10 Nov

Nine Stocks Expert Says Should Pique Your Interest

Source: Clive Maund  (11/9/22) 

Expert Clive Maund reviews the 6-month charts of nine companies he believes are worth keeping an eye on. 

Aldeyra Therapeutics

After hitting a cyclical low back in February Aldeyra Therapeutics Inc. (ALDX:NASDAQ) rallied strongly to break clear above its 200-day moving average, which has now turned up.

After becoming very overbought early in August, it has reacted back in a normal manner towards this average above, which what looks like a base pattern has formed over the past six weeks.

With its volume pattern and volume indicators positive, it is in position to begin an uptrend, and the largish white candle about a week ago may mark the start of it.

Action since this candle looks like a tiny bull Flag suggesting renewed advance soon. Buyers here should place a stop below US$5.00.

Dakota Gold

Dakota Gold Corp. (DC:NYSE American) is in a position to advance out of a base pattern that has formed over the past couple of months.

Its volume pattern is positive, and its Accumulation line is strongly positive, with momentum (MACD) now swinging positive.

The initial target for an advance will be this year’s highs in the US$4.70 area, which is the upper boundary of the large trading range that has formed since last Spring.

Danavation Tech Corp.

A large Head-and-Shoulders bottom appears to be completing in Danavation Technologies Corp. (DVN:CSE; DVNCF:OTCQB), with the price having reacted back since August to what is believed to be the Right Shoulder low.

If so, it is at a great entry point here. The Accumulation line is very strong and making new highs despite the dip and with its MACD indicator below the zero line, it has plenty of upside potential from here.

It should start higher soon.

Buyers should place a stop at CA$0.244.

Data Communications Management Corp.

After a sharp rally early in August, Data Communications Management Corp. (DCM:TSX; DCMDF:OTCQX) has been moving sideways, consolidating in a pattern that resembles a bullish Rising Triangle that has allowed the 50-day moving average to catch up to the price which it is now nudging higher toward an upside breakout.

With volume indicators overall positive, momentum-swinging positive again, and moving averages in quite strongly bullish alignment, it is in a position to break into another upleg imminently.

Phenom Resources Corp.

Phenom Resources Corp. (PHNM:TSX.V; PHNMF:OTCQX; 1PY:FSE) has continued to strengthen since it was recommended on the site in the Market Notebook article of the 16th October, and a week ago, it advanced again on very strong volume that this time drove its Accumulation line sharply higher with its On-balance Volume line trending higher for months despite the price being in a downtrend.

The persistent heavy volume of the past month suggests that it is building up to something possibly big.

So we stay long and it remains a buy here and especially on any minor dips.

Reliq Health Technologies

Reliq Health Technologies Inc. (RHT:TSX.V; RQHTF:OTCQB; A2AJTB:WKN) is believed to have been in a basing process since last May, marking out what can either be described as a Head-and-Shoulders bottom or a Cup & Handle base.

It attempted to break higher on an increased volume about a week ago, but with its 200-day moving average still dropping toward the price overhead, it was not quite ready. With the dip of recent days presenting us with a better entry point, this looks like a good time to buy.

There is a clear line of support at CA$0.50, so a good point to place stops would be at about CA$0.485.

Silver Hammer Mining Corp.

Silver Hammer Mining Corp. (HAMR:CSE; HAMRF:OTCQB) has been trundling sideways since June, marking out what is believed to be a low Pan base, especially given the now positive outlook for silver.

Whilst it could break lower from this pattern, this is only likely if a market crash forces the sector temporarily lower.

Otherwise, it looks set to break higher.

However, we should note that it may take some more time to do so, given that the falling 200-day moving average is still some way above the price. Positives are that the Accumulation line has held up quite well on the decline from the peak last April, and downside momentum (MACD) has dropped out.

Thought best for new buyers to wait to see if the price can hold in this area until the 200-day moving average has dropped down closer to the price, watching out for an influx of upside volume as a sign that it is ready to advance.

Slave Lake Zinc Corp.

Slave Lake Zinc Corp. (SLZ:CSE) popped higher on strong volume yesterday on good news out of the company that it deems it worthwhile to proceed with prospecting at O’Connor Lake.

With the company looking set to move forward, the move yesterday looks like the beginning of a new uptrend following the tedious downtrend from the highs of last April, and it is viewed as a speculative buy here and especially on any near-term dips.

