advancing trend channel, pointing to a correction in the coming days. Our recommendation remains intact with the stop-loss level above the 12,800 level and the initial target zone between 12,400 and 12,500. The MACD is close to providing a sell signal at overbought levels.

// -- 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 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?

5 Comments

5 Comments

  1. MSNP05

    May 10, 2017 at 5:42 pm

    How to short sell a stock if I have not bought any ? Sorry for such basic question 🙁

    • Mate Cser

      May 10, 2017 at 5:50 pm

      Hi great question don’t worry 🙂
      Stock indices likd tvs DAX, S&P 500 are very easy to short on the most platforms (usually through CFDs, but that doesn’t matter for you) you just simply sell them when you don’t have an open position.

      Same goes for the biggest stocks. Smaller stocks might be trickier and sometimes costly,but I don’t recommend shorting smaller stocks as a beginner anyway.

      If you have a question regarding a specific platform, I am here to help 🙂

      Good trading!

  2. MSNP05

    May 10, 2017 at 5:58 pm

    Can I use fidelity or robinhood to short DAX? And your other recommendations. It would be nice to have a video tutorial on this. Thank you for teaching me.

    • Mate Cser

      May 10, 2017 at 6:53 pm

      I will look into those two brokers and get back to you with the best options soon!

    • Mate Cser

      May 11, 2017 at 1:47 pm

      So a quick update on shorting the indices and trading the recommendations:

      The S&P 500 is easy you can simply by the short-S&P 500 ETF with the ticker SE, or short sell the ticker SPY (this doesn’t work at Robin Hood).

      The DAX is trickier, as there is no short ETF so the only option with stocks is to short-sell the ticker EWG.

      Gold: the ticker GLD tracks the price of gold, you can buy and short sell it.

      Oil is harder to track precisely with stocks, the best way is to use the ticker USO which tracks WTI Crude.

      As Fidelity and Robin Hood doesn’t offer futures or currency trading, you won’t be able to trade commodities or currencies directly just through ETFs. Might be worth considering a broker with a more wide selection of assets (Interactive Brokers or TD Ameritrade for example). A good resource for trading ETFs is this website.

      Let me know if you need any more information!

You must be logged in to post a comment Login

Leave a Reply

Altcoins

Trade Recommendation: XMR/BTC Pair Throwback

Published

on

The XMR/BTC market (Monero) has been in downtrend on the hourly chart after posting a high of 0.0225 on December 6 and failing to hold critical support at 0.02. It went to as low as 0.0145 on December 8 before respecting RSI at 32 where it established support. The market used the new support level to rally and generate one higher low after the other. It recently attempted to reclaim support at 0.02 but was repelled by bears. Currently, the market is trading around 0.019 levels where it appears to have created another higher low.

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

Technical analysis shows a large reversal pattern in the hourly chart that can take the XMR/BTC pair to 0.025. Even though the market failed to breach resistance at 0.02, investors should not see it as a failed breakout. What we’re seeing is a throwback which is a temporary retreat in price. Throwbacks are common in breakout plays and are often seen as a bullish signal. The next time the market attempts to breach 0.02 resistance, it has a much better chance of breaking it with conviction.

The strategy is to buy breakout at 0.02 with immediate stop at 0.0189.

Hourly XMR/BTC Chart on Poloniex

// -- 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 -- //

As of this writing, XMR/BTC is trading at 0.018714 on Poloniex.

Summary of Strategy

Buy: breakout at 0.02

Target: 0.025

Stop: move below 0.0189 after buying breakout at 0.02.

Disclaimer: The writer 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 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

Altcoins

Trade Recommendation: FCT/BTC Bullish Reversal

Published

on

The market reach its all-time high back in June this year when FTC/BTC (Factom) reached 0.01463162. Unfortunately, the pair wasn’t able to sustain its momentum. It created a lower high several days later at 0.01066744 which signalled investors to take profits or cut their losses. As a result, the market tumbled and lost 93.17% in value from its all-time high. Such a tremendous loss would have created an atmosphere of despair in the market. Usually, that’s when the savviest traders come in.

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

Technical analysis reveals that the worst is behind the pair. FCT/BTC touched support at 0.001 on the daily chart twice and respected it on both occasions. This is a good indication that the market has found a reliable support level. In addition, hourly chart shows that a large reversal pattern is underway. The pair may have retreated when it nearly touched 0.002, but it generated a new higher low in the process at 0.00156566. The throwback is a bullish signal that enables the pair to gather momentum to break resistance at 0.002.

The strategy is buy on breakout at 0.002. Breach that level and the market reclaims 0.003. Sell that level because it is a strong resistance.

Hourly FCT/BTC Chart on Poloniex

// -- 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 -- //

As of this writing, FCT/BTC is trading at 0.001738 on Poloniex.

Summary of Strategy

Buy: breakout at 0.002

Target: 0.003

Stop: move below 0.0018 after buying breakout at 0.002.  

 

Disclaimer: The writer 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 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

Recommendations

Trade Recommendation: NZDJPY

Published

on

The daily chart gives us a sell signal. The price is at the possible reversal zone formed by the resistance level and SMA100. RSI is going to confirm price reversal in the overbought zone. The 4H gives us a trend reversal signal based on a bearish divergence. RSI confirms price reversal from the resistance zone. MACD supports downward movement. DMI allows opening short trades. Pending orders for sell should be placed at 78.70 with stop at 79.25 level. Profit targets are 78.25 and 77.60 support levels. Don’t risk more than 3% from your deposit in this trade.

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

Market: NZDJPY
Sell: 78.70
Stop: 79.25
Profit Targets: 78.25 and 77.60

Disclaimer: The analyst does not have investments in NZDJPY.

// -- 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 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