β#marketanalysis #tradingforex #trading
Traders Adjust Their Expectations for Fed Action
From the beginning of November to the end of December 2023, the dollar index futures price fell by approximately 5.5%, according to the CME exchange. The weakening of the USD was caused by the sentiment of traders who expected the Fed to cut interest rates in March. As a result of the sentiment that prevailed at the end of 2023, stock indices, gold (setting a historical maximum on December 4) and cryptocurrencies rose.
However, the start of 2024 indicated a sharp change in sentiment, with the dollar index futures price rising more than 1% during the January 3-4 sessions.
This can be interpreted as:
β during the pre-holiday period, there was a certain emotional component that helped to look into the future with optimism;
β after the end of the holidays, market participants adjusted their expectations regarding the easing of the Fed's actions.
Data released yesterday showed that there is no clear indication that the Fed may start cutting rates, as its members still see the need for policy to remain restrictive for some time.
That is, in the first days of 2024, there was a correction of bullish sentiment at the end of 2023. In the cryptocurrency market, which is characterised by a high degree of margin (opening positions with borrowed funds), the correction turned into an avalanche of sales β the BTC/USD rate dropped rapidly to the level of $41,000, forming a false bullish breakout of the consolidation zone at the end of 2023, which we wrote about yesterday .
We also note the decline in the NASDAQ technology stock index, which, according to Bloomberg, showed the worst start to the year since 2001 (the time of the dot-com crash).
The NASDAQ-100 chart shows that:
β the stock index price is still within the uptrend (shown in blue);
β the price was within the intermediate correction (shown in red), forming a flag pattern;
β the psychological level of 17,000 served as resistance.
The price may be supported by:
β the psychological level of 16,000, which was broken by the bulls after some consolidation in the second half of December;
β the median line of the ascending channel;
β a level of 50% of the A-B growth impulse, located around the level of 15,500.
Price action near these levels (if reached) will provide more valuable information about how much sentiment has changed since the bullish end to 2023.
To benefit from fluctuations in stock market indices, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients.
Traders Adjust Their Expectations for Fed Action
From the beginning of November to the end of December 2023, the dollar index futures price fell by approximately 5.5%, according to the CME exchange. The weakening of the USD was caused by the sentiment of traders who expected the Fed to cut interest rates in March. As a result of the sentiment that prevailed at the end of 2023, stock indices, gold (setting a historical maximum on December 4) and cryptocurrencies rose.
However, the start of 2024 indicated a sharp change in sentiment, with the dollar index futures price rising more than 1% during the January 3-4 sessions.
This can be interpreted as:
β during the pre-holiday period, there was a certain emotional component that helped to look into the future with optimism;
β after the end of the holidays, market participants adjusted their expectations regarding the easing of the Fed's actions.
Data released yesterday showed that there is no clear indication that the Fed may start cutting rates, as its members still see the need for policy to remain restrictive for some time.
That is, in the first days of 2024, there was a correction of bullish sentiment at the end of 2023. In the cryptocurrency market, which is characterised by a high degree of margin (opening positions with borrowed funds), the correction turned into an avalanche of sales β the BTC/USD rate dropped rapidly to the level of $41,000, forming a false bullish breakout of the consolidation zone at the end of 2023, which we wrote about yesterday .
We also note the decline in the NASDAQ technology stock index, which, according to Bloomberg, showed the worst start to the year since 2001 (the time of the dot-com crash).
The NASDAQ-100 chart shows that:
β the stock index price is still within the uptrend (shown in blue);
β the price was within the intermediate correction (shown in red), forming a flag pattern;
β the psychological level of 17,000 served as resistance.
The price may be supported by:
β the psychological level of 16,000, which was broken by the bulls after some consolidation in the second half of December;
β the median line of the ascending channel;
β a level of 50% of the A-B growth impulse, located around the level of 15,500.
Price action near these levels (if reached) will provide more valuable information about how much sentiment has changed since the bullish end to 2023.
To benefit from fluctuations in stock market indices, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients.
ββ#AAPL #stocktrading #stockmarket #MarketNews
Analysts Downgrade AAPL Shares
According to Yahoo Finance, Barclays analysts downgraded AAPL shares to βunderweightβ and lowered their price forecast: they expect the share price to drop to USD 160 (although AAPL traded above USD 184 yesterday).
Analysts justified their decision by their expectations of a decrease in demand for new iPhone models. βOur checks remain negative on volumes and mix for iPhone 15, and we see no features or upgrades that are likely to make the iPhone 16 more compelling.β
The news caused AAPL's share price to fall 3.6% on Tuesday, its biggest one-day percentage drop since September, and the decline wiped out more than USD 107 billion in market value. Concerns are growing due to:
β growing competition from companies such as Huawei Technologies Co;
β strict measures by the Chinese government against foreign-made devices.
The graph shows that:
β The price forms a downward channel, shown in red. We outlined the lower contour of this channel in the analysis of the AAPL share price on November 3. At the same time, we wrote about the emerging decline in sales of Apple products.
β The price has formed an AB double top pattern. Moreover, the second peak is higher than the first, which forms a false bullish breakout - a threatening sign.
β Comparing the performance of AAPL stock with the performance of the stock market index, we can see that the stock is actually underperforming the market in the second half of 2023.
Thus, there is reason to assume that if the price continues to develop within the contours indicated by the downward red channel, it will drop to the values ββpredicted by Barclays analysts.
To benefit from the rise and fall of the world's hottest stocks, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Analysts Downgrade AAPL Shares
According to Yahoo Finance, Barclays analysts downgraded AAPL shares to βunderweightβ and lowered their price forecast: they expect the share price to drop to USD 160 (although AAPL traded above USD 184 yesterday).
Analysts justified their decision by their expectations of a decrease in demand for new iPhone models. βOur checks remain negative on volumes and mix for iPhone 15, and we see no features or upgrades that are likely to make the iPhone 16 more compelling.β
The news caused AAPL's share price to fall 3.6% on Tuesday, its biggest one-day percentage drop since September, and the decline wiped out more than USD 107 billion in market value. Concerns are growing due to:
β growing competition from companies such as Huawei Technologies Co;
β strict measures by the Chinese government against foreign-made devices.
The graph shows that:
β The price forms a downward channel, shown in red. We outlined the lower contour of this channel in the analysis of the AAPL share price on November 3. At the same time, we wrote about the emerging decline in sales of Apple products.
β The price has formed an AB double top pattern. Moreover, the second peak is higher than the first, which forms a false bullish breakout - a threatening sign.
β Comparing the performance of AAPL stock with the performance of the stock market index, we can see that the stock is actually underperforming the market in the second half of 2023.
Thus, there is reason to assume that if the price continues to develop within the contours indicated by the downward red channel, it will drop to the values ββpredicted by Barclays analysts.
To benefit from the rise and fall of the world's hottest stocks, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
β#marketanalysis #forextrading #USDJPY
USD/JPY: The Price Reaches Resistance at 145 Yen per US Dollar
As of Friday morning, the situation on the USD/JPY market deserves attention:
β the US dollar is on course to demonstrate its strongest week since July 2023. The media writes that markets are adjusting expectations regarding the easing of monetary policy by the Fed.
β The yen fell about 3% against the US dollar in the first week of the year, which could be its weakest weekly performance since August 2022.
The USD/JPY chart shows that:
β the price moves within the descending channel (shown in red). Growth at the beginning of the year expanded its boundaries along the principle of a parallel channel.
β the median line has been broken by the bulls. The price action around 142 shows increased demand. The price could not consolidate below this level in December, serving as a powerful support for ending panic on December 7 and 14-15. Also, demand forces did not allow the price to reach the lower border of the channel on December 28.