Wealth Minerals

October saw a strong advance by Wealth Minerals Ltd. (WML:TSX.V; WMLLF:OTCQB) from a low at about CA$0.165 early in the month to touch CA$0.335 two weeks later. This impressive move was accompanied by persistent heavy upside volume, which is bullish.

Not surprisingly, this advance “hit the wall” when it became very overbought at a zone of quite strong resistance near a still falling 200-day moving average, so after several days of churning, it has dropped back over the past couple of days.

However, the volume pattern and volume indicators remain strongly positive, with volume dying right back as it has reacted, which suggests that it will soon turn higher again, so it is rated an immediate buy here.

 

CliveMaund.com Disclosures

The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

Disclosures:
1) Clive Maund: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family 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: Dakota Gold Corp., Danavation Technologies Corp., Data Communications Management Corp., Reliq Health Technologies Inc., and Wealth Minerals Ltd. 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 Danavation Technologies Corp. and Slave Lake Zinc Corp. Please click here for more information.

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 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 Aldeyra Therapeutics Inc., Dakota Gold Corp., Phenom Resources Corp., and Silver Hammer Mining Corp., companies 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.

Opinions Stock Market News
10 Nov

The US inflation data and congressional election results are in focus for investors today

By JustMarkets

Global stock markets declined yesterday, and the US dollar rose against a basket of major currencies as the US Congressional election and President Joe Biden’s agenda remain unclear after the midterm vote. As the stock market closed, the Dow Jones index (US30) decreased by 1.95%, and the S&P 500 index (US500) lost 2.08%. Technology Index NASDAQ (US100) fell by 2.48% yesterday.

New inflation data will be released in the US today. Analysts forecast that the annual inflation rate will fall from 8.2% to 8%, while core inflation will drop from 6.6% to 6.5%. If the data falls within that range, the dollar index could see a sharp decline on the back of the fact that inflation has already peaked and the US Federal Reserve will be slowing the pace of interest rate hikes. That would give stock indices a boost. But if the data turn out to be worse than expected and the inflation indicators (especially the core inflation) show further growth, the dollar index, on the contrary, can get support, which will lead to a sharp drop in indices. Either way, a tight labor market underscores the relatively slow decline in inflation over the coming months, which was a major factor in this week’s midterm elections.

Federal Reserve Bank of Minneapolis President Neel Kashkari warned Wednesday that it is premature to expect a “dovish reversal” from the Fed and that interest rates will continue to rise. Fed spokesman Barkin said Wednesday that fighting inflation could lead to a downturn in the economy, but that’s a risk the Fed would have to take. This is not the first such statement by Fed policymakers. The only question is whether Fed policy will change after the US Congress reshuffles.

Stock markets in Europe were down yesterday. German DAX (DE30) decreased by 2.48%, French CAC 40 (FR40) fell by 0.17%, Spanish IBEX 35 (ES35) gained 0.52%, and British FTSE 100 (UK100) closed at minus 0.14%.

UK GDP is projected to be down by 0.5% in the third quarter, up from 0.2% in the second quarter. This could be the first of two necessary negative quarters to talk about a recession technically. Annual GDP growth is expected to fall to 2.1% from 4.4%. Analysts also forecast that UK investment will fall to 1.3% in the third quarter, down from 3.7% previously, and the industrial production index will fall to 4.3%, down from 5.2% previously. These factors could play an important role in how the market handles the GDP numbers tomorrow.

Asian markets traded flat yesterday. Japan’s Nikkei 225 (JP225) decreased by 0.56%, Hong Kong’s Hang Seng (HK50) lost 1.20%, and Australia’s S&P/ASX 200 (AU200) was up 0.58% by the end of the day.

An internal analysis of New Zealand’s central bank decisions over the past five years showed that a sharp easing of monetary policy was largely justified because of the pandemic, but in hindsight, monetary policy should have been tightened earlier in 2021.

Weak economic data from China released earlier this week caused more concern about the world’s second-largest economy, which is struggling to control the worst COVID outbreak since May. This has led to the reintroduction of COVID restrictions in several major economic centers. The economic turmoil in China has worsened attitudes toward most economies in the region.

Bank of Japan (BOJ) Governor Haruhiko Kuroda said Thursday that he has no desire to be re-elected to a new five-year term as head of the central bank after his current term expires next April. This increases the probability that the BOJ will change its monetary policy in the spring of 2023, as Kuroda is a fan of soft stimulative policies.

