Shares/Stock Forex and stock news

SebsCubs

New member

What is happening?​

The Senate of the US has voted for an amendment to President Biden’s infrastructure bill. The Senate allows for 30 hours of debate following a vote. This means that the amendment can be debated up until Tuesday morning, after which it would be signed into law.

Senate deliberations continued over the weekend over a $1 trillion infrastructure bill, with a particular focus on how the bill could impact the world of cryptocurrency. The bill includes a tax provision that outlines plans to raise about $28 billion for that $1 trillion package through taxes from crypto transactions. The bill identifies a “broker” as anyone “responsible for and regularly providing any service effectuating transfers of digital assets on behalf of another person,” and anyone thus identified would be subject to tax reporting requirements.

Cryptocurrency investors are unhappy with the new tax provision. Not only it defines miners and cryptocurrency wallet makers as brokers, but it also obliges companies to report information about individuals even if they are not customers. Passing the bill will have a bloody impact on the cryptocurrency market, as well as on all companies somehow connected to it.

More on Coinbase​

Coinbase now supports Apple Pay when buying cryptocurrency, meaning that users can buy with debit cards that are linked to Apple's system. Coinbase is the first crypto exchange to offer instant transactions via Real-Time Payments (RTP), enabling customers in the U.S. with linked bank accounts to instantly and securely cash out up to $100,000 per transaction.

It is important to notice that Coinbase makes the most of its profit in the most volatile markets, due to increased trading volumes and therefore increased amount of fees collected. Nevertheless, Coinbase stock correlation with Bitcoin price is hard to underestimate. Such an effect is caused by the nature of Coinbase as a cryptocurrency exchange and the majority opinion that everything somehow linked to crypto needs to correlate with Bitcoin price movements.

Technical analysis​

Right now, Coinbase is breaking through resistance lines, after forming a “triple bottom” reversal pattern. RSI is also looking quite bullish. If the news about the infrastructure bill won’t crash the price, the next resistance line will be at $300, a round number, and a Fibonacci expansion 161.8 line. Otherwise, there is a big support area between $250 and $235.Bitcoin is moving in a channel, that has been already broken once. RSI has formed a bearish divergence, so it’s dangerous to open a long position now. In case of a price falling, the main support area is $40000-$39000.

BTC+COIN3.png


Reference: FBS (09.08.2021) How does new infraestructure bill affect coinbase? FBS analytic news.
 

SebsCubs

New member

Current news:​

  1. Reserve Bank of New Zealand will likely deliver up to two interest rate hikes before the end of the year.
  2. Risk-off flows strengthening in the NZD/USD pair.
  3. Chinese economic outlook downgrade, inflation causing concern.
The risk-sensitive New Zealand Dollar weakened overnight as global concerns over the highly transmissible Delta Covid variant weighed on sentiment. The US Dollar is also weighing on NZD as rate hike bets rise following last week’s NFP report. Moreover, Goldman Sachs downgraded its growth forecast for China. Analysts at the bank see Covid-induced lockdowns and social distancing measures dragging on spending and consumption.

Why is it important?​

Foreign exchange markets are presently focused on central bank interest rate normalization, favoring the currencies belonging to those central banks which will lead the pack. July 14, 2021, RBNZ (Reserve Bank of New Zealand) said it will reduce monetary stimulus by ceasing quantitative easing. It was the first sign of a future interest-rate increase. Shortly after, New Zealand’s unemployment rate was released, with actual results being less-than-expected by as much as 0.4% (4% vs. 4.4%, this is a good sign to an overall economic situation).

The labor market report is the latest sign that the economy is growing faster than its capacity, and that the Reserve Bank could start to raise the official cash rate to keep a lid on price pressures. Annual inflation surged to 3.3% in the second quarter, breaching the central bank’s 1-3% target range.

If RBNZ continues normalizing interest rates by raising them, we would expect strong fundamental support for the New Zealand Dollar. August 18, RBNZ will release several essential market reports. Among them are the Official Cash Rate, RBNZ Monetary Policy Statement, and Rate Statement. Considering the facts given, we’re expecting rate hikes as well as NZD strengthening against other currencies.

However, while the Chinese economy is vital to global growth and capital markets, New Zealand is particularly susceptible due to its economic and trade proximity. Covid related risks are also present, although the market participants ignored Delta's initial spread. Make sure to check our Economic Calendar regularly!

