A Weekend Plagued With Uncertainties Ahead Of Some Profit-Taking

Plagued With Uncertainties Ahead Of Some Profit-Taking

It is a known fact, that various participants have varying concerns or interests in global markets, and given the opportunity will do absolutely anything within their power to drive the trends in their favor.

There will always be Bull and Bears, or Doves and Hawks in the market. Not knowing which season the market is in could greatly impact visibility.

The technical and fundamental analysis applied effectively, as you know, could make a difference in maintaining a positive ROI.

So What season is it? Besides that, the fact that we are in Q3 and some companies have already begun announcing their reports with about 25 or so reports today, which could support some listings on the stock market.
Central Banks are also in Season with Interest rate adjustments, to which some market participants coil

Thursday’s talks and allegations to impeach the US president in light of new evidence stirred the market. While some analysts allude to it, others attempt to figure out what this means, an already capricious market. Button line, we still do not know! However, some proponents may ride on the news to push and pull global markets.

Global Stocks: Trade in familiar micro ranges with occasional breakouts, trading sideways is more prevalent across the board than those gauging the support and resistance seem to overcome.

• Wall Street: In the ensuing spotlight shown on US President Trump, Wall Street remains largely bullish in view.

USA 30: The Dow 30 futures are one of the benefactors today. Likely to extend gains until it reaches overbought levels. Seen at the time of print 10:30 GMT, up 0.18% at 26,941.5. Sets to range between 26,809.0 – 26,958.0 Technical analysis suggests a 2nd resistance level at 27,000.0 and perhaps a 3rd at 27,300.0, should in case these thresholds are not breached trends could be heading to 2nd support at around 26,697.24

• THE EU MARKET: Were observed extending gains or at least recovery from recent falls.

Germany 30: For instance, was seen in the early EU open tacking on gains up 0.15% at 12,337.0 initially trading between 12,267.5 -12,345.5. There is an upside movement in view. Our technical analysts support this view with the 2nd resistance level estimated at around 12,400.0 or very close to his mark.

Italy 40: The FTSE MIB, did make it past the 21,915.0 levels grazing the 21,960+ before shedding some gains. Ranging between 21,847.50 and 21,967.50. In my humble view, for the rest of the day we’re going to be witnessing a seesaw, those prepared may consider the scalping strategy. The technical analysis supports this view, however, does warn of a possible breakout to 22,185.00 to the upside or 21,585.0 to the downside.

UK100: Caught hawkish at levels seen nearly 8 weeks ago. Ranging between 7,321.2-7,389.5 up 0.88% with the potential to test 7,400.00 and even a 3rd resistance at 7,452.00 as our technical experts suggest.

• ASIAN MARKET: Well today, reports indicated most of the Asian stocks had slipped to levels seen about 14 days ago. Lingering in a bearish state.

Hong Kong 50: Is likely to remain in proximity trading between 25,804.5 – 26,037.0. Technical pressure could cause slippage to support levels around 25,770.0. Of course, appreciation for the Hang Seng 50 futures is warranted some upside may be registered.

Malaysia 70: Was amongst the last ones standing on Thursday, however after crossing the 14k thresholds market participants may observe trading between 13,930.71 – 14,045.4.

Commodities:
As per our statement Wednesday that, “Since Tuesday the commodities have been a skirmish” little has changed. With volatility abounding as geopolitics and Macroeconomics take their toll. On the commodities in general.

Oil: Ahead of the weekend, oil traders look to scrutinize reports from the Baker Hughes Rig Count. West Texas intermediary, (WTI crude oil) prices were seen at 56.48 up0.12%. However, it is predicted that some downside movement is in view. By the time of print 10:45 GMT, a trading range between 55.98 -56.59 was recorded. Technical analysis suggests gravitational pulls to lows around 54.80 will be registered before correction upwards is noted. In this case, the 2nd resistance level could rest at 57.30.

Gold: The precious metal is touchy, especially as traders jump in and out of risk-on, risk-off mode. Caught at 1,503.95 in an initial trading range between 1,497.35 – 1,514.35. Maybe upside back to 1,528 may come in view if traders feel the need to flee to the safe havens.

FX Market:
There is no doubt that the Greenback trades at all-time highs. Just shay from its 13-month highs at 99.37 ranging in and out of gains.

However, Ahead of the day’s US PCE (personal consumption) report. The USD may be viewed with a Kaleidoscope in regard to a handful of other majors.

• USD/JPY: The USD was seen preparing for a short rally at 107.92 up 0.09% in a tight range between 107.66-107.93 a 2nd resistance level should be registered at 108.15 as per our technical and maybe even unto the 3rd resistance at 108.25 before taking a breather.

• EUR/USD: The EUR slipped from Wednesday’s highs, caught attempting to extend gain today at 1.0922 in a latched-in range between 1.0905 and 1.0929. Upside movement to 1.0949 is eminently followed by attempts to touch 1.09575 if breached 1.102.00 becomes the plausible next threshold to conquer.

• GBP/USD: With the UK stocks bullish in the early EU trading session as FTSE 100 extended gains and talks of the BOE’s prospects to address interest rates the pound sat down to compose itself trading between 1.2271-1.2341 to be precise by 10:50 GMT the pair stood at 0.36% down on 1.2281. The technical analysis calls your attention to a possible short rally to 1.2360.

• AUD/USD: The Aussie Dollar and its counterpart the US dollar will be seen flirting with each other between small gains and losses, likely in a range between 0.6744 – 0.6766

Crypto currencies:
Cryptocurrency is finding it a bit stressful to remove or address all the regulatory concerns in a timely manner. Messing with an investor’s psyche. It is many have been hit hard.

However, continue to hold on for the ensuing rally, hopefully sooner than later. A sensitive topic that not all heavily FIAT asset holders embrace wholeheartedly.

As a crypto bull myself, I have no choice but to fall on my sword. In acknowledgment that, as per technical analysis, traders may have to brace for some more downside for BTC.

This time perhaps to 7,870.00, and below before the uptrend to 8,100 and possibly to 8,440.0 after this more bulls are likely to re-join to drive the price back to 9k. By the time of print, the range was between 7,796.6 – 8,432. The capricious rise & fall is an intrinsic, phenomenon in the cryptocurrency arena.

However, those bold enough to hold post-2023 for approximately 50–52 months may likely reap gains of over 500% i.e. BTC cruising around 20k-25k as per indications for our fundamental analysis insights. How would you act?

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