S&P 500 (F) (US500) 3,748.57 −79.54 (−2.08%)

Dow Jones (US30) 32,513.94 −646.89 (−1.95%)

DAX (DE40) 13,666.32 −22.43 (−0.16%)

FTSE 100 (UK100) 7,296.25 −9.89 (−0.14%)

USD Index 110.47 +0.84 (+0.76%)

Important events for today:
  • – FOMC Member Waller Speaks at 09:00 (GMT+2);
  • – US Consumer Price Index (m/m) at 15:30 (GMT+2);
  • – US Initial Jobless Claims (w/w) at 15:30 (GMT+2);
  • – US Natural Gas Storage (w/w) at 17:30 (GMT+2);
  • – Canada BoC Gov Macklem Speaks at 18:50 (GMT+2);
  • – US FOMC Member Mester Speaks at 19:30 (GMT+2);
  • – US FOMC Member George Speaks at 20:30 (GMT+2).

By JustMarkets

 

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.

Economics & Fundamentals Financial News
09 Nov

Crude Oil: 23 Years of Spot-on Forecasts You Can Fact-Check

For commodities like crude oil, supply and demand factors aren’t everything

By Elliott Wave International

Everyone who drives a car is relieved that gas prices have dropped from what they were a little while back.

However, if one major Wall Street firm is correct, get ready for higher prices at the pump again. This is a Nov. 1 headline from Markets Insider:

Tightening oil supply will drive crude oil prices to $115 a barrel by April, Goldman Sachs strategist says

Of course, higher crude oil prices mean higher gas prices and vice versa.

But does a “tightening oil supply” mean higher crude oil prices? Well, that’s certainly conventional wisdom, but as Elliott Wave International has observed over the decades, you cannot count on conventional wisdom.

Indeed, Chapter 22 of Robert Prechter’s landmark book, The Socionomic Theory of Finance, asks:

Do Supply and Demand Regulate Oil Prices?

He goes on to answer that question by saying:

The correct answer is … no, they don’t. In this chapter, I support my conclusion and demonstrate its value.

In a nutshell, Elliott waves regulate the trend of oil prices and the successful calls Elliott Wave International analysts have made over the years offer strong evidence for this.

Keep in mind that as you look at this chart from the book, it took Robert Prechter 43 pages to go into the details of how Elliott wave analysis called every major price turn in crude from 1993 into 2016:

Indeed, the very title of the chart says it all:

Elliott Wave Analysis Forecasted And / Or Recognized In Real Time All Of These Waves And Their Turning Points

Keep in mind that no method of analysis offers guarantees, yet — looking at what’s going on now — the October Global Market Perspective, a monthly Elliott Wave International publication which covers 50-plus worldwide financial markets, noted:

Crude extended its string of lower lows and lower highs in September as anticipated.

The October Global Market Perspective goes on to provide a forecast for crude oil.

Looping back to that crude oil price target by the major Wall Street firm, that price may at some point be hit. The point is that it’s best to consult the Elliott wave model rather than basing a crude oil prediction on supply and demand.

If you’d like to learn about Elliott wave analysis, or need a refresher, an excellent resource is Frost & Prechter’s book, Elliott Wave Principle: Key to Market Behavior. Here’s a quote from this Wall Street classic:

After you have acquired an Elliott “touch,” it will be forever with you, just as a child who learns to ride a bicycle never forgets. Thereafter, catching a turn becomes a fairly common experience and not really too difficult. Furthermore, by giving you a feeling of confidence as to where you are in the progress of the market, a knowledge of Elliott can prepare you psychologically for the fluctuating nature of price movement and free you from sharing the widely practiced analytical error of forever projecting today’s trends linearly into the future. Most important, the Wave Principle often indicates in advance the relative magnitude of the next period of market progress or regress. Living in harmony with those trends can make the difference between success and failure in financial affairs.

Would you like to read the entire online version of Elliott Wave Principle: Key to Market Behavior? If so, you may do so for free once you become a member of Club EWI, the world’s largest Elliott wave educational community.

A Club EWI membership is also free and opens the door to complimentary access to a wealth of Elliott wave resources on investing and trading, including videos and articles from Elliott Wave International analysts.

You can have the book on your screen in moments as you follow this link: Elliott Wave Principle: Key to Market Behavior.