Technical analysis:​

Looking at the NZD/USD live chart we can see a support line at 0.690 and we have a resistance between 0.705 and 0.710, where the “death cross” bearish pattern has emerged.Considering the newfound pessimism for the economic outlook in China, the New Zealand Dollar may remain capped near current levels. Still, NZD bulls may be able to take advantage of the situation. The Australian Dollar typically displays a higher correlation with China’s economy, which can open the door for AUD/NZD to underperform.Currently, AUD/NZD pair has a support line at 1.04594 and resistance at 1.10595, right at 38.2 Fibonacci retracement level.

NZDUSDDaily.png




Reference: FBS (10.08.2021) NZD is expiriencing challenges with forecast. FBS analytic news.
 

SebsCubs

New member
Gold managed to recover over 50% of its flash crash that occurred at the beginning of this week. After stabilizing above 1725, we issued a long signal at 1730 two days ago, and gold managed to rise all the way to 1759 until this report is released. In the meantime, it would be wise to move the stop to our entry to protect our position from any possible loss, while a weekly close above 1750 and preferably above 1760 would be another bullish sign not only on the short-term but on the medium-term as well.

XAUUSDDaily 13 Aug 2021.png


Reference: FBS (13.08.2021) Gold Trying to break higher. FBS analytic news.
 

SebsCubs

New member
Throughout last week’s trading, gold traded within a tight range, but it also managed to hold well above its 1775 support area until the end of the week, while the technical indicators has improved over the past few days, including the RSI indicator, which is now trading above the 50 mid-point and broke its daily down trendline, which support our medium-term long positions, the one issued few weeks ago at 1730. With that being said, it would be wise to move our stop loss for this week to 1765 USD/Oz to protect some of the profit, while further stabilization above 1775 may clear the way for another test of 1800 USD/Oz in the coming days.

XAUUSDDaily.png


Reference: FBS (23.08.2021) Gold holding well above 1775. FBS analytic news.
 

SebsCubs

New member

About Conflux

Conflux is an open blockchain network with an economic incentive-based governance mechanism designed to reward community members who contribute to ensuring a safe, stable, and predictable environment for economic activity. Conflux is focused on developing decentralized applications (dApps), creating smart contracts, and making simple payments. In simple words, Conflux is an exact copy of all known Ethereum, but more scalable and flexible.

Conflux history

Conflux is headquartered in Beijing, China. The Financial office was registered in Singapore in 2018.

Developers raised initial funds by selling the part of 1 billion CFX tokens issued on the Ethereum blockchain. After the launch of the main Conflux network, the developers generated 5 billion CFX tokens (most of them are still frozen) and launched the mechanism of additional emission of CFX coins (internal tokens of the Conflux network) available to earn by miners and stakers.

CFX is the main fuel of the Conflux platform and is used as a tool to interact with solutions in the Conflux Network ecosystem. Major CFX holders include venture giants such as Sequoia China, Huobi Group, Shunwei, and Rong 360.

Token holders receive a reward for their storage depending on the staking time.

Conflux features

The Conflux network has many advantages.

  • The throughput is 4000 transactions per second (for comparison, Ethereum has 15).
  • Proof of work algorithm, which means the cryptocurrency is available for mining on video cards.
  • Unlike many other blockchains (for example, Bitcoin, Ethereum), in which blocks are generated sequentially, one after another, in the Conflux blockchain network, parallel construction of a blockchain and transactions is possible.
  • Ethereum virtual machine support, so smart contracts can be ported from Ethereum to Conflux Network.
  • Block generation time - 2 blocks per second (172, 800 blocks per day).
  • Annual inflation is at 8.83%.


Conclusion

The main goal of the Conflux blockchain network is the development of digital technologies. Creators used Bitcoin and Ethereum’s developments as well as other innovative technologies to create a high-quality cryptosystem.

Despite this, Conflux is a young project, comparing with such giants as Litecoin, Bitcoin, Ripple, and Ethereum, which already recommended themselves as a reliable cryptosystem. That’s why we suppose the risk of trading CFX remains on a high level and suggest trading more sustainable coins such as XRP, ETH, BTC, and LTC.

Reference: FBS (14.09.2021) Conflux: Ambitious chinise project. FBA Analytic news.
 

SebsCubs

New member
GBP/USD is currently trading within a new selling zone on both short and medium-term charts. The zone stands between 1.3915 and 1.3990 which represents its 50% and 61.8% of the recent selloff from June 1st top to July 20th bottom. This area remains solid since last week, while we wait for the Bank of England's decision later today. Yet, it would still be worth it to risk a short position with a stop above 1.4020, especially after the pair failed to break above its 100 and 50-day MA’s yesterday, while the technical indicators remain around the 50 mid-point (RSI). On the downside view, the first initial target would be 1.38 which could be seen later today, especially if the BoE decides to avoid tapering discussions.

