The European Central Bank (ECB) raised its interest rate by another 50 basis points (bps) at its December meeting, bringing its discount rate to the upper limit of most estimates of a neutral configuration for the eurozone, at 2%. The ECB’s new macroeconomic forecasts predict inflation above the ECB’s price stability definition for the entire three-year forecast horizon. The peak discount rate is forecast at 3.25%. Eurozone’s inflation data will be released today. Analysts forecast that consumer prices will remain unchanged.
Trading recommendations
Support levels: 1.0580, 1.0549, 1.0483, 1.0361, 1.0332, 1.0284, 1.0193
Resistance levels: 1.0695
The trend on the EUR/USD currency pair on the hourly time frame is bullish. The price is trading above the moving averages. The price is trading above the moving averages, but there is selling pressure on the lower time frames. The MACD indicator has become inactive. Under such market conditions, buy trades are best considered from the support level of 1.0580 or 1.0549, but with additional confirmation. Sell deals can be considered from the resistance level of 1.0695, but it is better with a confirmation in the form of a reverse initiative or a false breakout because the level has already been tested.
Alternative scenario: if the price breaks down through the support level of 1.0446 and fixes below it, the downtrend will likely resume.
News feed for 2022.12.16:
– French Manufacturing PMI (m/m) at 10:15 (GMT+2);
– German Manufacturing PMI (m/m) at 10:30 (GMT+2);
– Eurozone Manufacturing PMI (m/m) at 11:00 (GMT+2);
– Italian Consumer Price Index (m/m) at 12:00 (GMT+2);
– Eurozone Consumer Price Index (m/m) at 12:00 (GMT+2);
– US Manufacturing PMI (m/m) at 16:45 (GMT+2).
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.2414
Prev Close: 1.2177
% chg. over the last day: -1.95 %
Yesterday the Bank of England raised its interest rate by 0.5% as expected, but it did not help the British currency to keep the fall, as dollar index growth provoked a sell-off in major currency pairs. The Bank of England said that further rate hikes might be needed to meet the bank’s goal of 2%. Investors expect the Bank of England to raise its key rate to 4.5% by the middle of next year, which implies two more hikes of 0.5% each.
Trading recommendations
Support levels: 1.2177, 1.2024, 1.1964, 1.1684, 1.1476, 1.1418
Resistance levels: 1.2308, 1.2431, 1.2519
From the technical point of view, the trend on the GBP/USD currency pair on the hourly time frame is bullish. But the price is trading below the moving averages, and selling prevails inside the day. The MACD indicator is in the negative zone. Under such market conditions, buy trades are better to look for from the support level of 1.2177, but with confirmation on intraday time frames. Sell trades are best sought from the resistance level of 1.2308, but also better with confirmation.
Alternative scenario: if the price breaks down of the 1.2100 support level and fixes below it, the downtrend will likely resume.
News feed for 2022.12.16:
– UK Retail Sales (m/m) at 09:00 (GMT+2);
– UK Manufacturing PMI (m/m) at 11:30 (GMT+2).
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 135.43
Prev Close: 137.78
% chg. over the last day: +1.73 %
Japan’s manufacturing PMI fell to 48.8 in December from 49.0 in the previous month. For the second month, the index is below the 50 mark, which separates contraction from growth. Meanwhile, service sector activity rose due to a rebound in tourism. The Services Business Activity Index (PMI) rose to a seasonally adjusted 51.7 in December, up from 50.3 in the previous month. The Japanese yen is still under pressure as the Bank of Japan firmly sticks to its soft monetary policy.
Trading recommendations
Support levels: 137.18, 135.61
Resistance levels: 139.09, 140.75, 143.17, 145.16
From the technical point of view, the medium-term trend on the currency pair USD/JPY is bearish, but the probability of trend change is increasing as the price has consolidated above the moving averages, and the MACD indicator shows buying pressure. Sell deals can be sought from the resistance level of 139.09, provided that there is a reverse reaction. Buy trades are best considered on intraday time frames from the support level of 137.18, but only with confirmation, as the level is quite high relative to the growth wave.
Alternative scenario: If the price fixes above 139.00, the uptrend will likely resume.
There is no news feed for today.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.3544
Prev Close: 1.3655
% chg. over the last day: +0.82 %
The Canadian dollar lost some ground yesterday due to the rise in the dollar index and the decline in oil prices. In the medium term, the Canadian dollar has strong fundamental support from the Bank of Canada as the BoC holds one of the highest interest rates, on par with the US Federal Reserve. Therefore, only oil prices will have the greatest impact on the USD/CAD quotes.