This article was syndicated by Elliott Wave International and was originally published under the headline Crude Oil: 23 Years of Spot-on Forecasts You Can Fact-Check. 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.

Energy Financial News
09 Nov

Mid-Week Technical Outlook: Market Gems & Jewels

By ForexTime 

Global stocks struggled for direction on Wednesday as investors focused on the US midterm election results.

Republicans and Democrats remain in a tight race for control but Republicans appear on course to win a majority in the House of Representatives with 198 seats as of writing. However, the Senate fight is too close to call. The growing anticipation and tension from the US midterms have left market players cautious – stimulating some appetite for safe-haven assets. The dollar edged higher as risk sentiment took a hit while sterling slipped back below 1.1500. Looking at commodities, gold remains above $1700 while oil has found itself back under $95. Things could turn volatile for financial markets over the next few days thanks to the US inflation report and other key reports from major economies. When volatility strikes, this presents potential trading opportunities and there are a couple of gems hidden under all the noise.

USD Index breakdown on horizon?

The FXTM Equally-weighted USD Index remains under pressure with prices wobbling around 1.2400 as of writing. There have been consistently lower lows and lower highs in the H4 timeframe with prices trading below the 50,100 and 200 SMA. Sustained weakness below 1.2400 could trigger a selloff towards 1.2340 and 1.2300, respectively. A move back above 1.2400 may open a path towards 1.2650.

EURUSD tests strong resistance

After pushing back above parity earlier this week, the EURUSD has found itself trapped within another range with resistance at 1.0100 and support at 1.0000. Given how prices are trading above the 50 and 100 SMA coupled with the fact that the MACD is trading above zero, bulls have some control. A strong move above 1.0100 could spark an incline towards 1.0190. Should 1.0100 prove to be strong resistance, the EURUSD may retest parity.

GBPUSD waits for fresh spark

If one word comes to mind when looking at the GBPUSD, it will be “noisy”. The currency pair is pretty choppy and trapped within multiple layers of support and resistance. Bulls or bears need to breakout of this noisy region for the GBPUSD to push higher or lower. A strong move above 1.1500 may trigger an incline towards 1.1600, 1.1750, and 1.1850, respectively. A breakdown under 1.1400 could open a path towards 1.1200.

USDJPY wobbles above 145.00

After creating consistently higher highs and higher lows, the USDJPY bullish trend could be coming to an end in the daily timeframe. Prices are trading above the 50-day SMA which is where the 145.00 support level resides. A strong breakdown below this level could encourage a selloff towards 142.00 and 139.50, respectively. Another rebound from 145.00 is seen opening a path back to 149.00.

S&P 500 respecting bearish channel

A picture says 1000 words. Much can be said for the S&P 500 on the weekly timeframe which continues to respect a bearish channel. There have been consistently lower lows and lower highs on the weekly charts while the MACD trades lower. Prices may test 3650.0 which is just above the 200-week SMA. A breakdown and weekly close under this point may trigger a further decline towards 3450.

Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Forex and Currency News Opinions
09 Nov

Japanese Candlesticks Analysis 09.11.2022 (XAUUSD, NZDUSD, GBPUSD)

By RoboForex.com

XAUUSD, “Gold vs US Dollar”

Near the resistance level, gold has formed a Hanging Man reversal pattern. Currently, if the pair goes by the signal, it may result in another correctional wave. The goal of the pullback will be 1690.00. Upon testing the support level, the price may bounce off it and continue the uptrend. However, the quotes may grow to 1735.00, skipping the reversal signal altogether.

XAUUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

NZDUSD, “New Zealand Dollar vs US Dollar”

On H4, at the resistance level the pair has formed a Hanging Man reversal pattern. Currently, the pair may go by the reversal signal in the form of a descending wave. The goal of the correction will be 0.5890. After a bounce off the support level, the quotes might get a chance to continue the uptrend. However, the price may still grow to 0.6000 without the pullback.

NZDUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

GBPUSD, “Great Britain Pound vs US Dollar”

On H4, at the resistance level, the pair has formed a Hanging Man reversal pattern. Currently, the pair may go by the signal in a descending wave. The goal of the correction may be the support level of 1.1460. If the price bounces off it, it will have a chance for further growth. However, the price may grow outright to 1.1675 without correction.

GBPUSD

Article By RoboForex.com

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.

