As we can see in the H4 chart, after finishing the ascending wave very close to 76.0% fibo at 1.2678, GBPUSD has started a new pullback. If the pair is able to resume growing and break the high at 1.2813 in the nearest future, the price may continue growing towards 50.0% and 61.8% fibo at 1.2895 and 1.3242 respectively. However, one shouldn’t exclude that the instrument may fall with the targets at the low and 50.0% fibo at 1.2252 and 1.2111 respectively.
The H1 chart shows a more detailed structure of the correction after the divergence. By now, the pair has already broken 38.2% fibo but failed to reach 50.0% fibo at 1.2461. Later, it may continue falling towards the latter level, as well as 61.8% fibo at 1.2412. After completing the correction, the instrument may resume trading upwards to reach the high at 1.2670.
EURJPY, “Euro vs. Japanese Yen”
As we can see in the H4 chart, after reaching 50.0% fibo, EURJPY decided not to fall towards the low at 119.31 but chose to continue growing and reach 61.8% instead, thus transforming the current correctional structure into a proper ascending wave. The next upside target is 76.0% fibo at 123.20, while the key target is the high at 124.43.
In the H1 chart, the instrument is trading upwards and has already reached 61.8% fibo. The uptrend is looking quite stable but there is a possibility of a pullback towards the support at 121.27.
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 EUR/USD currency pair shows a pronounced upward trend. The trading instrument has reached key extremes. Some Fed representatives believe that the regulator will have to resort again to lower interest rates in the near future. At the moment, EUR/USD quotes are consolidating in the range of 1.1390-1.1445. The single currency has the potential for further growth. Positions should be opened from key levels.
The news feed on 2020.07.15:
– Industrial production in the US at 16:15 (GMT+3:00);
– Fed’s “Beige Book” at 21:00 (GMT+3:00).
Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.
The MACD histogram is in the positive zone, which gives a signal to buy EUR/USD.
Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which also indicates the bullish sentiment.
Trading recommendations
Support levels: 1.1390, 1.1370, 1.1325
Resistance levels: 1.1445, 1.1500
If the price fixes above 1.1445, further growth of the EUR/USD quotes is expected. The movement is tending to the round level of 1.1500.
An alternative could be a decrease in the EUR/USD currency pair to 1.1360-1.1340.
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.25539
Open: 1.25468
% chg. over the last day: -0.02
Day’s range: 1.25468 – 1.26271
52 wk range: 1.1466 – 1.3516
Purchases prevail on the GBP/USD currency pair. The British pound has updated local highs. At the moment, GBP/USD quotes are testing the resistance level of 1.2620. The 1.2580 mark is the nearest support. The greenback demand has weakened. The UK released optimistic inflation data for June. A trading instrument is tending to grow. Positions should be opened from key levels.
We recommend paying attention to economic releases from the US.
Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.
The MACD histogram has moved into the positive zone, indicating the bullish sentiment.
Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which also gives a signal to buy GBP/USD.
Trading recommendations
Support levels: 1.2580, 1.2555, 1.2500
Resistance levels: 1.2620, 1.2665
If the price fixes above 1.2620, further growth of GBP/USD quotes is expected. The movement is tending to 1.2660-1.2680.
An alternative could be a decrease in the GBP/USD currency pair to 1.2550-1.2520.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.36079
Open: 1.36085
% chg. over the last day: +0.01
Day’s range: 1.35773 – 1.36179
52 wk range: 1.2949 – 1.4668
There is an ambiguous technical pattern on the USD/CAD currency pair. The loonie is consolidating in the range of 1.3580-1.3610. Financial market participants have taken a wait-and-see attitude before today’s Bank of Canada meeting. It is expected that the regulator will keep the key marks of monetary policy at the same level. We recommend paying attention to the comments by the Central Bank representatives. Positions should be opened from key levels.
At 17:00 (GMT+3:00), the Bank of Canada will announce its interest rate decision.
Indicators do not give accurate signals: the price has fixed between 50 MA and 100 MA.
The MACD histogram has moved into the negative zone, indicating the bearish sentiment.
Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which gives a signal to sell USD/CAD.
Trading recommendations
Support levels: 1.3580, 1.3545, 1.3525
Resistance levels: 1.3610, 1.3645, 1.3700
If the price fixes above 1.3610, USD/CAD quotes are expected to grow. The movement is tending to 1.3640-1.3680.