Trading recommendations
Support levels: 1.3601, 1.3521, 1.3438, 1.3386, 1.3360, 1.3281, 1.3212
Resistance levels: 1.3690, 1.3776, 1.3855
From the point of view of technical analysis, the trend on the USD/CAD currency pair has changed to bullish. The price is trading above the moving averages, and the MACD indicator is positive again. Buy trades should be considered from the support level of 1.3601, but with additional confirmation. For sell deals, it is best to consider the resistance level of 1.3690, but with confirmation in the form of a reverse initiative or after a false breakout, since the level has already been tested.
Alternative scenario: if the price breaks down and consolidates below the support level of 1.3386, the downtrend will likely resume.
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
NZD: New Zealand November external trade, December business confidence
AUD: Reserve Bank of Australia meeting minutes
CNH: China loan prime rates
JPY: Bank of Japan rate decision
EUR: Eurozone December consumer confidence
CAD: Canada October retail sales
Nike earnings
Wednesday, December 21
NZD: New Zealand December consumer confidence
Crude: EIA weekly oil inventories
CAD: Canada November consumer price index (CPI)
USD: US December consumer confidence
Thursday, December 22
GBP: UK 3Q GDP (final)
USD: US weekly initial jobless claims; 3Q GDP
Friday, December 23
JPY: Japan November CPI, BOJ releases October meeting minutes
USD: US November PCE deflator, personal income and spending; December manufacturing activity, consumer sentiment (final)
To be clear, the Bank of Japan is not expected to change anything next week: no rate hike, no policy adjustments, nada.
However, it’s what the BOJ Governor Haruhiko Kuroda says about plans for policy changes in the future, that might be catalyst for major moves for the Japanese Yen.
In the lead up to next week’s meeting, several BOJ officials are reported to be open to reviewing their policy settings in 2023.
Markets now need confirmation from the BOJ’s top boss.
BOJ wants stronger demand-pull inflation before exiting negative rate regime
Keep in mind that, as the rest of the world embarked on an aggressive series of rate hikes in 2022, Japan’s policy balance rate has remained rooted in negative territory, currently at -0.10%.
This is because the BOJ wants to see inflationary pressures become more entrenched in the world’s third largest economy.
Against such a context, we’re due to learn of Japan’s national consumer price index (CPI) – which measures inflation – a week from today:
The November CPI is forecasted to reach 3.9%, which would be almost double the BOJ’s 2% target.
A 3.9% print would also be its highest since January 1991.
However, the BOJ believes even these higher CPI prints are only reflective of higher costs, as opposed to stronger consumer demand that’s pushing these prices higher.
Hence, given the forward-looking nature of the markets, the mere hint that the BOJ is finally ready to hop onto this global policy tightening bandwagon could jolt the Japanese Yen.
JPY bulls ready to pounce
Note how the Japanese Yen remains the worst-performing G10 currency versus the US dollar in 2022, despite recovering by some 10% since weakening to almost 152 against the greenback back in October.
Hence, Yen bulls are raring to go, eager to make the most out of every opportunity to extend JPY’s recovery after being bashed for most of this year.
200-day SMA key support for USDJPY
Looking at the charts, Yen bulls have struggled to push USDJPY below its 200-day simple moving average (SMA) so far this month. This widely-used technical indicator has acted as a crucial support level.
However, this key support level could be broken by hawkish signals out of the BOJ over the coming week.
Hawkish signal = Governor Kuroda confirms that he and his colleagues are willing to review the central bank’s policy settings in 2023.
A successful break below its 200-day SMA may even see yen bulls sizing up a new cycle low below 133.620.
On the flip side, if the BOJ persists with its dovish messaging, still keeping its policy settings untouched for the foreseeable future, that may prompt USDJPY to retest resistance around the 139 region which has served as a key battle ground between bulls and bears in 2022.
A breach of the psychologically-important 140 mark may invite Yen bears to have USDJPY revisit the previous cycle high around 142.25.
On H4, the quotes are in the oversold area. The RSI has bounced off the support line. An upwards breakaway of 0/8 (0.9277) is expected, followed by growth to the resistance level of 2/8 (0.9521). The scenario can be cancelled by a downward breakaway of the support level of -1/8 (0.9155). In this case, the quotes may go on falling and reach -2/8 (0.9033).