Financial News Forex and Currency News
09 Nov

The cryptocurrency market digest (BTC). Overview for 09.11.2022

By RoboForex.com

On the crypto market, optimists are shedding blood, and not for the first day in a row. The BTC has dropped to 18,135 USD. The leading cryptocurrency lost 8% overnight and more than 11% over a week.

Other crytocurrencies also dropped over the week: the XRP (-18%), ETH (-20%), DOGE (-38%), SOL (-42%).

Meanwhile, demand has grown for the OKB (+19.0%), MATIC (+6.8%), PAXG (+3.4%), USDP (+0.1%).

The main reason for the crash is the story around Binance and FXT. Let us agree that the FXT exchange fell prey to the eclipse corridor: the platform lost a lot of liquidity after the FTT token went on sale. Investors recalled the story with LUNA at once and fled from risks.

After all that happened, Binance decided to buy the FXT. This looks kind of ambiguous.

All this quite untimely distracted investors from the growth of the US stock indices. In such circumstances, the BTC could easily break through 22,000 USD, but dropped to the well-traded range between strong support levels of 18,000-19,000 USD.

What is next? until the US regulators react somehow, volatility in crypto will remain extreme. This means, the market will be under sales, though not in such crazy volumes.

On Wednesday, capitalisation of the crypto market is 891.8 billion USD. The BTC takes up 39.1% and the ETH – 17.4%.

Article By RoboForex.com

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.

Cryptocurrencies Financial News
09 Nov

The Analytical Overview of the Main Currency Pairs on 2022.11.09

By JustMarkets

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.0016
  • Prev Close: 1.0072
  • % chg. over the last day: +0.56 %

The preliminary results of the US Congressional elections show a significant Republican lead, which means that the US is close to a government split. This may lead to a rise in the dollar index, as the new Congress will want to deal with inflation more quickly and push the US Federal Reserve to raise interest rates even more aggressively. Republicans are willing to accept a recession, but only if it is quick. Therefore, once inflation begins to decline, the US Fed may return to stimulative methods for the economy.

Trading recommendations
  • Support levels: 1.0012, 0.9946, 0.9838, 0.9794, 0.9755, 0.9702, 0.9601
  • Resistance levels: 1.0111, 1.0162, 1.0230

From the technical point of view, the trend on the EUR/USD currency pair on the hourly time frame is still bullish. The price is trading above the moving averages. The MACD indicator is positive, but there is a divergence, indicating the weakness of the buyers and approaching a corrective movement. Under such market conditions, buy trades should be considered from the support level of 0.9946 or 0.9838, but with additional confirmation. Sell deals can be considered from the resistance level of 1.0111, but also with confirmation.

Alternative scenario: if the price breaks down through the support level of 0.9838 and fixes below it, the downtrend will likely resume.

EUR/USD
News feed for 2022.11.09:
  • – FOMC Member Williams Speaks at 10:00 (GMT+2).

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.1514
  • Prev Close: 1.1544
  • % chg. over the last day: +0.26 %

Bank of England Chief Economist Huw Pill said that the sharp decline in the UK labor force is putting upward pressure on inflation and points to further interest rate hikes. The shrinking labor force is one of the reasons Bank of England policymakers point to why they are likely to raise the benchmark lending interest rate above 3%.

Trading recommendations
  • Support levels: 1.1491, 1.1348, 1.1230, 1.1172, 1.1093, 1.0915, 1.0817
  • Resistance levels: 1.1643, 1.1698, 1.1816, 1.1901

From the technical point of view, the GBP/USD currency pair trend on the hourly time frame is bullish. The price is trading above the moving averages. The MACD indicator is positive, but a divergence has appeared, which indicates that further growth is limited. Under such market conditions, buy trades are better to look for on intraday time frames with short targets. Long trades can be considered from the support level of 1.1491 or 1.1348. Sell trades are best sought from the resistance level of 1.1643 but better with confirmation in the form of a reverse initiative.

Alternative scenario: if the price breaks down of the 1.1231 support level and fixes below it, the downtrend will likely resume.

GBP/USD
There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 146.63
  • Prev Close: 145.66
  • % chg. over the last day: -0.67 %

Japan’s current account surplus hit an eight-year low in fiscal 1 due to a record trade deficit caused by a sharp rise in imports and a sharp fall in the yen. The country’s trade deficit stood at 9.23 trillion yen after imports rose twice as fast as exports. The sharp decline underscores a country’s vulnerability that relies heavily on imports. The government is counting on a rebound in inbound tourism, as the weak yen will make travel to Japan and shopping in the country cheaper for foreign tourists.