GBPUSDDaily 5 Aug 2021.png




Reference: FBS (05.08.2021) GBP/USD Selling Zone! FBS analytic zone.
 

SebsCubs

New member

What happened?​

It’s unbelievable but China’s government prohibited all transactions with cryptocurrencies (yes, even Bitcoin) and promised to stop illegal crypto mining. While the rest of the world is taking steps to include crypto into the economy, China denies it.

What does China mean for crypto?​

China is home to a huge part of the world’s crypto miners. As we know, mining requires a lot of energy resources and it prevents China from curbing greenhouse-gas emissions. Bloomberg says 46% of the global hash rate (computing power used in mining) occurred in China in April.

What will be the circumstances?​

It is a negative factor for the whole crypto market in the short term. Today, BTC/USD has dropped by 3168 points in one day. The downtrend is likely to stay with us for longer. So good that FBS traders can open both buy and sell trades. Besides, it can be also a negative factor for chip producers such as Nvidia and AMD as demand for GPUs is going to drop in China and press the prices of GPUs down.

Tech outlook​

Bitcoin has dropped to the support level of $41,000, which lies at the 50-day moving average and the 50% Fibonacci level. It makes this level a strong barrier, which the cryptocurrency will struggle to break on the first try. If it manages to cross, BTC/USD will plunge to the 61.8% Fibo level of $38,000. Resistance levels are $44,000 and $45,500 (the 200-day moving average).







BTCUSDDaily (1).png


Reference: FBS (24.09.2021) Crypto becomes illegal in China. FBS analytic news.
 

SebsCubs

New member
Like oil, natural gas is a product of decomposed organic matter, typically from ancient marine microorganisms, deposited over the past 550 million years. Often, gas and oil are neighbors, who are located deep under the ground. Because of that, their prices sometimes correlate. But for the last several weeks gas was skyrocketing at an enormous pace. It has gained more than 17% from August 18. What is the reason for such moves and how can we earn on global gas trading?

## Latest news:

  • Hurricane Ida shut down oil and gas production.
  • OPEC+ meeting is expected to stall oil production increase.
  • Natural gas prices have risen sharply over the past week, with futures hitting two-year highs due to rising inflation and continued production cuts.

## What affects the gas price?

Assessment of the Natural Gas market should start with basic points. Usually, there are a set of reasons for the commodity price to change:

  • The law of supply and demand regulates prices, as it does in nearly all commodities.
  • As a longer-term general trend, the supply of high-quality oil and gas is fixed while global demand is increasing with a rising population and economic growth.
  • There is a growing consensus that the world is facing a structural shift, driven by the energy transition and companies’ desire to reduce their carbon footprint.

Let’s go through every reason to create a natural gas price forecast. As for now, demand isn’t showing any signs of slowing down. Between 2009 and 2020, global gas consumption surged by 30% as utilities and industries took advantage of booming output. Even in the covid-19 environment, experts are expecting the demand to rise even more in the next 10 years.

As for ecological reasons, companies and countries are implementing gas in their electrical supplies. The shift to natural gas can be done relatively quickly and cheaply while having a significant impact on lowering emissions. Natural gas is the cleanest burning fossil fuel and emits almost 50% less CO2 than coal. Meanwhile, non-fossil-fuel alternatives such as wind and solar are at a relatively early stage to produce enough energy and offer a cheap deployment.

## Gas’ bright future

Already, there are signs around the world that supplies will fall short:

  • Beyond a massive expansion in Qatar, few new liquified natural gas (LNG) export projects have been started since 2020.
  • Government is uncertain about emissions-reducing policies, thus, producers have been less willing to sign long-term supply deals.
  • Key pipeline projects struggle to move forward, and drillers are under pressure from investors, that want to avoid a surplus of gas. Moreover, major producers of natural gas are having too much power in their hands. That gives them the opportunity to control prices remove weaker competitors.

Even if the prices will rise even higher over the next decade, it won’t be enough to drastically reduce demand for the fuel. All we can say for now is that gas is increasingly less dependent on oil prices and this trend is going to continue.

## Technical analysis

As for the chart, US natural gas is several days away from volatility increase. For now, the price is consolidating in a triangle and the breakout will decide its fate. In case of further growth, it is highly likely for the RSI divergence to form. That would be a sign of a pullback.