Note that the bulls managed to break above the psychological level of 145 yen/dollar, something they failed to do on December 19 when a notable high was formed. Thus, the market is in a vulnerable position for a pullback from the upper boundary of the channel after rapid growth in the first days of the year. If this happens, a false bullish breakout of the psychological level of 145 yen per US dollar will form on the chart. The bears will have a chance to resume the trend, but given the listed signs of demand strength around the 142 yen per dollar level, they will have to make significant efforts to do this.
Be careful, today at 16:30 GMT+3 there will be news on the labour market in the US, which will be able to affect the USD exchange rate.
To benefit from the rise and fall of currency rates, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
USD/JPY: The Price Reaches Resistance at 145 Yen per US Dollar
As of Friday morning, the situation on the USD/JPY market deserves attention:
β the US dollar is on course to demonstrate its strongest week since July 2023. The media writes that markets are adjusting expectations regarding the easing of monetary policy by the Fed.
β The yen fell about 3% against the US dollar in the first week of the year, which could be its weakest weekly performance since August 2022.
The USD/JPY chart shows that:
β the price moves within the descending channel (shown in red). Growth at the beginning of the year expanded its boundaries along the principle of a parallel channel.
β the median line has been broken by the bulls. The price action around 142 shows increased demand. The price could not consolidate below this level in December, serving as a powerful support for ending panic on December 7 and 14-15. Also, demand forces did not allow the price to reach the lower border of the channel on December 28.
Note that the bulls managed to break above the psychological level of 145 yen/dollar, something they failed to do on December 19 when a notable high was formed. Thus, the market is in a vulnerable position for a pullback from the upper boundary of the channel after rapid growth in the first days of the year. If this happens, a false bullish breakout of the psychological level of 145 yen per US dollar will form on the chart. The bears will have a chance to resume the trend, but given the listed signs of demand strength around the 142 yen per dollar level, they will have to make significant efforts to do this.
Be careful, today at 16:30 GMT+3 there will be news on the labour market in the US, which will be able to affect the USD exchange rate.
To benefit from the rise and fall of currency rates, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
β#marketanalysis #MarketNews #stockmarket
JPM Stock Hits All-time High
This week the reporting season begins β company results for the 4th quarter will certainly become one of the most important drivers of stock index prices, along with the publication of news about inflation, the labor market, and statements from the Federal Reserve.
Large banks will traditionally be among the first to report: JP Morgan, Bank of America, Wells Fargo, Citi. The banking sector looks frankly strong at the beginning of 2024. While the S&P-500 is down 1% in the first week, the XLF financial sector fund is holding near the year's opening price.
According to MarketWatch, bank stocks are becoming increasingly popular amid expectations of a positive yield curve in the second half of 2024, and analysts have set βbuyβ ratings on shares of Goldman Sachs, Morgan Stanley and Wells Fargo (WFC).
It should be noted that shares of JP Morgan bank set a historical record. The previous high set on October 25, 2021 was USD 172.75 per share. At its peak last Friday, the price reached USD 173.19 per share.
The growth of JPM shares is facilitated by the dividend policy:
β January 2024: USD 1.05 per share;
β January 2023: USD 1.00 per share;
β January 2022: USD 1.00 per share;
β January 2021: USD 0.90 per share;
β January 2020: USD 0.90 per share.
JPM data will be published on Friday. Will the price be able to maintain its highs?
There are some concerns.
From a fundamental point of view, in the current economic environment, with inflation remaining above target and interest rates at high levels, the results for the 4th quarter may disappoint.
From a technical standpoint, the JPM price chart shows signs of a bearish reversal:
β divergence on the RSI indicator;
β potential intersection of MACD curves;
β long upper shadows on the last candles show signs of selling pressure.
Thus, the market can form a false bullish breakout of the previous high. It is possible that the price of JPM shares, against the backdrop of news about the bankβs activities, may fall closer to the former resistance around USD 159.
To benefit from the rise and fall of popular stocks, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
JPM Stock Hits All-time High
This week the reporting season begins β company results for the 4th quarter will certainly become one of the most important drivers of stock index prices, along with the publication of news about inflation, the labor market, and statements from the Federal Reserve.
Large banks will traditionally be among the first to report: JP Morgan, Bank of America, Wells Fargo, Citi. The banking sector looks frankly strong at the beginning of 2024. While the S&P-500 is down 1% in the first week, the XLF financial sector fund is holding near the year's opening price.
According to MarketWatch, bank stocks are becoming increasingly popular amid expectations of a positive yield curve in the second half of 2024, and analysts have set βbuyβ ratings on shares of Goldman Sachs, Morgan Stanley and Wells Fargo (WFC).
It should be noted that shares of JP Morgan bank set a historical record. The previous high set on October 25, 2021 was USD 172.75 per share. At its peak last Friday, the price reached USD 173.19 per share.
The growth of JPM shares is facilitated by the dividend policy:
β January 2024: USD 1.05 per share;
β January 2023: USD 1.00 per share;
β January 2022: USD 1.00 per share;
β January 2021: USD 0.90 per share;
β January 2020: USD 0.90 per share.
JPM data will be published on Friday. Will the price be able to maintain its highs?
There are some concerns.
From a fundamental point of view, in the current economic environment, with inflation remaining above target and interest rates at high levels, the results for the 4th quarter may disappoint.
From a technical standpoint, the JPM price chart shows signs of a bearish reversal:
β divergence on the RSI indicator;
β potential intersection of MACD curves;
β long upper shadows on the last candles show signs of selling pressure.
Thus, the market can form a false bullish breakout of the previous high. It is possible that the price of JPM shares, against the backdrop of news about the bankβs activities, may fall closer to the former resistance around USD 159.
To benefit from the rise and fall of popular stocks, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
β#marketanalysis #MarketNews #tradingforex
The Swiss National Bank Suffered Losses of 3 Billion Francs in 2023
The Swiss National Bank (SNB) reported an annual loss of 3 billion Swiss francs (USD 3.54 billion) in 2023 and said it would not make payments to Switzerland's central or local government or pay dividends to investors.
The loss is believed to have occurred as a result of interest rate hikes aimed at fighting inflation.
Although in Switzerland, perhaps, inflation is at the lowest level: according to yesterday's Core Price Index data, the actual value is = 0.0% (expected = 0.1%, a year ago = -0.2%, the highest actual value in 2023 was = +0.7 %). However, the SNB raised the rate to 1.75% twice in 2023, and this led to it making more payments to deposit account holders.
Note that the loss for 2023 is much less than the record minus 133 billion for 2022. Reuters writes that the losses will not affect the bank's current monetary policy, and interest rates could be cut during 2024.
On November 2, we wrote that the franc could continue to strengthen. Since then, USD/CHF has fallen about 6%, setting its 2023 low on December 28 at 0.83327.
The graph shows that:
β during 2023, the price moved within the descending channel;
β at the 2023 low, the price was unable to reach its lower limit β a sign of a lack of selling pressure;
β the median line of the channel still serves as resistance (as shown by the arrow);
β level 0.845 changed its role from resistance to support;
β in the area of the 2023 lows, long lower shadows were formed on the candles (a sign of aggressive demand). At the same time, the RSI indicator showed that the market was strongly oversold.
Taking into account the above arguments, it can be assumed that the USD will be able to strengthen against the franc, stopping the pace of the downward trend in 2023. A bullish breakdown of the median line (or failure of the price to consolidate below the 0.845 level) will provide more arguments in favor of the presence of demand in the market in question.
To benefit from the rise and fall of currency rates, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
The Swiss National Bank Suffered Losses of 3 Billion Francs in 2023
The Swiss National Bank (SNB) reported an annual loss of 3 billion Swiss francs (USD 3.54 billion) in 2023 and said it would not make payments to Switzerland's central or local government or pay dividends to investors.
The loss is believed to have occurred as a result of interest rate hikes aimed at fighting inflation.
Although in Switzerland, perhaps, inflation is at the lowest level: according to yesterday's Core Price Index data, the actual value is = 0.0% (expected = 0.1%, a year ago = -0.2%, the highest actual value in 2023 was = +0.7 %). However, the SNB raised the rate to 1.75% twice in 2023, and this led to it making more payments to deposit account holders.