On M15, growth can be supported by a breakaway of the upper border of VoltyChannel.
XAUUSD, “Gold vs US Dollar”
On H4, gold quotes are above the 200-day Moving Average, which indicates the prevalence of an uptrend. The RSI is testing the support line. In the end, a test of 5/8 (1781.25) is expected, followed by a bounce off it and growth to the resistance level of 6/8 (1812.50). The scenario can be cancelled by a downward breakaway of the support level of 5/8 (1781.25). In this case, gold quotes may drop to 4/8 (1750.00).
On M15, the upper line of VoltyChannel is too far away from the current price, hence, growth will be supported by a bounce off 5/8 (1781.25) on H4.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
EURUSD is testing the Tenkan-Sen line. The instrument is going above the Ichimoku Cloud, which suggests an uptrend. A test of the Kijun-Sen line at 1.0610 is expected, followed by growth to 1.0935. An additional signal confirming the growth will be a bounce off the lower border of the bullish channel. The scenario can be cancelled by a breakaway of the lower border of the Cloud and securing under 1.0395, which will mean further falling to 1.0305.
BRENT
Crude oil is pushing off the lower border of the Cloud. The instrument is going inside the Ichimoku Cloud, which suggests a flat. A test of the lower border of the Cloud at 80.05 is expected, followed by growth to 91.75. An additional signal confirming the growth will be a bounce off the upper border of the descending channel. The scenario can be cancelled by a breakaway of the lower border of the Cloud and securing under 75.00, which will mean further falling to 70.00. The growth will be confirmed by a breakaway of the upper border of the bearish channel and securing above 85.05.
AUDUSD, “Australian Dollar vs US Dollar”
AUDUSD has secured above the resistance level. The instrument is going above the Ichimoku Cloud, which suggests an uptrend. A test of the Kijun-Sen line at 0.6795 is expected, followed by growth to 0.7005. An additional signal confirming the growth will be a bounce off the lower border of the bullish channel. The scenario can be cancelled by a breakaway of the lower border of the Cloud and securing under 0.6715, which will mean further falling to 0.6620.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
The US Federal Reserve raised its interest rate by 0.5% on Wednesday and raised its rate forecast to a peak of 5.1%. Thus, the Federal Reserve moved to a slower pace of rate hikes and also signaled that rates would reach higher levels than previously expected. At the Fed press conference, Mr. Powell indicated that it is too early to talk about interest rate cuts by the US central bank and that the Fed’s focus is on developing policies that will eventually return inflation to the 2% target.
Trading recommendations
Support levels: 1.0580, 1.0549, 1.0483, 1.0361, 1.0332, 1.0284, 1.0193
Resistance levels: 1.0695
The trend on the EUR/USD currency pair on the hourly time frame is bullish. The price is trading above the moving averages. The MACD indicator has become overbought, and there are signs of divergence, which, coupled with the resistance of the higher time frame, may trigger a correction. Under such market conditions, buy trades are better to consider from the support level of 1.0580 or 1.0549, but with additional confirmation. Sell deals can be considered from the resistance level of 1.0695, but it is better with a confirmation in the form of a reverse initiative or a false breakout.
Alternative scenario: if the price breaks down through the support level of 1.0446 and fixes below it, the downtrend will likely resume.
News feed for 2022.12.15:
– Eurozone ECB Interest Rate Decision at 15:15 (GMT+2);
– Eurozone ECB Monetary Policy Statement at 15:15 (GMT+2);
– US Retail Sales (m/m) at 15:30 (GMT+2);
– US Initial Jobless Claims (w/w) at 15:30 (GMT+2);
– US Philadelphia Fed Manufacturing Index (m/m) at 15:30 (GMT+2);
– Eurozone ECB Press Conference at 15:45 (GMT+2);
– US Industrial Production (m/m) at 16:15 (GMT+2);
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.2357
Prev Close: 1.2427
% chg. over the last day: +0.56 %
In the UK, the consumer inflation rate fell from 11.1% to 10.7% on an annualized basis. Core inflation (a more important indicator because it excludes food and energy prices) fell from 6.5% to 6.3% y/y. After Monday’s positive GDP data, UK Chancellor Jeremy Hunt warned that the economy might get worse before it gets better. However, yesterday’s employment data were mostly positive. The Bank of England (BoE) will meet today with the market consensus for a 50 basis point rate hike.