XNG/USD H4 chart

Support: 5.60; 4.94; 4.20

Resistance: 6.30; 6.50; 7.00

To trade natural gas, we need a trading strategy. And to have one we need to better understand the asset. Here are some tips for traders that will surely help you.

  • Look through [short-term energy outlook] articles on our site to be in touch with the latest trends.
  • To calculate your risks, it’s wise to check
  • Analyze related assets, like Brent and Crude oil. The price tends to correlate between them.
  • Use technical analysis and define the support and resistance levels for the price.

If to perform trade analysis via technical indicators, the best for gas right now is RSI, because it can show you the divergences between the indicator and the price and spot possible reversal earlier, than others.

No growth is everlasting, and though the gas price has been skyrocketing for the last weeks, most of the time it lacks the volatility. So when this “Gas season” will be over, consider looking at the [cryptocurrency] because it’s much more volatile. Also, 24\7 crypto trading means that you don’t need to wait for the market opening, just open your FBS Trading Platform or Meta Trader and enjoy the possibilities of a [crypto trading account]

Now you know how to trade natural gas, so what are you waiting for?

View attachment 307024

Reference: FBS (05.10.2021) Gas lights up. FBS analytic news.
 

SebsCubs

New member

What affects oil price?

Oil is one of the most important assets, which presents the whole economic situation in the world. Just like the prices of most assets, oil price depends on the demand-to-supply ratio. During periods of economic growth, countries increase demand which leads to price gains. On the contrary, when the economy enters a regression phase demand drops and price follows it.

How to trade crude oil online?

There are two ways of trading crude oil online. You can trade contracts for difference (CFDs) or futures. While CFDs display the price in real-time, futures predict a future price change. Futures are the most volatile and risky instruments as they can be manipulated by traders with high capital. During March 2020 collapse Brent futures have been trading under the $0 level, while CDFs only reached $17. That is why we believe that trading contracts for difference is less risky.

You can trade oil and energies contracts for difference with FBS. Learn the contract's specifications and pick the best option for your trading strategy!

When is the best time to trade oil?

Oil price is influenced by the Organization of the Petroleum Exporting Countries, that is why the meetings and statements of this organization make a huge impact on an oil price movement. Their statements raise oil price volatility, but moreover, they define the future trend. That is why the best option for trading oil is to wait until one of this OPEC’s meetings or statements and follow the trend.

Another highly important data, which usually influences the price, is the US crude oil inventories data as the United States is the largest exporter of crude oil. Bigger reserves mean that the oil consumption stays under pressure, which is the first sign of upcoming economic stagnation. On the other hand, lower-than-expected reserves data points traders to the fact that the consumption grew in the past and the necessary replenishment is needed. In this case, additional purchases will stimulate oil price increase.



OPEC+ said it had “reconfirmed the production adjustment plan”, which referred to its previously agreed decision to add 400,000 barrels per day to the market for November. The recovery in global oil demand from the coronavirus pandemic has been quicker than many expected, while global supply has been disrupted by hurricane outages and low investment. As long as these two factors remain unchanged oil will gain constantly.

XBRUSDH4.png






Brent's price is moving in the rising channel. The bearish divergence occurred on the RSI chart, that is why expect a tiny correction to the $79.8 support level. After that, the price might reverse and head towards $86.3, where the 2018 high locates. To break this level buyers need to get some strong news, which will act as a buy signal. Without them, the price will get rejected from the $86.3 level and solid correction will happen.



Reference: FBS (06.10.2021) How to trade oil. FBS analytic news.
 

SebsCubs

New member

What is happening?​

Just look at the charts above – the Canadian dollar has skyrocketed! Such strong growth has been caused by several reasons.

First, oil prices have gained from the global energy crunch. Crude oil has hit the highest level since 2014 as the demand is growing ahead of winter, while OPEC+ doesn’t rush to increase output significantly. Canada is one of the world’s largest oil producers and its currency has historically positively correlated with oil prices.

Second, Canadian employment figures came out better than analysts forecasted on Friday. It can signal another taper from the Bank of Canada later this month, which may push the CAD up. Just to remind you, the BOC was the first bank that tightened the policy after the Covid-19 crisis. Thus, it’s quite reasonable for the bank to continue tapering after a strong job report. Meanwhile, the US has revealed the worse-than-expected NFP numbers. Canadian Dollar strength and US Dollar weakness pressed USD/CAD to its lowest level since July.