An alternative could be a decrease in the USD/CAD currency pair to 1.3550-1.3530.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 107.238
Open: 107.182
% chg. over the last day: -0.03
Day’s range: 106.888 – 107.307
52 wk range: 101.19 – 112.41
Sales prevail on the USD/JPY currency pair. The trading instrument has updated local lows. The Bank of Japan, as expected, kept the key marks of monetary policy at the same level. At the moment, USD/JPY quotes are consolidating in the range of 106.85-107.10. The yen has the potential for further growth against the US dollar. Positions should be opened from key levels.
We recommend paying attention to the news feed on the US economy.
Indicators signal the power of sellers: the price has fixed below 50 MA and 100 MA.
The MACD histogram has moved into the negative zone, indicating the bearish sentiment.
Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which gives a signal to sell USD/JPY.
Trading recommendations
Support levels: 106.85, 106.70, 106.50
Resistance levels: 107.10, 107.30, 107.40
If the price fixes below 106.85, a further drop in USD/JPY quotes is expected. The movement is tending to 106.70-106.50.
An alternative could be the growth of the USD/JPY currency pair to 107.30-107.50.
The growth of this PCI means that Exxon Mobil shares are rising in price, while oil is getting cheaper or is traded narrowly. The quarterly reports are expected on July 31, 2020. According to forecasts, Exxon Mobil may suffer a loss estimated in a very wide range from – $ 0.61 to – $ 1.24 per stock (current price is $ 43.7). Exxon Mobil is now about 39% cheaper than at the beginning of 2020, and Brent is 35% up. At the end of April this year, Brent dropped to $ 20 per barrel and even lower. At the same time, the company’s shares value was approximately the same as now. Theoretically, the current stabilization of oil prices above $ 35-40 may help the rise of the company’s stocks and the overall growth of the XOM_Brent PCI.
Here are two illustrations of the fractal form of financial markets
By Elliott Wave International
Nature is full of fractals.
Fractals are self-similar forms that show up repeatedly. Consider branching fractals such as blood vessels or trees: a small tree branch looks like an approximate replica of a big branch, and the big branch looks similar in form to the entire tree.
Fractals also form in the price charts of financial markets, at all degrees of trend, in both up- and downtrends. In fact, without knowing the time or price labels, you can’t tell if you’re looking at a 2-minute chart, a daily chart — or a yearly one.
Fans of Elliott wave analysis have been using this information to their advantage for decades. Our March 2020 Elliott Wave Theorist gave subscribers two important real-time examples of fractals at work. Here’s the first one along with the commentary:
This figure offers a good illustration of the fractal nature of markets. It shows the correction in T-bond futures of 2016-2018 on a weekly chart against the correction in the last four months of 2019 on a daily chart. They look quite similar, and each one led to a run to new highs.
And here’s the next example, along with commentary from the March Theorist:
This figure shows another example of the market’s adherence to forms. The top graph shows the 10-minute range for the S&P futures contract on March 4, and the bottom graph shows the same for March 5. Don’t they look similar?
In fact, however, the trend of the market in the top graph was up, and the trend shown beneath it was down. We simply inverted the bottom graph for our illustration. Prices rose on March 4, and they fell on March 5, in the same pattern.
Here’s what this means for investors and traders: The fact that price charts unfold in repetitive and recognizable patterns makes financial markets predictable.
As Elliott Wave Principle: Key to Market Behavior by Frost & Prechter noted:
Scientific discoveries have established that self-similar pattern formation is a fundamental characteristic of complex systems, which include financial markets. Some such systems undergo “punctuated growth,” that is, periods of growth alternating with phases of non-growth or decline, building into similar patterns of increasing size.
Learn more about these self-similar pattern formations and how they can help you to anticipate turns in widely traded financial markets, including the stock market.
You can do so by reading the online version of Elliott Wave Principle: Key to Market Behavior, 100% free.
All that’s required is a Club EWI signup. Club EWI is the world’s largest Elliott wave community and allows you access to a wealth of Elliott Wave International’s resources on investing and trading. Club EWI membership is also free.
This article was syndicated by Elliott Wave International and was originally published under the headline Here’s Why You Can Forecast Markets Just by Looking at Chart Patterns. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
The sentiment pendulum is positioned to swing deeper into ‘risk-on’ territory as markets take heart from vaccine hopes and expectations of further stimulus for pandemic-hit economies.