Note that the loss for 2023 is much less than the record minus 133 billion for 2022. Reuters writes that the losses will not affect the bank's current monetary policy, and interest rates could be cut during 2024.
On November 2, we wrote that the franc could continue to strengthen. Since then, USD/CHF has fallen about 6%, setting its 2023 low on December 28 at 0.83327.
The graph shows that:
β during 2023, the price moved within the descending channel;
β at the 2023 low, the price was unable to reach its lower limit β a sign of a lack of selling pressure;
β the median line of the channel still serves as resistance (as shown by the arrow);
β level 0.845 changed its role from resistance to support;
β in the area of the 2023 lows, long lower shadows were formed on the candles (a sign of aggressive demand). At the same time, the RSI indicator showed that the market was strongly oversold.
Taking into account the above arguments, it can be assumed that the USD will be able to strengthen against the franc, stopping the pace of the downward trend in 2023. A bullish breakdown of the median line (or failure of the price to consolidate below the 0.845 level) will provide more arguments in favor of the presence of demand in the market in question.
To benefit from the rise and fall of currency rates, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
π2
β#marketanalysis #inflation #MarketNews
Inflation in Australia Continues To Decline. AUD/USD Tests Important Support
Data today from the Australian Bureau of Statistics on Wednesday showed the monthly consumer price index (CPI) rose 4.3% year-on-year in November, the slowest pace since January 2022. Value a month earlier = 4.9%. Market forecasts = 4.4%.
This strengthened market expectations that interest rates would not have to rise further. Although the head of the Reserve Bank of Australia, Michele Bullock, warned of the risks of rising price pressures caused by domestic demand, for example, due to rising prices for rental housing.
Against the backdrop of the publication of news about inflation in Australia, no strong surges were noticed in the AUD/USD market. Perhaps this was due to the fact that there were no surprises.
Meanwhile, the 4-hour chart shows that the AUD/USD rate is nearing important support, which is formed by the lower line of the trend channel (shown in blue), within which the price has been moving since last fall.
Wherein:
β in 2024, the price managed to push off from this line several times, but continued growth did not follow;
β the highs of the days of January 4, 5 and 9 form a sequence of falling tops;
β on January 5, prices broke through the low of December 15, but then rose sharply β a sign of demand below the level of 0.667.
Thus, the chart provides evidence to suggest that the forces of demand have enough capacity to prevent the price from falling, but are so exhausted that they cannot resume the upward trend in the blue channel.
It is possible that the AUD/USD market will trade in a restrained manner until the release of tomorrow's inflation news in the US (16:30 GMT+3), which could lead to the formation of a new balance of supply and demand.
To benefit from price fluctuations in the forex market, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Inflation in Australia Continues To Decline. AUD/USD Tests Important Support
Data today from the Australian Bureau of Statistics on Wednesday showed the monthly consumer price index (CPI) rose 4.3% year-on-year in November, the slowest pace since January 2022. Value a month earlier = 4.9%. Market forecasts = 4.4%.
This strengthened market expectations that interest rates would not have to rise further. Although the head of the Reserve Bank of Australia, Michele Bullock, warned of the risks of rising price pressures caused by domestic demand, for example, due to rising prices for rental housing.
Against the backdrop of the publication of news about inflation in Australia, no strong surges were noticed in the AUD/USD market. Perhaps this was due to the fact that there were no surprises.
Meanwhile, the 4-hour chart shows that the AUD/USD rate is nearing important support, which is formed by the lower line of the trend channel (shown in blue), within which the price has been moving since last fall.
Wherein:
β in 2024, the price managed to push off from this line several times, but continued growth did not follow;
β the highs of the days of January 4, 5 and 9 form a sequence of falling tops;
β on January 5, prices broke through the low of December 15, but then rose sharply β a sign of demand below the level of 0.667.
Thus, the chart provides evidence to suggest that the forces of demand have enough capacity to prevent the price from falling, but are so exhausted that they cannot resume the upward trend in the blue channel.
It is possible that the AUD/USD market will trade in a restrained manner until the release of tomorrow's inflation news in the US (16:30 GMT+3), which could lead to the formation of a new balance of supply and demand.
To benefit from price fluctuations in the forex market, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
β#MarketNews #bitcoin #crypto #cryptonews
Finally! The SEC Approves all 11 Applications for Bitcoin ETFs
The following ETFs can start operating today:
- Blackrock's iShares Bitcoin Trust (IBIT)
- ARK 21Shares Bitcoin ETF (ARKB)
- WisdomTree Bitcoin Fund (BTCW)
- Invesco Galaxy Bitcoin ETF (BTCO)
- Bitwise Bitcoin ETF (BITB)
- VanEck Bitcoin Trust (HODL)
- Franklin Bitcoin ETF (EZBC)
- Fidelity Wise Origin Bitcoin Trust (FBTC)
- Valkyrie Bitcoin Fund (BRRR)
- Grayscale Bitcoin Trust (GBTC)
- Hashdex Bitcoin ETF (DEFI)
Despite the regulatory approval of the first spot Bitcoin ETFs in US history, the head of the US Securities and Exchange Commission (SEC) Gary Gensler has not changed his critical attitude towards cryptocurrencies. Thus, the regulator sees signs of illegally issued securities in many cryptocurrencies that operate on the Proof-of-Stake (PoS) algorithm.
According to Gensler, the regulator was forced to approve the applications due to βchanged circumstances.β This is likely a reference to the recent litigation where Grayscale filed a request with the Commission to transform its Bitcoin fund into a spot ETF. The judge then concluded that the regulator had wrongfully rejected the company's application.
Gensler also warned investors about the numerous risks associated with Bitcoin.
Meanwhile:
β Funds whose applications have been approved are reducing fees one after another, trying to win the competition for investors.
β Bank of England (BOE) Governor Andrew Bailey, speaking before the Treasury Committee of the United Kingdom Parliament, called Bitcoin ineffective.
β Cryptocurrency exchange apps have become unavailable in India due to the introduction of stricter legislation governing cryptocurrencies.
The chart shows that the price of BTC/USD did not change much after the official SEC decision. This highlights that the price of Bitcoin on exchanges has already taken into account the high probability of ETF approval.
We wrote earlier that Bitcoin is starting the year with bullish sentiment.
Note that:
β The price of Bitcoin has reached the upper limit of the long-term channel (shown in blue, it is shown more fully in the post at the link above). Technically, resistance to growth should be expected from the upper border, which is, in principle, observed on the chart.
β On January 2, the bulls tried to break through the A-B consolidation zone, but failed.
β On January 3, there was an attempt at a bearish breakout (shown by an arrow), and it also turned out to be unsuccessful.
β Recent price action shows that line A (44,400) is now acting as support.
Fundamentally, the price could be pushed higher by news that demand for new ETFs is exceeding expectations. But even if the price continues to rise on the new impulse, it will face the psychological mark of 50k per coin β it is possible that a false bullish breakout of the round figure will occur.
To benefit from the rise and fall of Bitcoin, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients.
Finally! The SEC Approves all 11 Applications for Bitcoin ETFs
The following ETFs can start operating today:
- Blackrock's iShares Bitcoin Trust (IBIT)
- ARK 21Shares Bitcoin ETF (ARKB)
- WisdomTree Bitcoin Fund (BTCW)
- Invesco Galaxy Bitcoin ETF (BTCO)
- Bitwise Bitcoin ETF (BITB)
- VanEck Bitcoin Trust (HODL)
- Franklin Bitcoin ETF (EZBC)
- Fidelity Wise Origin Bitcoin Trust (FBTC)
- Valkyrie Bitcoin Fund (BRRR)
- Grayscale Bitcoin Trust (GBTC)
- Hashdex Bitcoin ETF (DEFI)
Despite the regulatory approval of the first spot Bitcoin ETFs in US history, the head of the US Securities and Exchange Commission (SEC) Gary Gensler has not changed his critical attitude towards cryptocurrencies. Thus, the regulator sees signs of illegally issued securities in many cryptocurrencies that operate on the Proof-of-Stake (PoS) algorithm.