Tech outlook​

USD/CAD has broken through all the moving averages and the support line while moving down. It has stopped ahead of the support level of 1.2445 – the July lows which the pair has failed to cross and reversed up. Let’s wait for a breakout. If it occurs, the pair is likely to drop to the psychological level of 1.2400. However, before the breakout happens, we might see a pullback to the 200-day moving average of 1.2500.
3.png


Reference: FBS (11.10.2021) All is good for canadian Dollar. FBS analytic news.
 

SebsCubs

New member
Over the last 18 months, governments have printed an unbelievably large amount of money. And while these measures help the economy to rise and thrive, the consequences can be severe for everyone. Let’s discuss, what role do banks have in all this and how can we forecast their future actions and stock price’s prospects.

Banks during the Covid-19​

As one of the crucial members of society, financial institutions have several main functions to maintain the economy in a good state. During the pandemic, banks have been active on a number of fronts. Among them are:

  1. Providing cash flow support. Governments implementing lockdowns mean businesses and individuals are being starved of income. Expenses, however, still have to be met. Since the biggest cash outflow for individuals or small and medium-sized enterprises (SMEs) tends to be for a mortgage or some other loan, banks have announced moratoriums on interest and principal payments until the year-end. This is affecting the overall banks’ income badly, but government helps banks by printing more money.
  2. Change of lending rules. In 2019 interest rates on bank credit to the private sector in the US was 5.5%. Now it is around 3.25%. The Government has stepped in to cover risk up to 80% of some SME loans. This improves a bank’s ability to give a loan to the borrower.
  3. Helping customers do their banking digitally. With employees working from home, it makes no sense to still have to go to the branch to carry out banking transactions. Also, it is a safety issue.
In a nutshell: banks were trying to help SMEs amidst lockdowns and sharp reduction of economic activity. Their goal is to maintain as many payrolls as possible and keep the unemployment rate under control. That’s why we are watching after NFP data closely, it reflects broad market conditions.

The post-pandemic era​

Banks’ stocks have risen for the last year and a half because of:

  • Government, that printed trillions of dollars and stimulated the economy.
  • Banks’ investment activity. The stock market soared, alongside banks’ profit.
  • The rapid growth of the deposits in the banks. Only in Bank of America the overall amount of deposits have increased by 20% for the last year and has almost reached $1 trillion.
Moreover, there are prospects for banks to gain even more. Accelerating economic recovery contributes people to borrow more money, though, not as much as expected. As the result, banks gain the potential to increase their buyback programs. Morgan Stanley and Wells Fargo were among the banks that said in June they would increase dividends and buy back more of their stock. Collectively, JPMorgan, Bank of America, Wells Fargo, and Morgan Stanley have announced they’ll repurchase $85 billion in shares.

It would be weird not to mention the consequences of rate hikes. As the banks now have enormous sums of money in loans, and floating rates are used widely, raising the federal funds rate by 1% will result in billions of dollars profit in a matter of a year. And we know that rate hikes are just a matter of time.

What now?​

The nation’s biggest banks are about to report profits, and for behemoths including JPMorgan Chase and Goldman Sachs they are expected to fall when the banks report third-quarter results this week. As we can see, rapid growth in S&P 500 earnings will decrease over time as tapering comes into full strength.
This week, 6 biggest banks will release their quarterly earnings report, including:

  • JPMorgan Chase (Oct 13), expected to lose 3.7% revenue growth,
  • Bank of America(Oct 14) expected to lose 0.2% revenue growth,
  • Citigroup(Oct 14), expected to lose 15.5% revenue growth
  • Morgan Stanley(Oct 14), expected revenue growth at around 11.8%
  • Wells Fargo(Oct 14), expected to lose 9.0% revenue growth
  • Goldman Sachs (Oct 15), expected to lose 8.8% revenue growth
Notice, that you can trade these banks’ stocks with FBS!

It’s understandable for banks to lose the pace of growth. Previous reports were positive due to stimulus, but the time of trillion-dollar money printed out of thin air is gone. Current supportive measures just aren’t strong enough to increase banks’ revenues compared to last quarter. What is in our sphere of interest, though, is Morgan Stanley, which is expected to increase revenue. We suppose the following reasons:

  • The growth was complemented by a rise in wealth management revenues. Notably, the wealth management total client assets received a big boost from the acquisition of E*TRADE in the last quarter of 2020 and may continue now in the light of unending growth in broker companies’ clients.
  • Asset management and related fees increased because of the Eaton Vance acquisition and higher AUM (Assets under management).
If to say for the whole financial industry, the end of the pandemic will keep the Covid-19 legacy. We are talking about the transition to online banking and the increase in the number of retail investors and traders, who are trying to deal with the market by themselves. This, in turn, will help the banks to refrain even against tapering and rates hikes.