Wednesday’s trading session has commenced on a positive note, with Asian shares edging higher following news that Moderna’s attempt to produce a coronavirus vaccine was declared safe and produced antibodies in all patients tested in the safety trial. The positive vibe from Asian markets and renewed appetite for risk may power equity bulls in Europe later this morning. With coronavirus vaccine hopes, speculation around more stimulus measures and rebounding growth optimism is likely to keep this party alive, the question is for how long can it be sustained? Given how Q2 earnings are expected to disappoint and coronavirus cases in the United States are now topping 3.5 million, things could get ugly for equity markets. The risk pendulum may then swing back in favour of bears if negative themes in the form of trade uncertainty, geopolitical tensions and fears around global growth trigger a fresh wave of risk aversion.
Will OPEC+ surprise markets?
All eyes will be on the OPEC+ meeting today, as the oil producers are expected to decide on whether to extend the record production cuts of 9.6 million barrels per day (bpd) or taper to 7.7 million bpd starting in August.
In the face of global instability and the uncertainty wrought by the coronavirus pandemic, the cartel enforced record production cuts back in April as the demand for crude evaporated. Initially, the production cuts were planned to run until the end of June, but they were eventually extended to July. Now the question on the mind of many investors is what impact tapering the cuts will have on Oil prices, which appreciated over 30% during the second quarter of 2020. Although the demand for crude has jumped in recent weeks, rising coronavirus cases in the United States along with some cities in other major economies reimposing shutdowns have the potential to hit demand.
Markets seem to be pricing in a taper of production cuts by OPEC+ starting gradually from August. However, should the cartel move ahead with extending the record cuts of 9.6 million bpd beyond this month, this could inject WTI Oil bulls with enough fuel to truly conquer the $40 resistance level.
Commodity spotlight – Gold
Gold continues to shine above $1800 despite vaccine hopes heightening market optimism and boosting risk sentiment.
It looks like the precious metal is deriving its strength from a weaker Dollar and this could remain a recurrent theme this week.
The technical picture remains heavily bullish on the daily charts as there have been consistently higher highs and higher lows. Prices are trading within a bullish channel, the candlesticks are above the 20-day Simple Moving Average, while the Moving Average Convergence Divergence has crossed to the upside. As long as prices remain above the $1800 level, Gold has the potential to test $1815 and a fresh multiyear high at $1825, respectively. Should $1800 prove to be unreliable support, the precious metal may experience a technical correction back towards the $1765-$1780 region before bulls gather fresh momentum on risk aversion.
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.
While Gold failed to gain renewed bullish momentum after the precious metal broke to new yearly highs. It closed above 1,800 USD for the first time since 2011, and the picture keeps on brightening.
While recent US economic data kept on being better than expected, resulting in the Citi Economic Surprise Index rising to a new all-time high and, to the delight of market participants, so US yields didn’t take on any new bullish momentum while Gold broke to new highs.
Last Friday, 10-year US Treasury yields opened below 0.60%, approaching its lowest all-time close of 0.545%.
That said, it seems as if current developments in Gold (and also Silver) are an anticipation of the potential negative impact on the US economy which will be countered with more fiscal stimulus by the US government, financed by freshly printed USD by the Fed.
So, disappointing US economic projections, like today’s industrial production printing below expectations, could result in US yields pushing towards its all-time low close at 0.545%, acting as a catalyst for the bulls and push the yellow metal above 1,820 USD.
Such a break higher levels the path up to the current all-time high of around 1,920 USD, while technically the mode on a daily time-frame in Gold stays bullish as long as we trade above 1,660 USD:
Source: Admiral Markets MT5 with MT5-SE Add-on Gold Daily chart (between April 15, 2019, to July 14, 2020). Accessed: July 14, 2020, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2015, the value of Gold fell by 10.4%, in 2016, it increased by 8.1%, in 2017, it increased by 13.1%, in 2018, it fell by 1.6%, in 2019, it increased by 18.9%, meaning that after five years, it was up by 28%.
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China’s imports of pork are on the rise. Its January to June imports of pork were at 2.12 million tons in the first six months of the year, up 140% over the same period a year ago, according to China’s General Administration of Customs. China is the second largest pork importing country in the world after Japan, accounting for $4.5 billion (14.1%) of total imported pork in the world in 2019. Rising Chinese pork imports are bullish for LHOG. However China has started testing containers of frozen food for the presence of the coronavirus, and additional testing will negatively affect its meat imports. Likely drop in Chinese pork imports due to testing requirement is a downside risk for LHOG.