Trading recommendations
Support levels: 1.2320, 1.2177, 1.2024, 1.1964, 1.1684, 1.1476, 1.1418
Resistance levels: 1.2431, 1.2519
From the technical point of view, the trend on the GBP/USD currency pair on the hourly time frame is bullish. The price is trading above the moving averages. The MACD indicator is in the positive zone, and the buyers’ pressure remains, but there are signs of divergence. Under such market conditions, it is better to look for buy deals from the support level of 1.2320, but with confirmation on intraday time frames. Sell trades are best looked for from the resistance level of 1.2431, but also better with confirmation in the form of a reverse initiative or a false breakout since the level has already been
Alternative scenario: if the price breaks down from the 1.2100 support level and fixes below it, the downtrend will likely resume.
News feed for 2022.12.15:
– UK BoE Interest Rate Decision at 14:00 (GMT+2);
– UK BoE MPC Meeting Minutes at 14:00 (GMT+2).
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 135.57
Prev Close: 135.45
% chg. over the last day: -0.09 %
The US dollar has lost about 10% of its value against the Japanese yen over the past two months. However, the decrease was mainly due to expectations of a slowdown in the pace of rate hikes by the US Federal Reserve. The difference in the interest rates between the Bank of Japan and the US Federal Reserve became even bigger after yesterday’s rate hike, so the JPY has no fundamental support from the Bank of Japan in the mid-term perspective.
From the technical point of view, the medium-term trend on the currency pair USD/JPY is bearish. The MACD indicator is in the negative zone, showing signs of divergence. Sell deals may be searched for from the resistance level of 135.90, provided that there is a reverse reaction. Buy trades are best considered on intraday time frames from the support level of 134.79, but only with confirmation since the level has already been tested.
Alternative scenario: If the price fixes above 139.00, the uptrend will likely resume.
There is no news feed for today.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.3545
Prev Close: 1.3545
% chg. over the last day: 0.00 %
Oil prices fell slightly yesterday due to a stronger dollar, and the possibility of further interest rate hikes by global central banks has also added to demand concerns. The Canadian dollar is a commodity currency, so rising oil prices are strengthening the Canadian currency, while falling oil leads to Canadian weakness.
Trading recommendations
Support levels: 1.3521, 1.3438, 1.3386, 1.3360, 1.3281, 1.3212
From the point of view of technical analysis, the trend on the USD/CAD currency pair has changed to bullish. The MACD indicator shows the divergence, which suggests that the technical correction is coming to an end. Buy trades should be considered from the support level of 1.3521, but with additional confirmation. For sell deals, it is better to consider the resistance level of 1.3601 or 1.3643 but with a confirmation in the form of a reverse initiative or after a false breakout.
Alternative scenario: if the price breaks down and consolidates below the support level of 1.3386, the downtrend will likely resume.
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
Stock indices closed lower Wednesday as the Federal Reserve shifted to a slower pace of rate hikes but also signaled that rates will reach higher levels than previously expected. The US Federal Reserve raised interest rates by 0.5% and raised its rate forecast to a peak of 5.1%, which will remain through 2023. As the stock market closed, the Dow Jones Index (US30) decreased by 0.42%, and the S&P 500 Index (US500) lost 0.61%. Technology Index NASDAQ (US100) was down by 0.76% on Wednesday. All three indices closed the day lower.
The main points of the speech of the US Federal Reserve Chairman Jerome Powell:
There is a commitment to return inflation to the 2% target to ensure price stability, which is key to economic stability.
Rate hikes will slow in 2023. The Fed’s rate guidance is projected to reach 5.00%-5.25%, but everything will depend on incoming economic data.
No rate cut is currently projected for 2023
The labor market and price stability (mainly in food, housing, and transportation) are the key factors for the decision to raise the rate.
Inflation data for October and November 2022 showed visible progress, but more certainty is needed that it is controlled, so the monetary policy remains constrained.
The reduction in assets in Treasury securities will continue.
The labor market is extremely strong. The expected unemployment rate as a result of restraining monetary policy could reach 4.5% versus 3.7% at the moment.
Equity markets in Europe were mostly down yesterday. German DAX (DE30) decreased by 0.26%, French CAC 40 (FR40) lost 0.21%, Spanish IBEX 35 (ES35) added 0.39%, and British FTSE 100 (UK100) closed on Wednesday down by 0.09%.