According to Gensler, the regulator was forced to approve the applications due to βchanged circumstances.β This is likely a reference to the recent litigation where Grayscale filed a request with the Commission to transform its Bitcoin fund into a spot ETF. The judge then concluded that the regulator had wrongfully rejected the company's application.
Gensler also warned investors about the numerous risks associated with Bitcoin.
Meanwhile:
β Funds whose applications have been approved are reducing fees one after another, trying to win the competition for investors.
β Bank of England (BOE) Governor Andrew Bailey, speaking before the Treasury Committee of the United Kingdom Parliament, called Bitcoin ineffective.
β Cryptocurrency exchange apps have become unavailable in India due to the introduction of stricter legislation governing cryptocurrencies.
The chart shows that the price of BTC/USD did not change much after the official SEC decision. This highlights that the price of Bitcoin on exchanges has already taken into account the high probability of ETF approval.
We wrote earlier that Bitcoin is starting the year with bullish sentiment.
Note that:
β The price of Bitcoin has reached the upper limit of the long-term channel (shown in blue, it is shown more fully in the post at the link above). Technically, resistance to growth should be expected from the upper border, which is, in principle, observed on the chart.
β On January 2, the bulls tried to break through the A-B consolidation zone, but failed.
β On January 3, there was an attempt at a bearish breakout (shown by an arrow), and it also turned out to be unsuccessful.
β Recent price action shows that line A (44,400) is now acting as support.
Fundamentally, the price could be pushed higher by news that demand for new ETFs is exceeding expectations. But even if the price continues to rise on the new impulse, it will face the psychological mark of 50k per coin β it is possible that a false bullish breakout of the round figure will occur.
To benefit from the rise and fall of Bitcoin, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients.
β#stockmarket #MarketNews #marketanalysis
Nikkei 225 sets 21st century high
As the chart shows, this morning the Nikkei 225 price exceeded 35,700, its highest level in decades.
The Nikkei 225 index reached its all-time high on December 30, 1989, at 38,957.44 points. This was against the backdrop of Japan's economic boom, which began in the 1980s and continued until the early 1990s.
Nikkei 225 growth is supported by lower inflation:
β in Japan: the latest data showed an annual inflation rate of 2.8% - lower than a series of more than 10 previous values, all of which were above 3%. This reduces fears that the Bank of Japan will raise interest rates and limit its current economic stimulus policies.
β in the USA. Today, we remind you that at 16:30 GMT+3 inflation data in the USA will be published. They are also expected to show a slowdown in inflation. Therefore, market participants believe in a reduction in Fed rates, which can give impetus to the development of companies.
The NIKKEI chart shows that:
β the price is in an upward trend (marked by a blue channel);
β the price has overcome the correction period (marked by a red channel), which can be interpreted as a βflagβ figure;
β On December 7, the price tested the upper border of the βflagβ (shown by the first arrow);
β On January 4, the price formed a higher low (shown by the second arrow);
β has overcome the median line of the channel (blue dotted line).
Indicators show overbought, the long upper shadow on the last candle indicates that the bears are activating, so a pullback should not come as a surprise. The median line could help the bulls consolidate their progress, and the 33800 level should now be regarded as important support.
To benefit from fluctuations in financial markets, use the services of a reliable broker FXOpen.
Nikkei 225 sets 21st century high
As the chart shows, this morning the Nikkei 225 price exceeded 35,700, its highest level in decades.
The Nikkei 225 index reached its all-time high on December 30, 1989, at 38,957.44 points. This was against the backdrop of Japan's economic boom, which began in the 1980s and continued until the early 1990s.
Nikkei 225 growth is supported by lower inflation:
β in Japan: the latest data showed an annual inflation rate of 2.8% - lower than a series of more than 10 previous values, all of which were above 3%. This reduces fears that the Bank of Japan will raise interest rates and limit its current economic stimulus policies.
β in the USA. Today, we remind you that at 16:30 GMT+3 inflation data in the USA will be published. They are also expected to show a slowdown in inflation. Therefore, market participants believe in a reduction in Fed rates, which can give impetus to the development of companies.
The NIKKEI chart shows that:
β the price is in an upward trend (marked by a blue channel);
β the price has overcome the correction period (marked by a red channel), which can be interpreted as a βflagβ figure;
β On December 7, the price tested the upper border of the βflagβ (shown by the first arrow);
β On January 4, the price formed a higher low (shown by the second arrow);
β has overcome the median line of the channel (blue dotted line).
Indicators show overbought, the long upper shadow on the last candle indicates that the bears are activating, so a pullback should not come as a surprise. The median line could help the bulls consolidate their progress, and the 33800 level should now be regarded as important support.
To benefit from fluctuations in financial markets, use the services of a reliable broker FXOpen.
#MarketNews #inflation #marketanalysis
βInflation Data Changes Market Sentiment
US CPI data published yesterday did not meet expectations. Analysts predicted 3.2%, but in fact it turned out = 3.4% (value a month ago = 3.1%). This hardly means a reversal of the large-scale trend toward weakening inflation (a year ago CPI = 6.5%), but to some extent investors have become wary. According to FedWatch, expectations for a rate cut by the Federal Reserve in March dropped to about 65% (before the news was about 70%).
The publication of the news caused a noticeable surge in volatility in financial markets. Let's pay attention to the S&P 500 chart. The index price is within an uptrend (as shown by the blue channel), however, this trend may change:
β Tops A-B-C form divergence with the RSI indicator β a sign of weakening demand near the upper border of the channel.
β Yesterday, the price only slightly and briefly exceeded the A-B-C formation, forming top D. That is, a false bullish breakout was formed. This type of price behavior at top D confirms the activity of the bears at the level of 4,800.
Formally, the upward trend is still in force, but 4,800 may become an important test of the bullsβ perseverance. One marker could be today's PPI data (to be published at 16:30 GMT+3), as well as reaction to earnings reports from major banks, including JPMorgan Chase, Citigroup, Bank of America and Wells Fargo.
If they turn out to be disappointing, it is possible that the S&P 500 may fall to the lower border of the ascending channel.
To benefit from fluctuations in stock indices, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
βInflation Data Changes Market Sentiment
US CPI data published yesterday did not meet expectations. Analysts predicted 3.2%, but in fact it turned out = 3.4% (value a month ago = 3.1%). This hardly means a reversal of the large-scale trend toward weakening inflation (a year ago CPI = 6.5%), but to some extent investors have become wary. According to FedWatch, expectations for a rate cut by the Federal Reserve in March dropped to about 65% (before the news was about 70%).
The publication of the news caused a noticeable surge in volatility in financial markets. Let's pay attention to the S&P 500 chart. The index price is within an uptrend (as shown by the blue channel), however, this trend may change:
β Tops A-B-C form divergence with the RSI indicator β a sign of weakening demand near the upper border of the channel.
β Yesterday, the price only slightly and briefly exceeded the A-B-C formation, forming top D. That is, a false bullish breakout was formed. This type of price behavior at top D confirms the activity of the bears at the level of 4,800.
Formally, the upward trend is still in force, but 4,800 may become an important test of the bullsβ perseverance. One marker could be today's PPI data (to be published at 16:30 GMT+3), as well as reaction to earnings reports from major banks, including JPMorgan Chase, Citigroup, Bank of America and Wells Fargo.
If they turn out to be disappointing, it is possible that the S&P 500 may fall to the lower border of the ascending channel.
To benefit from fluctuations in stock indices, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
#bitcoin #cryptonews #stockmarket #bitcoinetf
Weekly Market Wrap With Gary Thomson: FTSE, NIKKEI, AUD/USD, BITCOIN ETFs
Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of -FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.