Trading recommendations
  • Support levels: 145.50, 144.91, 144.19, 143.00
  • Resistance levels: 146.24, 147.34, 148.82, 150.00, 151.05

From the technical point of view, the medium-term trend on the currency pair USD/JPY is bearish. The price is trading below the moving average levels. The MACD indicator is in the negative zone, and sellers’ pressure temporarily prevails. Under such market conditions, buy trades can be searched for on intraday time frames from the support level of 145.50, but with confirmation in the form of a reverse initiative. Sell deals can be searched from the 146.24 or 147.34 resistance level, but only with additional confirmation.

Alternative scenario: If the price fixes above 150.00, the uptrend will likely resume.

USD/JPY
There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.3493
  • Prev Close: 1.3426
  • % chg. over the last day: -0.50 %

The Canadian dollar is a commodity currency, so it is highly dependent not only on the monetary policy of the Bank of Canada but also on the dollar index and oil prices. Oil prices dropped sharply yesterday, which led to weakness in the Canadian currency. Interest rates in the US and Canada are at about the same level, so the imbalance in USD/CAD pricing will mainly come from the dynamics of oil prices and the dollar index.

Trading recommendations
  • Support levels: 1.3486, 1.3400
  • Resistance levels: 1.3608, 1.3682, 1.3776, 1.3855, 1.3968

From the point of view of technical analysis, the trend on the USD/CAD currency pair is bearish. The MACD indicator is negative now, but there is a divergence, which indicates the weakness of the sellers. The best way to sell is to consider the resistance level of 1.3479, but only after the additional confirmation. Buy trades should be considered on the lower time frames from the support level 1.3297, but with additional confirmation.

Alternative scenario: if the price breaks out and consolidates above the resistance level of 1.3682, the uptrend will likely resume.

USD/CAD
News feed for 2022.11.09:
  • – US Crude Oil Reserves (w/w) at 17:30 (GMT+2).

By JustMarkets

 

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.

Financial News Forex and Currency News
09 Nov

Investors returned to gold amid uncertainty over the distribution of power in the United States

By JustMarkets

The Dow Jones Index (US30) increased by 1.02% at Monday’s close, while the S&P 500 Index (US500) added 0.56%. The NASDAQ Technology Index (US100) jumped by 0.49% yesterday.

Preliminary results of the US congressional elections show a significant Republican lead, which means the US is close to a government split, likely derailing the Democrats’ big spending plans on social issues. This could lead to a rise in the dollar index, as the new Congress will want to deal with inflation more quickly and push the US Federal Reserve to raise interest rates even more aggressively. Republicans are willing to accept a recession, but only if it is quick.

Stock markets in Europe traded higher yesterday. The German DAX (DE30) gained 1.15%, the French CAC 40 (FR40) increased by 0.39%, the Spanish IBEX 35 (ES35) added 0.46%, the British FTSE 100 (UK100) closed up by 0.08%.

Sustained growth in German bond yields weakened the dollar amid expectations of further tightening of the European Central Bank policy, which led to a reduction in the spread with Treasury yields. Bank of Germany Governor Joachim Nagel said Tuesday that the ECB should not “give up too soon” and should keep raising rates even if it hurts growth. ECB Governing Council spokesman Pierre Wunsch pointed out yesterday that the European Central Bank may need to raise interest rates more than investors expect. The ECB’s monetary policy response will ultimately depend on the severity of the coming economic slowdown. Therefore, it is important for investors to gauge the performance of the region’s economy, especially GDP.

Gold prices jumped to a one-month high on Wednesday thanks to renewed demand for safe-haven assets and a weaker dollar due to uncertainty over the outcome of the US midterm elections.

Oil prices fell yesterday as industry data showed that US crude inventories rose more than expected. There are also growing concerns that the recovery of COVID-19 cases in the largest importer, China, will hurt demand for fuel. Last week, the oil market had pinned hopes that China might move to ease restrictions related to COVID, but officials said over the weekend that they would stick to their approach.

Asian markets traded flat yesterday. Japan’s Nikkei 225 (JP225) gained 1.25%, Hong Kong’s Hang Seng (HK50) decreased by 0.23%, and Australia’s S&P/ASX 200 (AU200) added 0.36% by the end of the day.