The ECB will hold its monetary policy meeting today. Analysts expect the ECB to raise the interest rate by 0.5%. The main focus of investors will be the speech of ECB head Christine Lagarde, as well as the ECB’s decision on quantitative tightening (QT).
Yesterday, the Bank of England released its Financial Stability Report, warning that 2023 will be a difficult year for British households due to a combination of falling real incomes, rising mortgage costs, and rising unemployment. After Monday’s positive GDP data, UK Chancellor Jeremy Hunt warned that the economy could worsen before getting better. While yesterday’s employment data was mostly positive, it did indicate a slowdown in hiring as businesses prepare for a tough start to 2023. Wage growth (year-over-year) peaked, adding to the challenge for the Bank of England as it tries to balance recession fears with rising costs of living. The Bank of England (BoE) will meet today with the market consensus for a 50 basis point increase.
Oil prices fell slightly yesterday due to a stronger dollar, and the possibility of further interest rate hikes by global central banks also added to concerns about demand for “black gold.” On the other hand, the restriction by the G7 countries and allies on Russian oil prices will be a restraining factor for the growth.
Asian markets were mostly on the rise yesterday. Japan Nikkei 225 (JP225) gained 0.72%, China FTSE China A50 (CHA50) jumped by 0.93%, Hong Kong Hang Seng (HK50) increased by 0.39% on the day, India NIFTY 50 (IND50) added 0.28%, and Australia S&P/ASX 200 (AU200) gained 0.68% on the day.
Chinese economic data for November was much lower than expected. The world’s second-largest economy lost even more momentum as factory output slowed, and retail sales continued to decline amid a rise in COVID-19 cases.
Japan’s exports rose by 20% in November from a year earlier, but imports outpaced shipments, leading to a 16th consecutive month of trade deficits, Ministry of Finance (MOF) data showed Thursday. As a result, the trade balance came in at a deficit of 2.03 trillion yen ($15.00 billion), compared with an average estimate of a deficit of 1.68 trillion yen.
S&P 500 (F) (US500) 3,995.32 −24.33 (−0.61%)
Dow Jones (US30) 33,966.35 −142.29 (−0.42%)
DAX (DE40) 14,460.20 −37.69 (−0.26%)
FTSE 100 (UK100) 7,495.93 −6.96 (−0.093%)
USD Index 103.63 −0.35 (−0.34%)
Important events for today:
– Australia Unemployment Rate (m/m) at 02:30 (GMT+2);
– China Industrial Production (m/m) at 04:00 (GMT+2);
– China Retail Sales (m/m) at 04:00 (GMT+2);
– China Unemployment Rate (m/m) at 04:00 (GMT+2);
– China NBS Press Conference at 04:00 (GMT+2);
– Switzerland SNB Interest Rate Decision at 10:30 (GMT+2);
– Switzerland SNB Monetary Policy Assessment at 10:30 (GMT+2);
– Switzerland SNB Press Conference at 11:00 (GMT+2);
– Norwegian Interest Rate Decision at 11:00 (GMT+2);
– UK BoE Interest Rate Decision at 14:00 (GMT+2);
– UK BoE MPC Meeting Minutes at 14:00 (GMT+2);
– Eurozone ECB Interest Rate Decision at 15:15 (GMT+2);
– Eurozone ECB Monetary Policy Statement at 15:15 (GMT+2);
– US Retail Sales (m/m) at 15:30 (GMT+2);
– US Initial Jobless Claims (w/w) at 15:30 (GMT+2);
– US Philadelphia Fed Manufacturing Index (m/m) at 15:30 (GMT+2);
– Eurozone ECB Press Conference at 15:45 (GMT+2);
– US Industrial Production (m/m) at 16:15 (GMT+2);
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
RoboMarkets, a European financial broker and developer of the R StocksTrader platform, proudly announces that its efforts have been acknowledged at the Professional Trader Awards event. The R StocksTrader mobile app was voted “Best Mobile Trading Platform-2022” globally. The winners were selected by the professional traders’ community.
The award winners companies were announced at a reception on 8 December 2022 in London. RoboMarkets has proudly earned the “Best Mobile Trading Platform” accolade for three consecutive years. This award is granted to the company that offers a top-tier mobile product to the market of professional trading accounts.