πΈ High hopes for FTSE 100 deflate after first week of 2024
πΈNikkei 225 sets 21st century high
πΈ Inflation in Australia continues to decline. AUD/USD tests important support #Inflation
πΈ Finally! The SEC approves all 11 applications for Bitcoin ETFs
Stay in the know and empower yourself with our short, yet power-packed video. Watch it now and stay updated with FXOpen. Don't miss out on this invaluable opportunity to sharpen your trading skills and make informed decisions.π
https://cutt.ly/MwJAjYP8
To take advantage of price fluctuations in the foreign exchange markets, consider enlisting the services of a reliable broker like FXOpen.
β οΈ
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice
Weekly Market Wrap With Gary Thomson: FTSE, NIKKEI, AUD/USD, BITCOIN ETFs
Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of -FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.
πΈ High hopes for FTSE 100 deflate after first week of 2024
πΈNikkei 225 sets 21st century high
πΈ Inflation in Australia continues to decline. AUD/USD tests important support #Inflation
πΈ Finally! The SEC approves all 11 applications for Bitcoin ETFs
Stay in the know and empower yourself with our short, yet power-packed video. Watch it now and stay updated with FXOpen. Don't miss out on this invaluable opportunity to sharpen your trading skills and make informed decisions.π
https://cutt.ly/MwJAjYP8
To take advantage of price fluctuations in the foreign exchange markets, consider enlisting the services of a reliable broker like FXOpen.
β οΈ
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice
YouTube
Weekly Market Wrap With Gary Thomson: FTSE, NIKKEI, AUD/USD, BITCOIN ETFs
Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.
00:30 High hopes for FTSE 100 deflate afterβ¦
00:30 High hopes for FTSE 100 deflate afterβ¦
β#marketanalysis #bitcoin #crypto
BTC/USD price and the βThree Black Crowsβ pattern
On January 11, the highly publicized Bitcoin ETF began trading after it was officially approved by the SEC. On this day, the price of Bitcoin exceeded USD 48,800, as shown by the chart. Bloomberg writes that new US spot funds achieved net inflows of USD 819 million in the first two days of trading.
However, from the high on January 11, a dizzying fall began, and already at the low on January 12, Bitcoin was worth less than USD 41,800. This dynamic may illustrate the βbuy the rumors, sell the factsβ strategy, which we wrote about on January 3 when predicting the price of Bitcoin in 2024.
News of the ETF's approval sent the ATR above 1,100 on the 4-hour chart, the last time it did so was in mid-June 2022. The market was overly active, and what is important is that three bearish candles (marked with an arrow) summed up this activity. They can be interpreted as the three black crows pattern.
According to statistics from Tim Bulkowski, this pattern works in 78% of cases and means a trend change from bullish to bearish. According to CandleScanner statistics for 20 years, collected on the S&P 500 index market, the pattern turned out to be false only in 18.6% of cases out of 543 occurrences.
Does this mean that the statistics will work on the Bitcoin price chart?
So far, the price is still within the bullish trend (shown as a channel).
The nearest support levels: 41,500, 40,600, the lower border of the channel.
The nearest resistance levels: 44,800, the median line of the channel.
Letβs assume that the beginning of the week will show a continued influx of capital into the Bitcoin ETF. At the same time, it is possible that the price will form a rebound from one of the support lines. But what if these investors also fall into the trap that those who bought Bitcoin on January 11-12 are now in? Then we may witness a breakdown of the lower border of the blue channel, which will confirm the importance of the three black crows pattern.
To benefit from the rise and fall of prices in the cryptocurrency markets, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients.
BTC/USD price and the βThree Black Crowsβ pattern
On January 11, the highly publicized Bitcoin ETF began trading after it was officially approved by the SEC. On this day, the price of Bitcoin exceeded USD 48,800, as shown by the chart. Bloomberg writes that new US spot funds achieved net inflows of USD 819 million in the first two days of trading.
However, from the high on January 11, a dizzying fall began, and already at the low on January 12, Bitcoin was worth less than USD 41,800. This dynamic may illustrate the βbuy the rumors, sell the factsβ strategy, which we wrote about on January 3 when predicting the price of Bitcoin in 2024.
News of the ETF's approval sent the ATR above 1,100 on the 4-hour chart, the last time it did so was in mid-June 2022. The market was overly active, and what is important is that three bearish candles (marked with an arrow) summed up this activity. They can be interpreted as the three black crows pattern.
According to statistics from Tim Bulkowski, this pattern works in 78% of cases and means a trend change from bullish to bearish. According to CandleScanner statistics for 20 years, collected on the S&P 500 index market, the pattern turned out to be false only in 18.6% of cases out of 543 occurrences.
Does this mean that the statistics will work on the Bitcoin price chart?
So far, the price is still within the bullish trend (shown as a channel).
The nearest support levels: 41,500, 40,600, the lower border of the channel.
The nearest resistance levels: 44,800, the median line of the channel.
Letβs assume that the beginning of the week will show a continued influx of capital into the Bitcoin ETF. At the same time, it is possible that the price will form a rebound from one of the support lines. But what if these investors also fall into the trap that those who bought Bitcoin on January 11-12 are now in? Then we may witness a breakdown of the lower border of the blue channel, which will confirm the importance of the three black crows pattern.
To benefit from the rise and fall of prices in the cryptocurrency markets, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients.
#MarketNews #stockmarket #MSFT #AAPL
Microsoft Becomes the Most Expensive Company in the World, Surpassing Apple
According to the results of trading shares of AAPL and MSFT yesterday, the market capitalization is:
β Apple: USD 2.875 trillion.
β Microsoft: USD 2.887 trillion.
This is facilitated by:
β positive expectations of investors in shares of MSFT, connected with the leading positions of the company in the field of artificial intelligence;
β negative sentiments regarding AAPL and demand for its products (as we wrote on January 4). Moreover, the New York Times writes that the Justice Department is preparing to initiate a large-scale antitrust case against Apple because of the dominant position of Apple's devices on the market and the measures that the company used to protect against threats to its business.
MarketWatch provides FactSet statistics on analysts' forecasts:
β AAPL: +6% for the next 12 months, MSFT: +9%.
β MSFT has such ratings: "buy": 90%, "neutral": 10%, "sell": 0%.
β AAPL has such ratings: "buy": 57%, "neutral": 34%, "sell": 9%.
While the price of AAPL is below the maximum of 2023 by approximately 6%, the price of MSFT shares managed to renew the historical record in 2024: at the peak on January 11, MSFT gave more than 390 USD per share.
On January 31, data will be published on Microsoftβs Q4. It is not excluded that while waiting for positive figures, the price of the stock will increase, approaching the psychological level of 400 USD.
The MSFT chart shows that:
β the price is in an upward trend (shown by the blue channel), moving upwards;
β the figure of consolidation Π-Π was broken by bulls, which demonstrates their intentions to set new historical records;
β at the same time, the acceleration of the growth can make the stock overbought (the RSI indicator is near the level = 70).
To take advantage of fluctuating prices of shares of popular companies, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Microsoft Becomes the Most Expensive Company in the World, Surpassing Apple
According to the results of trading shares of AAPL and MSFT yesterday, the market capitalization is:
β Apple: USD 2.875 trillion.
β Microsoft: USD 2.887 trillion.
This is facilitated by:
β positive expectations of investors in shares of MSFT, connected with the leading positions of the company in the field of artificial intelligence;
β negative sentiments regarding AAPL and demand for its products (as we wrote on January 4). Moreover, the New York Times writes that the Justice Department is preparing to initiate a large-scale antitrust case against Apple because of the dominant position of Apple's devices on the market and the measures that the company used to protect against threats to its business.
MarketWatch provides FactSet statistics on analysts' forecasts:
β AAPL: +6% for the next 12 months, MSFT: +9%.