Benchmark Oil prices continue to mark time as OPEC+ readies its decision today on its supply cuts programme. Markets are expecting the alliance of major Oil-producing nations to start easing off on the 9.6 million barrels a day (bpd) it has been withholding from the markets since May, and potentially reduce that number to 7.7 million bpd starting in August.
Such expectations have kept Brent within the lower-$40/bbl range, while Crude has not strayed far from the $40/bbl psychologically-important level.
As seen in the charts above, the unprecedented output cuts that were agreed to on April 12 was a necessary component to helping Oil markets adjust to the pandemic, considering the demand destruction wrecked by global efforts to contain the coronavirus. The promise of removing about 10 percent of global output (equivalent to 9.6 million barrels per day) helped Brent and Crude overcome the dramatic losses seen in March and April, although prices still remain far below their respective year-to-date highs.
While the reopening of major economies suggests that the world is ready for more Oil supply, concerns remain over whether OPEC+ may be deciding to pull back on its supply cuts too quickly, considering the still-fragile recovery in the global economy. With the surge in US infections that has prompted delays in the reopening plans of some states, along with pockets of reimposed shutdowns in other major economies, the demand for Oil has a long and treacherous path ahead before it can be restored to pre-pandemic levels.
Such concerns may be tampered should OPEC+ announce that members who did not fully adhere to the proposed supply cuts in May and June, would have to keep their respective production levels lowered for longer, potentially through September. That could help offset the incoming supply from other OPEC+ members who have been holding up their end of the bargain in recent months.
OPEC+ will have to get this tricky balancing act right, or risk spooking the markets.
The base case that markets appear to be pricing in for today’s key decision is that OPEC+ will relax production cuts gradually, starting next month. In the off chance that OPEC+ decides to extend its output cuts of 9.6 million bpd into August, that may push Oil prices even higher, provided member nations actually comply with the agreement. However, should market participants get the sense that too much supply is returning too quickly, that could see Oil prices pare recent gains and falter back into sub-$40 territory.
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.
Sector expert Michael Ballanger takes a look at the latest moves in the financial and precious metals markets, and updates his investment strategy moving into late summer.
I’ve only just returned from the majesty of Georgian Bay, where the first fishing derby of the season had me summarily trounced by my female partner 12 to 5, with most of her catches in the 1- to 2-pound category and mine barely larger than the lure that attracted them.
Adding to this humiliation was that, despite that I have harangued incessantly about the urgency of “setting the hook” once you get a strike, I lost four 1-pound-plus bass within three feet of the dinghy by failing to properly execute that about which I constantly lecture.
It is like a seasoned professional investor standing at the lectern emoting and evoking on the need to “never underestimate the replacement power of equities within an inflationary spiral,” after which he ignores the volcanic eruption of coordinated global stimuli, both monetary and fiscal, and tries to short the market. The phrases “practice what you preach” or “eat what you kill” might come to mind, but the phrase that aptly describes the current market absurdity is, “Follow the money!”
During a brief time at an Internet-signal-friendly anchorage just south of Parry Sound, I read the latest explanation for a 6% jump in the Shanghai market, where Chinese Communist Party (CCP) officials had been urging its 1.4 billion people to “buy stocks” because the pandemic fears were “largely overblown.” Buried in the last few paragraphs was the real reason, and it was that many of the CCP billionaire supporters were feeling the pain of sagging stock prices, and the last thing the CCP bigwigs need is donor unrest.
This is a common thread around the world, where every politician finds the need to secure a larger and larger pool of re-election funding. There is no better way to do that than to hand each citizen enough government welfare cash to allow the average mask-wearing, basement-living, laptop-trading millennial to buy 100 shares of Tesla Inc. (TSLA:NASDAQ) in April under US$500. They then send out a flotilla of central bank “governors,” also call “spokesmen” (but should be called “salesmen”), to actively promote the ownership of Tesla (or Amazon or Netflix) as a truly capitalist endeavor, but solidly American to the core.
Then they unleash a torrent of social media marketing gimmickry, which includes unregulated “target prices” issued by a twenty-something unemployed college grad with a math degree who has been trading since March and who has no understanding of things like “price-earnings ratios” or “yield compression” ormost importantly”margin call.” The legions of basement dwellers now totally bored with video games and sports betting, all collectively manning their day-trading cockpits as bona fide rookies in the world of high finance, decide en masse to buy Tesla with their government stimulus cash and voila! They all get a wondrous lesson in Econ 101, as the tsunami of demand dwarfs the smaller tsunami of supplyand what to their wondering eyes should appear? A US$1,544 share price!