R StocksTrader is a brand-new trading platform, a powerful software for trading stocks and other financial instruments, featuring many added functions. The terminal makes available more than 12,000 trading instruments, allows for creating automated strategies, and more:
Access to the global markets from one platform
Minimal deposit of 100 USD
Leverage up to 1:20
3,000 stocks and 8,000 CFDs to choose from
Denis Golomedov, Chief Marketing Officer at RoboMarkets, comments: “We are extremely excited to receive this award, and would like to thank everyone who voted for us. Since the very start, we have focused on providing cutting-edge services to our clients, and this award reflects the result of our efforts. Our R StocksTrader mobile app offers direct access to the global financial markets from your mobile gadget from anywhere in the world. The app contains over 12,000 trading instruments, handy watchlists, a built-in corporate events calendar, analytics, and more. We constantly update the app, implementing solutions that enhance the trading functions of the platform, and improve risk control. Our team is truly engaged in providing users with an unhindered, cutting-edge trading experience.”
The winners of the Professional Trader Awards were selected after a three-stage process. Firstly, in the four weeks from 5 through 30 September, applications were filed to the organising committee by the brokers themselves, nominating their companies for the chosen award. Next, the organisers polled professional traders, who voted for their preferred nominees. Lastly, the winners of the Professional Trader Awards 2022 were announced after the final calculation of the votes.
About RoboMarkets
RoboMarkets is an investment company, operating under CySEC licence No. 191/13. RoboMarkets offers investment services in European countries by providing access to its proprietary trading platforms to traders who work on financial markets. Find out more about the Company’s products and activities on www.robomarkets.com.
With the need for counterdrone technologies rising, Australian and U.S.-based DroneShield Ltd. has released a lot of news. Read more to learn about the company’s myriad of orders, the DOD recommendation, and the recent million-dollar placement.
Australian and U.S.-based tech company DroneShield Ltd. (DRO:ASX; DRSHF:OTC) has been making many moves lately. Along with an influx of orders over the past two months, the company has also secured a recommendation from the Depart of Defense (DOD) and a AU$3.7 million placement.
DroneShield offers what is known as counterdrone systems, which can interfere with or disable remote-controlled ground surveillance drones during operation and while in flight.
Due to the practical application of drones in modern warfare, the counterdrone technology marketed by DroneShield has attracted the attention of major military electronic warfare organizations, such as the ISREW branch of the Australian Joint Systems Division, The United States Department of Defense, and the Department of Homeland Security.
Why Is Counterdrone Technology Taking Off?
While drones can be extremely useful, they can also pose serious threats. They can be used for drug smuggling, interfere with planes if they are used in airspace near airports, or uncover secure data that should not be released. Because of this, it is imperative we have the technology to counter them by jamming their signal or taking them down completely, and this has become more important now than ever.
Figure 2. In this example, a critical site detects an unauthorized UAS nearby. An interference signal jams the connection between the UAS and its operator to reroute the UAS away from the site.
National Defense Business and Technology Magazine reported that Meni Deutsch, the regional director for Europe at Skylock Anti-Drone Technologies, said, “We have been witnessing the growing demand for anti-drone systems and technologies.”
This demand has led to massive projected growth. The counterdrone market was already at “US$1.1 billion in 2021 and is anticipated to register a CAGR [compound annual growth rate] of 28.3% from 2022 to 2030,” which could provide ample opportunity to investors.
As for DroneShield, the company “differentiates itself from the rest of the market by offering an end-to-end counterdrone solution with largely in-house technology,” Daniel Laing of Bell Potter Securities wrote in a September report.
A Plethora of Orders
DroneShield has also identified critical markets for its counterdrone technology in correctional facilities, government offices, and airport security.
Laing of Bell Potter identified “the deployment of its technology at U.S. military bases following the U.S. DOD recommendation” as a “key catalyst for DroneShield’s projected growth.”
Airports have been on the watch for technology to counter drones. That need was amplified after several incidents, one being the 2018 Gatwick affair, where one of the U.K.’s most popular airports had to suspend all travel after multiple drones were sighted along its airfield.
Since then, “stakeholders at airports all over the world have called for a solution that can identify unauthorized drones — while complying with laws that generally prohibit interference with aircraft,” reported DroneLife.
This led to DroneShield’s August 2022 announcement of its first permanent deployment of DroneSentry at a U.S. airport. You can see a video demonstration of how the Sentry works here.
Then on October 25, 2022, the company received a AU$900,000 order contract for portable counterdrone systems for an undisclosed Asian country. This led to the company trading 2.56% higher on the announcement day.