Morgan Stanley daily chart

Resistance: 106.0; 109.0; 125.0

Support: 96.5; 91.0; 87.5


At the end of the day, banks anticipate rate hikes, so future tapering doesn’t seem to be so crucial for them. For now, expectations from the reports are mostly negative (Morgan Stanley is a reasonable exception) due to stimulus reduction. What’s more important is the bank’s forecasts of their future revenues. We will hear from them shortly. As for now, it is a perfect opportunity to consider increasing the bank’s share in your investment portfolio.

MSDaily.png


Reference: FBS (12.10.2021) It's all about those banks. FBS analytic news.
 

SebsCubs

New member
The stocks of the vaccine producers have gained a lot during 2021 due to the wide vaccination campaign around the world. Still, the Covid-19 pandemic is still not over as the virus is mutating and the scientists need to create new and new vaccines. What does it mean for traders? A great opportunity to invest in pharma stocks especially the ones engaged in the production of vaccines.

Moderna​

Moderna has joined the S&P 500 index this year. It skyrocketed to almost $500 – the all-time high on this news, but then dropped back to $300 amid the broad market correction. Moderna has recently submitted its COVID-19 booster shots for adults to the FDA. If officials approve it, the stock price of Moderna will rocket! The first resistance level lies at the round number of $350.00. If the stock manages to cross it, the stock may jump above the 50-day moving average at $400.00. Support levels are $295.00 and $250.00.

AstraZeneca​

Many hedge funds have added AstraZeneca into their portfolios. Among them are Fisher Asset Management, GQG Partners, and other heavyweights. Apart from producing vaccines against Covid-19, the company produces other medicines and also working on an advanced breast cancer treatment. The key level of $8750 acts now as support, while it was acting like resistance during August. Thus, we might expect the price to retrace to this level and then reverse up to $9000. When AstraZeneca breaks above this level, it will rally up to $9250

Johnson & Johnson​

JNJ sells pharmaceuticals, consumer health products, and many well-known consumer goods (Johnson's Baby products, Acuvue contact lenses, etc). Apart from that, it’s a vaccine maker and quite a successful one! The FDA claimed that the second dose of the JNJ Covid -19 vaccine is effective two months after the first. As a result, the JNJ stock skyrocketed.

The stock of JNJ has failed to cross the psychological level of $160.00. If it manages to break it and the high of October 7 at $162.00, we might expect the downtrend to change to an uptrend. So far, the stock price is moving in the descending channel. Still, if we look at the weekly or monthly chart, we’ll see that it’s just a correction in the long-term uptrend. Thus, wait for the confirmation of the change of a trend.

MRNADaily.png




Reference: FBS (15.10.2021) Top Pharma stocks to buy now
 

SebsCubs

New member

Netflix​

Netflix published better-than-expected earnings results for the third quarter and also surprised investors with the huge subscriber growth due to the popular "Squid Game". Netflix added 4.38 million subscribers, while Wall Street analysts forecasted 3.86 million. Wow! However, the market reaction was mixed. Yesterday's session finished in a goalless draw: nor bears neither bulls took control. The candlestick closed with no shadow, which means the opening and closing prices were equal.

Why did Netflix drop on good results?

In short, ‘buy the rumor – sell the fact’. All investors knew that the “Squid Game” has astonishing popularity, that’s why they were expecting good results from the company and priced in the good outcome well ahead of the release. When the actual number was known, the stock fell.

On the daily chart, we can notice the bearish divergence, which means the stock price can fall in the short term. It may correct down to the 50-period moving average of $610, which should support the stock from falling further (it has done that several times before). Still, the long-term trend remains bullish.

Tesla​

Tesla has reported better-than-expected earnings results for the third quarter. EPS: $1.86 vs the forecast of $1.52. Notably, the report marked the 9th quarter of profit in a row. Earlier, Tesla announced it delivered 241,300 electric vehicles globally in the third quarter, which was Tesla’s record number for quarterly deliveries.

The Tesla stock tends to rally (look at the long green candles at the chart below) ahead of the earnings releases but then drops when the actual numbers are known. Thus, today, the stock can fall in the short term. However, it is going to gain from such good results in the long term as it showed investors that it is doing its business great.

Tesla was rallying so rapidly as it even broke the upper line of the channel. Now it’s just below the resistance level of $880.00. If it manages to break it, it can rocket to the psychological mark of $900.00.