β MSFT has such ratings: "buy": 90%, "neutral": 10%, "sell": 0%.
β AAPL has such ratings: "buy": 57%, "neutral": 34%, "sell": 9%.
While the price of AAPL is below the maximum of 2023 by approximately 6%, the price of MSFT shares managed to renew the historical record in 2024: at the peak on January 11, MSFT gave more than 390 USD per share.
On January 31, data will be published on Microsoftβs Q4. It is not excluded that while waiting for positive figures, the price of the stock will increase, approaching the psychological level of 400 USD.
The MSFT chart shows that:
β the price is in an upward trend (shown by the blue channel), moving upwards;
β the figure of consolidation Π-Π was broken by bulls, which demonstrates their intentions to set new historical records;
β at the same time, the acceleration of the growth can make the stock overbought (the RSI indicator is near the level = 70).
To take advantage of fluctuating prices of shares of popular companies, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
#marketanalysis #usdollar #MarketNews
The Dollar Continues to Strengthen since the Beginning of the Year
The dollar index is hovering at a one-month high against a basket of currencies as remarks from Federal Reserve Chairman Christopher Waller dampened expectations of a March rate cut.
He said that while the U.S. is "within striking distance" of the Fed's 2% inflation target, the Fed should not rush to cut its benchmark interest rate until it is clear that lower inflation will be sustainable.
Market expectations for a rate cut in March fell to 62.2%, down from a forecast of 76.9% in the previous session, according to CME's FedWatch Tool.
The EUR/USD chart today shows that:
β The rate dropped below the important psychological mark of 1.09 euros per dollar. Now (in case of testing) this level can serve as resistance.
β The decline in EUR/USD from the peak at the end of December 2023 has already exceeded 2.3%. Will the trend continue?
Technical analysis of EUR/USD suggests that the strengthening of the US dollar may slow down, as the price is near important support β namely the lower boundary of the ascending channel that has been in effect since the end of last year (the channel is plotted along the turning points indicated by the arrows). It is possible that we will see a rebound from the lower border and by its nature we will be able to judge what the chances of the bulls are to keep the price within the channel.
Today at 16:30 GMT+3, US retail sales data will be published, be prepared for spikes in volatility.
To take advantage of price fluctuations in the foreign exchange markets, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
The Dollar Continues to Strengthen since the Beginning of the Year
The dollar index is hovering at a one-month high against a basket of currencies as remarks from Federal Reserve Chairman Christopher Waller dampened expectations of a March rate cut.
He said that while the U.S. is "within striking distance" of the Fed's 2% inflation target, the Fed should not rush to cut its benchmark interest rate until it is clear that lower inflation will be sustainable.
Market expectations for a rate cut in March fell to 62.2%, down from a forecast of 76.9% in the previous session, according to CME's FedWatch Tool.
The EUR/USD chart today shows that:
β The rate dropped below the important psychological mark of 1.09 euros per dollar. Now (in case of testing) this level can serve as resistance.
β The decline in EUR/USD from the peak at the end of December 2023 has already exceeded 2.3%. Will the trend continue?
Technical analysis of EUR/USD suggests that the strengthening of the US dollar may slow down, as the price is near important support β namely the lower boundary of the ascending channel that has been in effect since the end of last year (the channel is plotted along the turning points indicated by the arrows). It is possible that we will see a rebound from the lower border and by its nature we will be able to judge what the chances of the bulls are to keep the price within the channel.
Today at 16:30 GMT+3, US retail sales data will be published, be prepared for spikes in volatility.
To take advantage of price fluctuations in the foreign exchange markets, consider enlisting the services of a trusted broker like FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
#marketanalysis #stockmarket #stocks
The UK100 price plummeted after the publication of inflation data
Yesterday, the stock market in the United Kingdom experienced a sharp decline following the release of new inflation data. The UK100 price, reflecting the leading British stock index FTSE, dropped approximately 1.5%. Moreover, the RSI indicator on the 4-hour chart fell below the value of 18 for the first time since July 2023.
Analysts attribute this decline to the published inflation data, which not only failed to meet economists' expectations but also indicated a possible strengthening of inflationary pressure in the country. CPI values: actual = 4.0%, expected = 3.8%, previous value = 3.9%.
This raised concerns among investors regarding the Bank of England's future steps in managing interest rates and the potential slowdown in the country's economic growth.
Sectors most sensitive to changes in interest rates, such as real estate and finance, showed the greatest decline. Significant decreases were also observed in the stocks of companies in the retail and consumer goods sectors, reflecting growing concerns about consumer confidence and spending.
The UK100 chart shows that:
β the price dropped to the lower boundary of the channel, indicated in blue;
β market weakness could be inferred from the inability of the UK100 price to stay above the September maximum in December, as well as price action around the 7665 level, which switched roles from support to resistance.
If new negative news emerges for the stock market, support from the lower boundary of the channel may be breached. In that case, it is not excluded that the UK100 stock index will decline to the level of 7300, which served as strong support throughout 2023.
Trade global indices with zero commission and tight spreads with FXOpen. Open your account now or learn more about trading index CFDs with FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
The UK100 price plummeted after the publication of inflation data
Yesterday, the stock market in the United Kingdom experienced a sharp decline following the release of new inflation data. The UK100 price, reflecting the leading British stock index FTSE, dropped approximately 1.5%. Moreover, the RSI indicator on the 4-hour chart fell below the value of 18 for the first time since July 2023.
Analysts attribute this decline to the published inflation data, which not only failed to meet economists' expectations but also indicated a possible strengthening of inflationary pressure in the country. CPI values: actual = 4.0%, expected = 3.8%, previous value = 3.9%.
This raised concerns among investors regarding the Bank of England's future steps in managing interest rates and the potential slowdown in the country's economic growth.
Sectors most sensitive to changes in interest rates, such as real estate and finance, showed the greatest decline. Significant decreases were also observed in the stocks of companies in the retail and consumer goods sectors, reflecting growing concerns about consumer confidence and spending.
The UK100 chart shows that:
β the price dropped to the lower boundary of the channel, indicated in blue;
β market weakness could be inferred from the inability of the UK100 price to stay above the September maximum in December, as well as price action around the 7665 level, which switched roles from support to resistance.
If new negative news emerges for the stock market, support from the lower boundary of the channel may be breached. In that case, it is not excluded that the UK100 stock index will decline to the level of 7300, which served as strong support throughout 2023.
Trade global indices with zero commission and tight spreads with FXOpen. Open your account now or learn more about trading index CFDs with FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
β#marketanalysis #oilprices #oilindustry
OPEC Forecasts an Increase in Oil Demand in 2024
Yesterday, the monthly oil market review was published:
β OPEC expects global oil demand to increase by 2.25 million barrels per day (b/d) in 2024, representing a 2.2% increase compared to 2023.
β In 2025, OPEC predicts a demand increase of 1.85 million barrels per day, reaching 106.21 million barrels per day. It is anticipated that the growth in oil consumption in 2025 will be driven by China, the Middle East, and India.
This aligns with Occidental Petroleum's perspective, where they anticipate a global oil shortage starting in 2025, as the pace of global oil demand growth is roughly four times higher than the volumes of new reserves.
However, according to Citi analysts, the price of Brent crude oil in 2025 is expected to be $60 per barrel due to oversupply.
As of today, the price of Brent crude oil is fluctuating in the consolidation zone around $77 per barrel. Market participants are closely monitoring the potential for an increase in the Brent oil price due to geopolitical tensions. For instance, Maersk has reported that escalation in the Red Sea and the Gulf of Aden will lead to disruptions in global logistics.
The Brent crude oil price chart indicates that
β the new consolidation zone is lower than the previous one when the Brent price hovered around $81.
β the price is near the crucial level of $73, which provided market support in 2023. At that time, OPEC+ countries announced a production cut to prevent further price decline. It is possible that they will take similar measures in 2024.