Last month, DroneShield also announced it would receive AU$1 million from an unnamed international government agency. In this order, the company would provide several of its DroneSentry-X units. DroneSentry-X is vehicle compatible counterdrone device. You can read more details about it here and see a video demonstration of the product through this link.
Payment and shipment are expected before the end of the quarter. The company reported that “for this customer, it is an initial purchase that follows trials, and is expected to follow up with a number of additional systems, to be acquired in 2023.”
First Catalyst: U.S. DOD Recommendation
As the need for countdown technology intensifies, the department of defense has decided to spend at least US$668 million on counterdrone research and development and at least US$78 million on the acquisition by the 2023 fiscal year.
Technical Analyst Clive Maund rated the company an Immediate Buy and said, “with the outlook for orders and earnings improving dramatically, it is clear that there is everything to go for here.”
Along with this, the DroneShield happily unveiled it had been recommended by the U.S. DoD’s Joint Counter-small Unmanned Aircraft Systems Office (JCO) as part of the Science Applications International Corporation (SAIC) joint solution for Counter-UAS as a Service (CaaS).
CEO and managing director Oleg Vornik told Streetwise Reports that DroneShield is proud to have this recommendation and that they “look forward to installations next year as now [the] recommendation has been made to implement the rollout of counter drone systems across the U.S.”
Laing of Bell Potter identified “the deployment of its technology at U.S. military bases following the U.S. DOD recommendation” as a key catalyst for DroneShield’s projected growth.”
These inroads maintained with major government organizations have established the “validation of the sales pipeline through consistent contract wins,” which Laing claims to be an additional, concurrent catalyst for DroneShield’s sustained growth in other sectors.
Second Catalyst: Placement With Epirus
DroneShield also unveiled the organization of a placement of 18.5 million shares with technology investment firm Epirus Inc.
Epirus Inc., named after the unending arrows of the Greek hero Theseus, is a technology company that creates software-defined directed energy systems, which are used to counter electronics from various ranges.
Gavegan of Peloton Capital projects that the funding received from Epirus will contribute toward “the scaling up of engineering and operations in support of current momentum.”
Vornik spoke with Streetwise Reports about the deal, saying that DroneShield and Epirus have been working together for a while now. This is due to their complementary technologies, as DroneShield focuses on drone detection while Eprius focused on defeating drones through high-powered microwave weapons systems.
According to Peloton Capital, the market volume saturation resulting from this deal “represents a discount of 2.4% to the last closing price of AU$0.21 per share.”
At around AU$0.20 per share, Epirus’s placement has provided DroneShield an additional AU$3.7 million in operating capital. Peloton reports that this deal grants Epirus a 4.1% shareholder stake in the upstart Australian counterdrone company.
Shane Gavegan of Peloton Capital noted that DroneShield plans to direct this incoming investment capital toward “the scaling up of ready inventory and long lead items to rapidly fulfill anticipated orders.”
Analysts and Newsletter Commentary
DroneShield is covered by a surfeit of analysts, including Finola Burke of RaaS Advisory Pty Ltd., and previously mentioned Daniel Laing of Bell Potter Securities Ltd., and Shane Gavegan of Peloton Capital.
Laing suggested an estimated “AU$50 million worth of projects for 2022 and about AU$180 million worth for next year and further out” to be fulfilled by DroneShield — a matter of bolstering its supply to meet steady demand. The company, according to Laing, is well positioned to “capitalize on favorable macroeconomic conditions accelerating structural growth in the market.”
Charts courtesy of bigcharts.com
There is also evidence to suggest that this demand for DroneShield’s military technology will grow considerably in the coming quarters, where Gavegan projects that the funding received from Epirus will contribute toward “the scaling up of engineering and operations in support of current momentum.”
This momentum is echoed in the words of Peloton analyst Darren Odell, who noted that the counterdrone company is “currently selling its systems in the Five Eyes countries, the Middle East, and Ukraine.”
Technical analysts Clive Maund also commented on the stock in an August 9, 2022, post.
There Maund said, “the fundamentals of the company have continued to improve at an ever more rapid rate.”
He rated the company an Immediate Buy and said, “with the outlook for orders and earnings improving dramatically, it is clear that there is everything to go for here.”
Both Peloton and Bell Potter also maintain their Buy recommendations on DroneShield.
Click “See More Live Data” in the data box above to view more of what they are saying.