Let there be no confusion of brains with bull markets. If you follow the money, it was precisely what Powell & Co., the White House, and of course the Wall Street bankers wanted and needed to prolong the 2009? Ponzi-schemed bull market in overpriced, overhyped stocks.
Happily, this fiscal and monetary madness, made possible only by the arrival of a mysterious pandemic, which appeared some four months after the Fed executed their “pivot,” has now been revealed for what is wasa crisis-driven excuse for flooding the debt-soaked global landscape with enough phony liquidity to allow all of those junk bonds to be removed painlessly from the portfolios of Blackrock and JP Morgan and Goldman and a plethora of submerged hedge funds in danger of insolvency.
In keeping with the timeless brilliance of Sir Winston, following the money leads us directly to that “phrase of the decade,” which is, “Never let a good crisis go to waste!” And with “Waste not; want not” at the fore, the paper-conjurers have unleashed a global debt surge that is several orders of magnitude larger than 20092011 print-fest. And finallyfinallythe gold and silver markets have started to respond, and happily, in a big way.
Since I took profits in the miners in April after loading the gun on April 16, the day the HUI bottomed at 142.51, the index has more than doubled in response to all the previously discussed nonsense. I exited in April around the 250 level, partly due to overbought conditions but more because of the seasonal weakness that normally arrives during the MayJuly period. I also was reluctant to tempt fate and risk giving back the 157% year-to-date portfolio return I am currently sporting.
Nevertheless, when conditions change, I change, and the breakout above US$1,800/ounce in August gold has forced me to start thinking about the GDX/GDXJ dynamic duo again. I normally wait until August (and I still may), but since we have a new high in the HUI and a new monthly high in gold, all we need is for silver to close above the September 2019 high at US$19.75/ounce for all cylinders to kick into “afterburner mode.”
One indicator that could have provided a clue was a close in the gold-to-silver index (GSR) below the 50-dma (daily moving average) at 94.96, which it did on Friday. Silver prices look like they could test the highs very shortly, and since the bullion bank behemoths are still short over 350 million net ounces, they have few arrows left in their collective quivers with which to beat back the mountain of demand that is inhaling all supply in Pac-Man-like fashion.
The next chart tells the story of how traders panic into lemming-like marches to oblivion. Note how the narrative of a U.S. dollar short squeeze played out in March, despite the most dollar-bearish fiscal and monetary policies in U.S. history. After watching Powell, Mnuchin, Canadian Finance Minister Morneau, and virtually every European Central Bank spokesperson on cable every day and night since the first mention of “QE to Infinity,” I now strongly object to the notion that they are “printing money” to ease the pain of their citizens. They are not printing “money;” they are printing “debt,” and it is debt that will never be repaid, ever. All currency created digitally or in the U.S. Bureau of Engraving and Printing is nothing more than another person’s (or entity’s) obligation to repay; it is not “free.” Since gold and silver are the only two items that meet the true definition of “money,” and since you cannot print gold or silver, then the term “money printing” is flawed, and for now will be replaced with the term “debt printing,” in reference to the counterfeiting actions of the global central banks.
The U.S. dollar initially spiked as a safe haven trade back in March, but then crashed as soon as the Fed/Treasury Keystone Kops Brigade began their hyperinflationary tap dance. Thus far, they have been successful in thwarting the forces of deflation by creating dollar-bearish policy initiatives that, at least for now, have kept the deflationary tsunami at bay.
However, the last three months have brought about a slow erosion of the dollar and a possible retest of the March 9 lows. If it breaks those lows at 94.50 basis the dollar index, then I will be expecting gold at $2,100/ounce and silver at $25/ounce quickly. However, the cretins in Washington and New York will fight it at every turn, and with all the ammunition available to them, so I must remain vigilant and cautious until they demonstrate a dedicated apathy to such an event.
I remain 69.61% long the basket of junior developers and explorers in the 2020 GGMA portfolio, while holding 30.39% cash with a 161.61% return year to date (YTD). While I have not been holding either of my two beloved miner exchange-traded funds (ETFs; GDX/GDXJ) since April, my decision to overweight the developers (such as Getchell Gold Corp. [GTCH:CSE], up 183.3% YTD), and make Getchell my #1 holding, with Aftermath Silver Ltd. (AAG:TSX.V) close behind, is now starting to yield results.