β the rapid recovery of the price from December lows indicates the strength of demand for Brent oil below $74.
Given the provided information, if the Brent price falls below $74, it may lead to its subsequent increase.
Start trading commodities with tight spreads. Open your trading account now or learn more about trading commodity CFDs with FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
OPEC Forecasts an Increase in Oil Demand in 2024
Yesterday, the monthly oil market review was published:
β OPEC expects global oil demand to increase by 2.25 million barrels per day (b/d) in 2024, representing a 2.2% increase compared to 2023.
β In 2025, OPEC predicts a demand increase of 1.85 million barrels per day, reaching 106.21 million barrels per day. It is anticipated that the growth in oil consumption in 2025 will be driven by China, the Middle East, and India.
This aligns with Occidental Petroleum's perspective, where they anticipate a global oil shortage starting in 2025, as the pace of global oil demand growth is roughly four times higher than the volumes of new reserves.
However, according to Citi analysts, the price of Brent crude oil in 2025 is expected to be $60 per barrel due to oversupply.
As of today, the price of Brent crude oil is fluctuating in the consolidation zone around $77 per barrel. Market participants are closely monitoring the potential for an increase in the Brent oil price due to geopolitical tensions. For instance, Maersk has reported that escalation in the Red Sea and the Gulf of Aden will lead to disruptions in global logistics.
The Brent crude oil price chart indicates that
β the new consolidation zone is lower than the previous one when the Brent price hovered around $81.
β the price is near the crucial level of $73, which provided market support in 2023. At that time, OPEC+ countries announced a production cut to prevent further price decline. It is possible that they will take similar measures in 2024.
β the rapid recovery of the price from December lows indicates the strength of demand for Brent oil below $74.
Given the provided information, if the Brent price falls below $74, it may lead to its subsequent increase.
Start trading commodities with tight spreads. Open your trading account now or learn more about trading commodity CFDs with FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
#stockmarket #Nasdaq #marketnews
βNASDAQ 100 Reaches Historic High. META Shares May Surpass the Historical High
The American stock index NASDAQ 100 has set a new historical high, surpassing the psychological mark of 17,000 points.
The growth was attributed to:
β Analysts at Bank of America raising the rating of AAPL stocks, recommending them for BUY. The price of AAPL shares rose by almost 4%.
β The growth of AMD and NVDA stock prices, as chip manufacturers are significant beneficiaries due to the widespread adoption of AI.
β The earnings season gaining momentum. Market participants anticipate strong results from major technology companies (MSFT, GOOGL, NVDA, and others).
Note the movement of META stock price β the social media giant is close to reclaiming a $1 trillion market capitalisation.
The META stock price chart shows that:
β The market is in an upward trend (indicated by the blue channel). The price is above the median line, a sign of demand stability.
β The level at $340 has shifted its role from resistance to support. A similar phenomenon is observed at the $360 level.
Mark Zuckerberg announced yesterday that by the end of 2024, the company's computing infrastructure would include 350,000 nVidia H100 graphics cards (designed for AI, costing between $25k and $40k each, according to CNBC).
It is not ruled out that riding on the positive momentum, the price of META shares may surpass the historical high. The publication of META's Q4 2023 performance report is scheduled for February 1, 2024.
Buy or sell shares with CFDs in some of the world's biggest publicly listed companies on FXOpenβs trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
βNASDAQ 100 Reaches Historic High. META Shares May Surpass the Historical High
The American stock index NASDAQ 100 has set a new historical high, surpassing the psychological mark of 17,000 points.
The growth was attributed to:
β Analysts at Bank of America raising the rating of AAPL stocks, recommending them for BUY. The price of AAPL shares rose by almost 4%.
β The growth of AMD and NVDA stock prices, as chip manufacturers are significant beneficiaries due to the widespread adoption of AI.
β The earnings season gaining momentum. Market participants anticipate strong results from major technology companies (MSFT, GOOGL, NVDA, and others).
Note the movement of META stock price β the social media giant is close to reclaiming a $1 trillion market capitalisation.
The META stock price chart shows that:
β The market is in an upward trend (indicated by the blue channel). The price is above the median line, a sign of demand stability.
β The level at $340 has shifted its role from resistance to support. A similar phenomenon is observed at the $360 level.
Mark Zuckerberg announced yesterday that by the end of 2024, the company's computing infrastructure would include 350,000 nVidia H100 graphics cards (designed for AI, costing between $25k and $40k each, according to CNBC).
It is not ruled out that riding on the positive momentum, the price of META shares may surpass the historical high. The publication of META's Q4 2023 performance report is scheduled for February 1, 2024.
Buy or sell shares with CFDs in some of the world's biggest publicly listed companies on FXOpenβs trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
#inflation #stockmarket #AAPL #MSFT #usdollar #OPEC
Weekly Market Wrap with Gary Thomson: UK100 DROPS 1.5%, USD RISES, OPECβS FORECASTS, MICROSOFT SURPASSES APPLE
Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.
πΈ The UK100 Price Plummeted After the Publication of Inflation Data
πΈThe Dollar Continues to Strengthen since the Beginning of the Year
πΈ OPEC Forecasts an Increase in Oil Demand in 2024
πΈ Microsoft Becomes the Most Expensive Company in the World, Surpassing Apple
Stay in the know and empower yourself with our short, yet power-packed video. Watch it now and stay updated with FXOpen. Don't miss out on this invaluable opportunity to sharpen your trading skills and make informed decisions.
https://cutt.ly/YwKB4FvC
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
To take advantage of price fluctuations in the foreign exchange markets, consider enlisting the services of a reliable broker like FXOpen.
β οΈ
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice
Weekly Market Wrap with Gary Thomson: UK100 DROPS 1.5%, USD RISES, OPECβS FORECASTS, MICROSOFT SURPASSES APPLE
Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.
πΈ The UK100 Price Plummeted After the Publication of Inflation Data
πΈThe Dollar Continues to Strengthen since the Beginning of the Year
πΈ OPEC Forecasts an Increase in Oil Demand in 2024
πΈ Microsoft Becomes the Most Expensive Company in the World, Surpassing Apple
Stay in the know and empower yourself with our short, yet power-packed video. Watch it now and stay updated with FXOpen. Don't miss out on this invaluable opportunity to sharpen your trading skills and make informed decisions.
https://cutt.ly/YwKB4FvC
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
To take advantage of price fluctuations in the foreign exchange markets, consider enlisting the services of a reliable broker like FXOpen.
β οΈ
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice
YouTube
Weekly Market Wrap with Gary Thomson: UK100 DROPS 1.5%, USD RISES, OPECβS FORECASTS, MSFT GROWS
Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.
00:36 - The UK100 Price Plummeted After the Publicationβ¦
00:36 - The UK100 Price Plummeted After the Publicationβ¦
π1
#marketanalysis #MarketNews #tradingforex
USD/JPY: The Yen Pauses in Anticipation of the Bank of Japan's Decision
In 2024, the yen has significantly depreciated against other currencies. The USD/JPY chart indicates that since the first trading day of January, the exchange rate has risen by more than 5%. However, since the 18th, there has been a lull, and it may be disrupted today or tomorrow due to the Bank of Japan's meeting, during which comments on monetary policy will be provided.
According to Reuters, traders expect that interest rates will not be raised, remaining in the negative territory. This expectation is based on recent "peaceful" comments from the Bank of Japan, coupled with the country facing a serious test in the form of an earthquake on the west coast.
Today's technical analysis of USD/JPY suggests that buyers may have lost momentum as the price approached the psychological level of 150 yen per dollar. Judging by the long upper shadow (indicated by the arrow) on January 19, selling forces were activated. This could be attributed to either profit-taking by buyers after the rally in the first half of January or the opening of new short positions.