JNJ​

The pharma giant Johnson & Johnson published earnings that beat analyst expectations, sending its price soaring (look at the long green candle in the chart). The Covid-19 remains the main threat, that’s why JNJ is likely to gain in the 4th quarter due to its vaccine. Besides, the Food and Drug Administration authorized Covid-19 vaccine booster shots made by Johnson & Johnson, which is really great for Johnson & Johnson.

The stock price of JNJ has failed to cross the resistance zone of $165.00-166.00 (the 200-day MA and the 38.2% Fibo level). If it manages to cross it, the way up to the 50- and 100-day MAs at $168.00 will be open. Support levels are $163.00 (the 23.6% Fibo level) and $160.00.

JNJDaily.png


Reference: FBS (21.10.2021) Earning overview. Tesla, Netflix, IBMS. JNJ.
 

SebsCubs

New member

China released GDP: good or bad?

15 July, China released the data about the national gross domestic product. GDP growth in the 2nd quarter of 2021 was 7.9% comparing with the same period of 2020. The growth rate in the 2nd quarter was slower than the 18.3% growth registered in the 1st one. This fact describes how much the Chinese economy had suffered from COVID-19. Rapidly recovered China’s economy basically reaches pre-covid trend.

The growth rate of the world's 2nd largest economy has slowed down. However, it is still on track to reach 6% annual growth. Retail sales in June rose 12.1% year over year, which means that people are still spending money, mostly on restaurants and catering services. At the same time, the production of steel and cement decreased in June from the previous month. The combination of these factors suggests that China’s economy is going to rely more on consumer demand. This fact fueled optimism that China’s economic growth is becoming more balanced.

How about COVID-19?

On Wednesday, the National Health Commission reported that the country has vaccinated at least half of its population at least with one dose as 1.4 billion vaccines have been used. For now, the main goal of China’s anti-Covid-19 campaign is the vaccination of teenagers between 12 and 17 years old by the end of October. As the National Health Commission reports the main goal is to vaccinate at least 70% of the population by the end of the year.

What does it mean for traders?

As China’s economy is 2nd largest in the world it makes a significant impact on the number of assets from the trader’s list. First, the growth of China’s economy has a significant impact on the oil demand in the world.

Second, China is the main export destination for goods from Australia and New Zealand. Chinese economic growth increases the demand for key goods from these countries which leads to an increase in capital flow and respectively forms a tendency for AUD and NZD to appreciate against a basket of currencies. Last but not the least, traders from all over the world use HK50 and Alibaba stocks to invest in China’s economy. Let’s check what is going on with these assets in the next paragraph!

Technical analyses of HK50 and Alibaba stock price.

On the daily HK50 chart, the bullish flag has occurred. The price bounced off the bottom line of the flag and broke through the 200-day moving average. Right now, it is heading towards the top line of the flag, which is 29100. If the price breaks this resistance level the target will be 31000. This is a great opportunity to open a long position! On the flip side, in case the price breaks the support level of 26900, it will aim towards 24900.

ALIBABADaily.png




Reference: FBS (16.07.2021) China: the worst has happened? FBS analytic news.
 

SebsCubs

New member
First Friday of July is here! This means we'll be seeing a new NFP broadcast at 15:30 MT (GMT + 3)! Why is everyone so excited about this data? The reason why it's cool and easy - it makes the US dollar so uncertain! What is the NFP? Non-farm payrolls (NFP) shows how many people worked the previous month, excluding those who worked in the agriculture industry. It emerges with two important hints: unemployment rate and average income every hour. Combination, they represent strong fuel for American currency. Last month, NFP's actual figure came out at + 559 K (under estimated + 645 K). It disappoints traders and weakens the US dollar over any other currency. This time, as analysts expect non-farm payrolls to increase by 700 thousand, we might see a completely different picture! Remember:

If real data is better than predictions, USD will increase!

Alternative scenario will lower the US dollar down.

We recommend you consider EUR / USD, USD / JPY, and GBP / USD to trade in this event! How about you? Do you already have a strategy to trade the NFP?

gold h4.png
 

SebsCubs

New member
Gold managed to regain above its key support area mentioned in our previous reports at 1769 USD/Oz, which represents its 61.8% Fibonacci of the recent rally (April – June). On Friday, Gold advanced further nearing 1790 USD/Oz, while the technical indicators has turned slightly higher. This confirms our bullish outlook in the short and medium terms. In the meantime, we prefer to long gold between 1780 and 1770 USD/Oz with a stop at last week’s lows, as revisiting that low would change the major outlook once again. On the upside view, Gold needs to break above 1800 USD/Oz in the coming days, which would be another positive factor in both short and medium terms.

