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Scores of Saudi Princes have been arrested over the weekend as part of a shock and awe campaign designed and orchestrated by the new Crown Prince Mohammed Bin Salman.

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This unprecedented shakeup is yet another surprising step in Salman’s plot to push the country toward radically conservative reforms.

Among the arrested is billionaire Al-Waleed bin Talal, who is also famous on the internet as being one of the most popular faces for meme generation. You may have seen this picture before…

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All jokes aside, this man is among the top ten biggest philanthropists in the world and has given a total of $3.5 Billion to charity. Of course, it’s easier to dig deep when you have deep pockets. Bin Talal’s estimated net worth now stands at approximately $17 billion.

As can be expected, perceived instability in the Middle East is driving up Crude Oil prices. West Texas Crude has now reached $56 a barrel for the first time since June of 2015.

@MatiGreenspan
eToro, Senior Market Analyst

 

Please note: All data, figures & graphs are valid as of November 6th. All trading carries risk. Only risk capital you’re prepared to lose.

Market Overview

Trump has promised the American people tax reforms for Christmas. Of course, this is the type of gift that gives more to Trump than to most Americans but it does seem that many will enjoy it.

There isn’t a lot of time to put this deal together in such a quick timeframe though. The Senate needs a total of 60 people to approve the bill for it to become law. Assuming that all 52 Senate Republicans vote ‘aye’ they still need to convince 8 Democrats to switch sides.

Rather than oversee this directly, Donald Trump, today will be out golfing with his good buddy the Prime Minister of Japan, Shinzo Abe. This as the first leg of the President’s massive Asia tour. On second thought, it might be better to leave the Senate to decide amongst themselves. We watch closely as Trump romps around the East and meets with his counterparts there, possibly even with Putin.

The meeting in Japan does seem to be bearing fruit already. Shinzo Abe’s government has already issued a harsh statement against North Korea and will soon be ramping up sanctions against the rogue almost nuclear state. The statement didn’t do much to market prices though and was overshadowed by an announcement from the Bank of Japan this morning.

Bank of Japan Printing Strong

It seems that the BoJ is still worried about inflation and similar to the Fed is wondering when it will come. Unlike the Fed however, Haruhiko Kuroda is willing to continue with Japan’s massive stimulus methods until they are able to squeeze inflation into the economy.

This gung-ho approach to monetary policy sent the Yen to its weakest level against the US Dollar since March. Looking at the USDJPY chart we can see that the range of the past 8 months (blue lines) is now being extended. So far today, we’ve already seen a bit of a reversal back into the range but it’s still unclear if the breakout will resume or if it will reverse back to the average prices (yellow line = 100 day moving average).

Volatility is Dead

Meanwhile, market volatility has again fallen to all-time record lows. Following the slightly disappointing jobs numbers from the USA on Friday the VIX volatility index managed to close at it’s lowest point since the index was created in the early 1990s.

This is certainly a defining sign of the new market conditions we live in. A market flush with cash and zero volatility.

Crypto Zeros

Celebrations rang out across the eToro network over the past few days as Bitcoin continues to break high after record high. The current ATH now stands at $7,574 a coin and we’re seeting a bit of a pullback this morning.

In a single week from October the 29th to November 5th, the price has moved a record $1,919 per coin. To think that it was trading at $1,000 at the start of the year. A pullback at this point would not be surprising. Even if long term projections have it reaching the moon by 2020.

The bigger milestone is that of the entire crypto market. The total value of all cryptocurrencies currently in circultion is now sitting at a record $200 Billion!!

Not a bad year but still, hardly unexpected. For those who belive firmly that blockchain technology will soon replace finance as we know it and even take over many parts of the internet in the next few years, this market is still largely undervalued.

Let’s have an amazing week ahead!!

This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.
The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.

Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.

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Analysis

Long-Term Cryptocurrency Analysis: All Majors Stretched as Ripple Finally Breaks-Out

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Although the previous leaders of the rally started to correct or at least consolidate in the wake of the overbought long-term setups, another batch of coins turned exponential, with Litecoin, Ripple, and Ethereum all registering lofty gains this week. Bitcoin, Monero, and Dash have been holding up well, and even drifted to new marginal highs during the period, while Ethereum Classic had a more volatile week, before moving to new highs today.

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XRP left the broad trading range that has dominated its market since May, and surged to new all-time highs while almost quadrupling in the process. As the coin was the only major on a long-term buy signal according to our trend model, and the move triggered a sell signal on Thursday, now all of our tracked coins are on sell signals.

Ripple could be in for further short-term gains but long-term investors should reduce their positions after this week’s spike. Support levels are found Major at the prior high near $0.4250 and in the $0.30-$0.32 range.

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XRP/USDT, Daily Chart Analysis

IOTA, which has been leading the market higher before is down by more than 30% off its all-time high, but given the exponential move before, an even deeper correction is likely in the coming weeks, and investors should wait until a more favorable setup to add to their positions. Strong support is only found at $3 and $1.5, but potential Fibonacci support is at $2.35.

IOT/USD, Daily Chart Analysis

Let’s see how the long-term charts of the other majors look this weekend.

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Analysis

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

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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.

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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

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 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

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Analysis

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

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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.

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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

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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

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