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Author: @dayomabinuola

Temidayo Mabinuola is an entrepreneur, Financial Trader and former Investment Associate at FM Capital Group. His knowledge and expertise on trading instruments is fueled by a passion for markets. In his time of learning forex trading, he fell in love with the use of technical analysis over fundamentals. He has been a guest on Channels Television on the program, NETWORK AFRICA. Dayo is a graduate of Banking and Finance from Redeemer’s University earning his Bachelor of Science degree. You can follow him on Twitter and Facebook.
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Microsoft Price Couldn’t Break The Support Level

The unfortunate death of Paul Allen prompts a look at $MSFT. Allen’s $MSFT has enjoyed a smooth ride on a bullish flow this year reaching an all-time high in the stock market. The bullish movement brought about multiple higher lows in price movement. Companies like Apple and Amazon have had a good year so far for long-term investors. Price of $MSFT has reached overbought positions twice this year on the weekly chart. Instead of a change of trend downwards, price continued higher to the 116.00 level before a downward trend began. This move couldn’t break the support level. Price rallied off the support level.

A bullish breakout occurred from the trendlines, which might be a good opportunity to buy $MSFT. RSI has not showed an oversold position on the weekly chart. Ever since price broke out the 105.12 level, price has never gone below this level. The future of Ichimoku also shows a bullish future. The bullish trend is expected to continue.

Source: Microsoft Co-Founder Paul Allen Dies of Cancer At Age 65(CNBC)

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Price Of Gold May Rise

The price of Gold went down mid-April after several lower highs. Price was able to break the support level in August that resulted in a range in price. A look on the RSI indicates an oversold position since August which implies an upward movement of $XAU price. The last time price went this low to 1175.00 was in December 2016. Price of $XAU still maintains the lower section of the band despite indicators showing a reversal higher. Three weeks ago, price began an upward movement up until now.

The trendlines A and B have a breakout higher at level 1190.2. Price of $XAU is expected to touch the resistance level at 1280.71. This should occur in the coming weeks. The $XAU price movement was able to reach a ten-week high this week. A breakout of the resistance level could bring about a continuation higher in $XAU for a while longer. Investments in $XAU at this point could be a profiting one for buyers.

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USDCHF Touches Resistance Level Again

After a long range in price movement from May to August, price of $USDCHF decided to go downwards in mid-August. This downward movement was about 400pips. The downward trend came to an end in September 21st when price consolidated. At this point, more sellers of the $USDCHF are preparing for another profit gain. Price is expected to go downwards to the 0.9765 level. This movement should reach about 250 pips..

Though price is presently in range on the daily time frame, $USDCHF has broken out the trendline indicating a reversal in favour of the CHF. With the RSI, price has not been overbought. Indicators shows price is ready for a downward movement. Price ranges on the upper part of the band, awaiting a reversal. There are very few $USDCHF buyers presently in the market.
SUMMARY

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EURUSD Begins A Bullish Movement

$EURUSD price movement has not been volatile for few months. For about 5 months, price has been ranging between 1.1811 and 1.1314. This is range about 500 pips. $EURUSD might be preparing for a major bullish movement. A bullish movement started in August and touched the resistance level before a change of trend downward. After this bearish movement, price rallied off the support level. At this point a head and 2 shoulders have evolved. This signals another move to the downside.

Trendlines A and B obviously have a breakout upward. If this breakout is not a fake-out, then $EURUSD might generate at least 250 pips to 1.1770. A breakout of the resistance level might be a major bullish movement. Price on the RSI already has repeatedly been oversold in June and August. This might be a good time for traders to go long on the $EURUSD.

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Walt Disney Consolidates Again At A Resistance Level

Walt Disney maintained a major resistance level around 122.00 in 2015. Recently, price was in a range on the daily chart for two months until an upward breakout occurred. In the first week of August, price of $DIS was around 117.45. Technically, price has formed a double top which might bring about a new downward trend. If $DIS price doesn’t continue the upward movement, an obvious reversal might result to price moving from 118.03 to about 108.00 Also, if price breaks out upward and goes beyond 122.00, a new resistance level will automatically be formed.

RSI previously showed price was overbought in August. Price touched the resistance level and pulled back for a correction off the highs. Also, price broke out from the trendlines A and B, so a downward movement has begun. This downward price action might be a fake out, Watch for the resumption of the up trend around 118.03 when price closes upon the resistance level.