2.png




Reference: FBS (05.07.2021) New Gold Signal. FBS analytic articles.
 

SebsCubs

New member
GBP/USD has managed to rise for the third trading day in a row including today’s Asian session, while the daily technical indicators are moving higher gradually. This supports the idea of a short-term retracement to the upside before the downtrend resumes later. In the meantime, GBP/USD is nearing a new selling zone which stands at 1.3950 and represents its 100-day MA followed by the psychological resistance at 1.40. This is the area where we will be interested in shorting GBP/USD not only on the short-term but on the medium-term as well, despite the fact that GBP/USD managed to hold above its uptrend line on the daily chart. We believe that this is a short-term play before the downside pressure resumes especially with the continuous estimates of a sooner tapering by the Federal Reserve.

GBPUSD d.png




Reference: FBS (06.07.2021) GPD/USD Near supply Zone. Fbs Articles.
 

SebsCubs

New member

What happened?​

China’s tech companies have lost $823 billion in total since their February highs. The losses are huge! What’s the reason? Beijing expands its crackdown on the technology sector and this fact worries investors as the selloff may be far from over.

China’s authorities tighten the rules for the country’s largest companies, especially for those who are listed overseas or looking for selling their stocks abroad. It happened after Didi, China’s Uber, went public in the US. That triggered the sell-off of other China’s tech giants such as Tencent, Alibaba, JD.Com Inc., Baidu, and Meituan.

“The selling will continue in the third quarter. The measures from authorities will keep coming,” said Pegasus Fund Managers.
Most investors are going to take a “sell first, talk later” approach to reduce risks in their portfolio, claimed United First Partners.
“In case the market sentiment goes into extreme pessimism and we see the Hang Seng Tech Index down 20% from here, it could be a rare opportunity to buy some fast-growing Chinese internet companies at extremely attractive prices,” GAM’s Jian Shi claimed.
*We will analyze the Hang Seng Index (HK50), which is available for trading with FBS. If you notice, the quote above tells about the Hang Seng Tech Index, but both the indices are strongly correlated with each other.

Technical outlook​

The HK 50 index has reversed up from the 200-day moving average of 27,600. Why? After a big drop always goes the big rise. Now the index is getting closer to the 23.6% Fibonacci retracement level of 28,335. If it crosses it, the way up to the 38.2% Fibo level of 28,900 will be clear. Support levels are the 200-day moving average of 27,600 and the psychological mark of 27,000.

HK50Daily.png




Reference: FBS (07.07.2021) China's tech selloff. Time to buy the Dips? Fbs analytic news.
 

SebsCubs

New member

What will happen?​

The much-awaited earnings season is about to start! The first companies that will deliver their financial results for the second quarter will be Goldman Sachs, JPMorgan Chase, and PepsiCo.

Goldman Sachs and JPMorgan Chase are American multinational investment banks. They are going to deliver their Q2 financial results on July 13 at 14:30 and 15:30 GMT+3, respectively. The GS’s forecast is $9.96 earnings per share. The JPM’s forecast is $3.16 earnings per share. Last time, the banks beat the estimates due to the rise in wealth and consumer banking revenues after the Covid-19 crisis. However, this time, the result may be weaker than expected as Wall Street analysts have predicted trading revenue at top US banks slumped by 28%.

If Goldman Sachs reveals better-than-expected EPS, it may break above the psychological mark of $380.00, which will open the doors towards the high of June 4 at $390.00. Support levels are the low of June 8 at $360.00 and the 100-day moving average of $350.00.

JPMorgan is getting closer to the key resistance level at the 50-day moving average of $158.00. If the Q2 earnings are strong, it may jump above $158.00, clearing the way up to the all-time high of $167.00. On the flip side, the drop below the low of July 8 at $150.00 will push the stock down to the next support at $147.00.

PepsiCo, the giant beverage company, will reveal its Q2 earnings on July 13 at 13.00 GMT+3. The market expects the company to deliver earnings of $1.53 per share. Most analysts are optimistic about Pepsi’s earnings. Indeed, the coronavirus-related costs should be reduced due to a successful vaccine rollout in the US, which accounts for roughly 2/3 of total Pepsi’s profits.

If PepsiCo reveals strong financial data, its stock price may jump above the $150.00 psychological mark, which will open the doors to the next round number of $155.00. Support levels are the 50-day moving average of $147.00 and the low of June 24 at $146.00.

GSDaily.png




Reference: FBS (12.07.2021) Earnings season starts! FBS analytic news
 
Top