China’s consumer price index was 2.1% y/y in October (forecast 2.4%). The producer price index was 1.3% y/y (forecast 1.5%). The slowdown in China also does not bode well for broader Asian markets, given the country’s role as a major trading hub. Sentiment toward China worsened this week after authorities said Beijing has no plans to roll back its strict zero COVID policy.

S&P 500 (F) (US500) 3,828.11 +21.31 (+0.56%)

Dow Jones (US30) 33,160.83 +333.83 (+1.02%)

DAX (DE40) 13,688.75 +155.23 (+1.15%)

FTSE 100 (UK100) 7,306.14 +6.15 (+0.084%)

USD Index 109.63 −0.50 (−0.43%)

Important events for today:
  • – China Consumer Price Index (m/m) at 03:30 (GMT+2);
  • – China Producer Price Index (m/m) at 03:30 (GMT+2);
  • – FOMC Member Williams Speaks at 10:00 (GMT+2);
  • – US Crude Oil Reserves (w/w) at 17:30 (GMT+2).

By JustMarkets

 

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.

Economics & Fundamentals Financial News
08 Nov

RoboMarkets is the Gold and Title Sponsor of the AEL Women’s Volleyball Team in the 2022-2023 Season

European broker RoboMarkets which provides investment services has become the Gold and Title sponsor of the AEL women’s volleyball club in Limassol. The contract will remain in force through the 2022-2023 season. Through the agreement, the team playing in the Cyprus Major League will be called RoboMarkets AEL Volleyball.

The collaboration of RoboMarkets with AEL started already five years ago and keeps evolving thanks to the goals the two organisations have in common – victory and leadership. However, what mainly unites them both is their passion for volleyball. Over the years of working side by side, there have been challenges and bright times. This invaluable experience made the team stronger, and in the upcoming season, it will fight for victory with the new Title sponsor and under the new name – RoboMarkets AEL Volleyball. Apart from the new name, the sponsorship implies placing a RoboMarkets logo on the team’s outfit and organising joint marketing activities.

Founded in Limassol in 1976, ΑΕΛ (AEL Limassol), now re-named RoboMarkets AEL Volleyball, is the leader among the volleyball teams of the Republic of Cyprus. It boasts a record number of titles among the women’s volleyball teams in Cyprus – 30 Championships. Moreover, the team has become the holder of the Cup of Cyprus 28 times and the Super Cup of Cyprus – 12 times.

Denis Golomedov, Chief Marketing Officer at RoboMarkets, states: “We have been supporting the team for years, and are now on a new collaboration level in our dual capacity as Gold and Title sponsor. This makes our connection even stronger, especially during the 2022-2023 season. We are proud to give our name to one of the best volleyball teams in Cyprus. We will be doing our utmost to help the team become even better and reach new heights together with us!”

“On the occasion of expanding our collaboration with RoboMarkets as our Gold sponsor as well as Title sponsor, I would like, on behalf of the RoboMarkets AEL Volleyball committee to express our deep appreciation to RoboMarkets and its management. Knowing that we have great a company and people as partners, not only supporting us financially but also psychologically, pushes us to maximise our effort for distinction and fulfillment of our goals”, comments Costas Constantinou, President of RoboMarkets AEL Volleyball committee.

About RoboMarkets

RoboMarkets is an investment company with the CySEC license No. 191/13. RoboMarkets offers investment services in many European countries by providing traders, who work on financial market, with access to its proprietary trading platforms. More detailed information about the Company’s products and activities can be found on the official website at www.robomarkets.com.

Financial News
08 Nov

EUR does not give up parity. Overview for 08.11.2022

Article By RoboForex.com

The market major is stuck to parity, unwilling to give it up. The current quote is 1.0000.

Yesterday, a monetary politician from the European Central Bank has mentioned that sooner or later the regulator will have to start Quantitative Tightening. Also, the ECB will have to increase interest rates to the level that would bring inflation to target levels as fast as possible.

These levels will be directly bound to the CPI dynamics, economic conditions, energy carriers prices and the demand for them.

Certain ECB members are sure that inflation in the Euro zone will remain at 10.7% in the nearest future. It will start declining in the first half of 2023 but on the whole, both average and base inflation will remain high.

Today, the macroeconomic calendar is empty both for the Euro zone and the US. The market will be looking at near-economic events and, most importantly, the US Congress elections.

Article By RoboForex.com

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.

Financial News Forex and Currency News
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