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Buyers Are Optimistic In The Growth of SPX

Stocks in the $SPX are yet to relax in the uptrend this year. A buy in the first quarter of the year could have resulted into meaningful gains by now. Howbeit, for the past 3 weeks, price has been in a range on the weekly chart. Last week, $SPX got to the highest price level ever. This is highly profitable for long term shareholders. Despite reaching an initial overbought point in January 2018, price has refused to fall. Instead momentum for an uptrend increases. $SPX was a bit above $2,930.00 last week. Price of $SPX might reach $2,990 before a complete change of trend.

Analysis with the weekly chart technically shows Ichimoku has a future uptrend. Price maintains the upper region of the bands. Price, after breaking out from the downtrend, is yet to be overbought. Price broke out from the support level last week and tried to retest on the line before a new breakout in the upward direction occurred this week, which might indicate a continuous uptrend.

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Share Price of Coca-Cola May Fall

The share price of Coca-Cola reached a new high of $47.00 in September since January 2018. This major uptrend started in May 2018 gaining about 600 points. $KO are now in talks over cannabis-infused drinks. The company’s plan for this, is to reduce pain, not intoxicate consumers. This might lead to $KO losing some of its loyal consumers. $KO is known mostly for its soft drinks. Even adding a bit of drugs like cannabis could discourage regular buyers from drinking $KO products. Being a global brand with competitors, $KO will have to monitor its goodwill which has appreciated over the years.

A breakout already occurred from the trendlines, making the price of $KO to depreciate. $KO might lose 400 points in the weeks to come. This could be caused by the release of the cannabis-infused drinks. Price has not been able to move above the resistance level before relinquishing strength. Price has touched the upper band at least twice and never touched the lower band. Price might touch the lower band if a downtrend resumes. RSI indicates an overbought share price of $KO. Price has not been able to move itself to the upper section of the band. Sellers could take over the market of $KO.

Source: Coca-Cola ‘In Talks’ Over Cannabis-Infused Drinks(BBC)

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Australian Dollar Depreciates Further Against The U.S. Dollar

Ever since January 2018, the Australian Dollar has been losing to the U.S. Dollar. This has resulted to several lower highs and lower lows. The last time the $AUD got to this point was in November 2016. And it was a major support level. In between these years, the momentum of price was not one-sided. Now, as the $USD gains from the $AUD, there is no trace of price been oversold. The downward movement has attracted about 1000 pips since January up till now. The $USD might still gain at least 100pips.

No doubt, the $USD has gained so much in 2018 against counter currencies. Price movement has only maintained the lower section of the band for a long time and not yet oversold on the RSI. Recently, there was a breakout downward of the support level. A reversal towards the uptrend started also when price touched the lower band line. This could be a temporary reversal because several dojis are formed. There are few times price tried to move upwards to the higher band, it retraces back to the lower section indicating a larger volume of sales going on in favour of the $USD. As it looks, the $AUDUSD might continue the downward movement.

 

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Ethereum Buyers Lose Interest

Hope was temporarily restored to the buyers of Ethereum in March 2018 after the heartbreak late last year. Not quite long, the hope dwindled in April 2018 when a downtrend began. Many people have lost hope in cryptocurrencies generally due to the unforseen nature. RSI shows two oversold points on the chart but the momentum for downward continuity is still high. The present price level for $ETHUSD is at 217.50. If price moves downward, the next support level should be around 170.00. Any breakout of price below 170.00 could lead to a major fall of $ETHUSD.

Meanwhile, since there was a breakout downward from the resistance level, price has not been able to find itself back above the resistance level. The trendlines A and B also shows another mini breakout has occurred for a continuous downtrend. The oversold points on the RSI could be deceptive for a buy. Only scalpers can benefit now from the upward movement. The price fall of $ETHUSD might not be debatable in the next few days.

 

 

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AMAZON LOSES GRIP

Only Amazon and Apple have been able to achieve a market cap of $1Trillion. Upon this achievement, there have been several issues around $AMZN based on new tariffs by President Donald Trump. $AMZN shares have been falling bit by bit due to tariff imposition announcement. Investors might be having double mind in investing in the $AMZN shares. I see the trade wars escalating because of the 25% tariff on imported goods on January 1st.

The candlesticks are forming a head and two shoulders which typically means a downward trend is about to begin. RSI shows price has been overbought at two different times. Price has been consolidating for the past 6 weeks at the same resistance level. Trade wars are obviously affecting the share price of $AMZN negatively. The share price of Amazon might fall heavily after the tariff news is released.

Sources: Reuters America Global Markets New US. Tariff Threat On Chinese Goods Hits Stocks, Dollar ( CNBC)

US China Trade War Trump to Propose 25percent tariff on Chinese imports(CNBC)

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