Ownership and Share Structure
Approximately 11% of DroneShield’s stock is owned by management, with CEO Oleg Vornik claiming 15.3 million shares at a majority stake of 3.39%. Other internal stakes are maintained by CFO Carla Balanco at 3.2 million shares, as well as board member Peter James with 9.3 million.
Without any institutional shareholders, the remaining 89% of DroneShield’s outstanding shares are retail.
By the end of the September quarter, the company had a cash balance of AU$7.5 million, along with the AU$3.7 million from Epirus. They ended the quarter slightly cash flow positive and expect to either break even or be cash flow positive this quarter.
A micro-cap, DroneShield currently boasts an approximate AU$90 million market cap on 432 million outstanding shares spread across more than 8,000 investors. Approximately 378 million shares are free-floating. In addition, as noted by analyst Daniel Laing of Bell Potter Securities, DroneShield operates without bank debt and has an estimated AU$7 million in cash available as capital expenditure.
It currently has 451.04 million shares outstanding and trades in the 52-week range between AU$0.188 and AU$0.20.
Disclosures: 1) Katherine DeGilio and Tom Griffin wrote this article for Streetwise Reports LLC and Tom Griffin provides services to Streetwise Reports as an independent contractor. They members of their household own securities of the following companies mentioned in the article: None. They or members of their household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with DroneShield Ltd. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of DroneShield Ltd., a company mentioned in this article.
On H4, the quotes are under the 200-day Moving Average, which indicates the prevalence of a downtrend. The RSI has broken through the support line downwards. A test of 3/8 (134.37) is expected, followed by a breakaway and falling to the support level of 2/8 (131.25). The scenario can be cancelled by rising over the resistance level of 4/8 (137.50). In this case, the pair may rise to 5/8 (140.62).
On M15, the lower line of VoltyChannel is broken away. This indicates prevalence of a downtrend and a high probability of further price falling.
USDCAD, “US Dollar vs Canadian Dollar”
On H4, the quotes have bounced off the 200-day Moving Average and are now above it, which indicates prevalence of an uptrend and an end to the correctional movement. The RSI have bounced off the support level. All in all, growth to 8/8 (1.3671) is expected. The scenario can be cancelled by a downward breakaway of the support level of 7/8 (1.3549), which might lead to a trend reversal and falling to 6/8 (1.3427).
On M15, a breakaway of the upper border of VoltyChannel will signal further growth of the price.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
The currency pair escaped the consolidation range upwards and exhausted the whole potential of the wave of growth at 1.0670. Today the market is forming an impulse of decline to 1.0594. After this level is reached, growth to 1.0633 will become possible. Then a decline to 1.0540 will follow.
GBPUSD, “Great Britain Pound vs US Dollar”
The currency pair escaped the consolidation range upwards to 1.2444. The whole potential of the wave of growth has been exhausted. Today an impulse of decline is expected to develop to 1.2283, followed by growth to 1.2362 and falling to 1.2260.
USDJPY, “US Dollar vs Japanese Yen”
The currency pair has completed a wave of decline to 134.70. Today a link of decline to 133.60 is not excluded. Then growth to 135.77 and a decline to 131.30 might follow.
USDCHF, “US Dollar vs Swiss Franc”
The currency pair has escaped the consolidation range downwards. The goal of the wave at 0.9230 has been reached. Today the pair may grow to 0.9310 and fall to 0.9272, growing next thing to 0.9373.
AUDUSD, “Australian Dollar vs US Dollar”
The currency pair escaped the consolidation range upwards and completed a wave of growth to 0.6891. Today a structure of a declining impulse to 0.6813 is forming. Next, growth to 0.6853 and a decline to 0.6755 should follow.
BRENT
Crude oil is extending the structure of a wave of growth to 82.33. After this level is reached, a correction to 78.78 may follow. Then the pair should grow to 86.00, from where the trend may continue to 89.25. The goal is first.
XAUUSD, “Gold vs US Dollar”
Gold escaped the consolidation range upwards. The potential of a wave of growth to 1824.20 has been exhausted, and today the market is forming an impulse of decline to 1796.20. After this level is reached, a link of growth to 1820.20 might follow, and next – a decline to 1786.30.
S&P 500
The stock index broke through 3997.5 upwards and completed a wave of growth at 4147.0. Today the market has performed an impulse of decline to 3997.5. A link of correction to 4073.0 is not excluded. Then the stock index might fall to 3889.6, from where the trend might continue to 3777.7.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
Article by 