I do not need to announce to anyone that my cautiousness in the past three months was, shall we say, “unwarranted,” and is a $#$%$# understatement of the highest order. However, in the middle and latter stages of precious metals bull markets, penny explorers become juniors and juniors become intermediates and intermediates become seniors. Such is the natural rotation of the miner hierarchy as investment flows fall deeper and deeper in love with them; the danger occurs when that love turns to infatuation and obsession, but we are many months and possibly years from that happening.
The most recent subscriber issue has a few additions to both the portfolio and the trading account in advance of the arrival of August. I have always used August as my “accumulation month,” and while it is usually the latter part of August, events here in July might have forced me to accelerate the accumulation of more than a few possible ten- to twenty-baggers looking out to next May.
Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger’s adherence to the concept of “Hard Assets” allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.
Disclosure: 1) Michael J. Ballanger: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: Getchell Gold, Aftermath Silver. My company has a financial relationship with the following companies referred to in this article: Getchell Gold, Aftermath Silver. I determined which companies would be included in this article based on my research and understanding of the sector. Additional disclosures are below. 2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. 3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. 4) This 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 interview or the decision to write an article until three business days after the publication of the interview or 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 Tesla, Getchell Gold and Aftermath Silver, companies mentioned in this article.
Michael Ballanger Disclaimer: This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.
Echelon Capital Markets initiates coverage and explains why it is bullish on CloudMD Software & Services.
In a July 7 research note, analyst Rob Goff reported that Echelon Capital Markets initiated coverage on CloudMD Software & Services Inc. (DOC:TSX.V; DOCRF:OTCQB; 6PH:FSE) with a Speculative Buy rating and a CA$1.40 per share target price. The healthcare tech firm is currently trading at roughly CA$0.64 per share.
Goff described the Vancouver-based company as having an “integrated model positioned to monetize on telehealth emergence and organic, acquisition-driven growth.”
This model consists of a business-to-consumer and business-to-business healthcare platform with numerous components, including telehealth, billing, electronic medical records and more. CloudMD achieves growth in part through acquisitions and partnerships.
Goff explained why CloudMD’s platform and the continuing buildout of it make the company an attractive investment opportunity. For one, the COVID-19 pandemic has sped up development of the telehealth industry by about three years, he wrote. Echelon expects an “integrated, in-clinic, online digital model” to slowly replace the traditional model and ultimately become the standard for healthcare delivery.
Telehealth, the core, is expected to surpass $1 billion in patient billings in five years, through support by patients, physicians and regulators.
“We see Amazon’s moves toward the healthcare market as endorsement for the sector’s demographic growth prospects, a threat to legacy models and a catalyst to consolidate the ecosystem towards larger, vertically integrated providers,” commented Goff.
The analyst addressed CloudMD’s current undervaluation. He noted that “the company’s current enterprise value of $86.1 million “significantly undervalues the economic potential within CloudMD’s portfolio and strategy” and does not “reflect the telehealth trajectory.”
Also, Goff highlighted that Echelon expects CloudMD’s shares to positively rerate as the firm becomes financially sound, which will be driven by a series of potential near-term catalysts.
Those include CloudMD achieving Q4/20 revenue of $7.1 million and an EBITDA of -$0.1 million, booking more than 0.2 million telehealth appointments this year, completing the testing phase of its pharmacy kiosks and moving toward a large deployment of them, and acquiring additional assets.
Disclosure: 1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her 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 CloudMD Software & Services Inc. 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 interview or the decision to write an article until three business days after the publication of the interview or 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 CloudMD Software & Services Inc., a company mentioned in this article. 6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.
Disclosures from Echelon Wealth Partners, CloudMD Stofware & Services Inc., July 7, 2020
Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.
I, Rob Goff, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report.
Important Disclosures: Is this an issuer related or industry related publication? Issuer.
Does the Analyst or any member of the Analysts household have a financial interest in the securities of the subject issuer? No
The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer. No
Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No
Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer? No
During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer? Yes
During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? Yes
Has the Analyst had an onsite visit with the Issuer within the last 12 months? No
Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No
Has the Analyst received any compensation from the subject company in the past 12 months? No
Is Echelon Wealth Partners Inc. a market maker in the issuers securities at the date of this report? No