Pay attention to an important resistance zone (shown in blue). The bearish breakthrough occurred around the 149.3 level, confirming bearish dominance at the end of the previous year. It is possible that this dominance may persist, supporting the idea that the current calm may be disrupted in favour of the bears.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
USD/JPY: The Yen Pauses in Anticipation of the Bank of Japan's Decision
In 2024, the yen has significantly depreciated against other currencies. The USD/JPY chart indicates that since the first trading day of January, the exchange rate has risen by more than 5%. However, since the 18th, there has been a lull, and it may be disrupted today or tomorrow due to the Bank of Japan's meeting, during which comments on monetary policy will be provided.
According to Reuters, traders expect that interest rates will not be raised, remaining in the negative territory. This expectation is based on recent "peaceful" comments from the Bank of Japan, coupled with the country facing a serious test in the form of an earthquake on the west coast.
Today's technical analysis of USD/JPY suggests that buyers may have lost momentum as the price approached the psychological level of 150 yen per dollar. Judging by the long upper shadow (indicated by the arrow) on January 19, selling forces were activated. This could be attributed to either profit-taking by buyers after the rally in the first half of January or the opening of new short positions.
Pay attention to an important resistance zone (shown in blue). The bearish breakthrough occurred around the 149.3 level, confirming bearish dominance at the end of the previous year. It is possible that this dominance may persist, supporting the idea that the current calm may be disrupted in favour of the bears.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
β#MarketNews #cryptonews #bitcoin #BTCUSD
The Price of Bitcoin Has Dropped Below 40,000: What's Next?
The value of the main cryptocurrency has fallen below the psychological mark for the first time since December 4th of last year. According to on-chain metrics services, the decline in the price of Bitcoin on cryptocurrency exchanges triggered the liquidation of buyer positions for more than 25 million dollars in just 2 hours.
This decline confirms the significance of the three black crows pattern (indicated by the arrow) and the principle of "buy the rumour, sell the fact" β as we discussed in the Bitcoin price analysis on January 15th.
What's next? Will the price continue to decrease?
JPM head Jamie Dimon, as well as legendary investor Peter Schiff, are pessimistic. In their opinion, Bitcoin is a speculative asset. Jamie Dimon explicitly advises staying away from bitcoins, while Peter Schiff, comparing Bitcoin to gold, prefers the precious metal.
On the other hand, the current decrease may indicate a correction within an upward trend. This perspective is held by financial expert and publicist Anthony Scaramucci.
Today's Bitcoin chart shows that:
β BTC/USD has dropped not only below the psychological mark but also below the lower boundaries A and B of the channels, shown in blue and purple on the chart.
β The RSI indicator points to oversold conditions.
If the market shows signs of recovery, then:
β the nature of this recovery (comparing the speed, volumes, and progress achieved relative to the decline from the peaks on January 11th) will provide important information to determine the strength or weakness of demand in the market;
β the important psychological level at 40,000 will be considered support, an attempt to break which has failed. So far, bears are aiming to establish themselves below $40k. If they succeed, the psychological level may pose resistance in the future.
As long as the price of Bitcoin is below 44,000 (approximately 50% from the January peak), we may consider that the initiative is on the bears' side.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage β at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients.
The Price of Bitcoin Has Dropped Below 40,000: What's Next?
The value of the main cryptocurrency has fallen below the psychological mark for the first time since December 4th of last year. According to on-chain metrics services, the decline in the price of Bitcoin on cryptocurrency exchanges triggered the liquidation of buyer positions for more than 25 million dollars in just 2 hours.
This decline confirms the significance of the three black crows pattern (indicated by the arrow) and the principle of "buy the rumour, sell the fact" β as we discussed in the Bitcoin price analysis on January 15th.
What's next? Will the price continue to decrease?
JPM head Jamie Dimon, as well as legendary investor Peter Schiff, are pessimistic. In their opinion, Bitcoin is a speculative asset. Jamie Dimon explicitly advises staying away from bitcoins, while Peter Schiff, comparing Bitcoin to gold, prefers the precious metal.
On the other hand, the current decrease may indicate a correction within an upward trend. This perspective is held by financial expert and publicist Anthony Scaramucci.
Today's Bitcoin chart shows that:
β BTC/USD has dropped not only below the psychological mark but also below the lower boundaries A and B of the channels, shown in blue and purple on the chart.
β The RSI indicator points to oversold conditions.
If the market shows signs of recovery, then:
β the nature of this recovery (comparing the speed, volumes, and progress achieved relative to the decline from the peaks on January 11th) will provide important information to determine the strength or weakness of demand in the market;
β the important psychological level at 40,000 will be considered support, an attempt to break which has failed. So far, bears are aiming to establish themselves below $40k. If they succeed, the psychological level may pose resistance in the future.
As long as the price of Bitcoin is below 44,000 (approximately 50% from the January peak), we may consider that the initiative is on the bears' side.
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage β at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients.
β#stockmarket #NFLX #tradingforex
NFLX Price Sharply Rose on News of an Increase in the Number of Subscribers
The closing price of NFLX shares yesterday was 490.50, but during after-hours trading, NFLX experienced a sharp increase due to the release of the report. Today, in pre-market trading, NFLX is priced at over 530 dollars per share.
The main surprise contained in the report was the increase in the number of paid subscribers. Analysts expected +8.7 million, but the actual figure was +13 million. The growth in the subscriber base is attributed to:
β the company offering a lower subscription rate that includes minor advertising inserts;
β the improvement in the quality of content, including original series, sports broadcasts, games, and shows.
The chart shows that the NFLX share price is developing within an ascending trend (shown by the blue channel). Assuming that the market may open around 530 dollars, then:
β a bullish gap will form on the chart, which may serve as a broad support zone;
β the price will surpass the psychological level of 500 dollars per NFLX share. This level, previously demonstrating resistance properties, may now change its role to support β as was the case with the level at 445 dollars.
β the RSI indicator will show market overbought conditions. A scenario with some correction (e.g., towards the median line of the channel) is not ruled out after the emotions from the company's success subside.
However, overall, the market looks strong, considering the backdrop of the decline in the NFLX price from its historical high of $700 in November 2021 to below $200 in May 2022. We may assume that Netflix has successfully restructured its business model, and if the subscriber base continues to grow at the same pace, the NFLX share price could reach $600 this year.
Buy or sell shares with CFDs in some of the world's biggest publicly listed companies on FXOpenβs trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
NFLX Price Sharply Rose on News of an Increase in the Number of Subscribers
The closing price of NFLX shares yesterday was 490.50, but during after-hours trading, NFLX experienced a sharp increase due to the release of the report. Today, in pre-market trading, NFLX is priced at over 530 dollars per share.
The main surprise contained in the report was the increase in the number of paid subscribers. Analysts expected +8.7 million, but the actual figure was +13 million. The growth in the subscriber base is attributed to:
β the company offering a lower subscription rate that includes minor advertising inserts;
β the improvement in the quality of content, including original series, sports broadcasts, games, and shows.
The chart shows that the NFLX share price is developing within an ascending trend (shown by the blue channel). Assuming that the market may open around 530 dollars, then:
β a bullish gap will form on the chart, which may serve as a broad support zone;
β the price will surpass the psychological level of 500 dollars per NFLX share. This level, previously demonstrating resistance properties, may now change its role to support β as was the case with the level at 445 dollars.
β the RSI indicator will show market overbought conditions. A scenario with some correction (e.g., towards the median line of the channel) is not ruled out after the emotions from the company's success subside.
However, overall, the market looks strong, considering the backdrop of the decline in the NFLX price from its historical high of $700 in November 2021 to below $200 in May 2022. We may assume that Netflix has successfully restructured its business model, and if the subscriber base continues to grow at the same pace, the NFLX share price could reach $600 this year.
Buy or sell shares with CFDs in some of the world's biggest publicly listed companies on FXOpenβs trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.
CFDs are complex instruments and come with a high risk of losing your money.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
