Commentary Archives - Page 22 of 66

November 27, 2021November 30, 2021

SPX Had A Price Correction

S&P 500’s opening price in 2021 was $3699.90. Price has been appreciating leading to different all-time highs. The SPX has done so well with return for investors as each month since the beginning of this year, there have been new all-time highs reached. The latest all-time high was reached at $4,745.40. This week has been very bad for $SPX has the price fell to $4,594.61 from the weekly opening price of $4711.61. Many stocks’ prices fell during the week as a result of the new variant of coronavirus discovered in South Africa named ‘Omicron’. A few countries are back to a lockdown to avoid the spread of the various. Countries are beginning to restrict movement to and from South Africa. As of July 2021, there are four dominant variants of the Coronavirus.

On the weekly chart, the $SPX closed this week with a bearish candlestick. Looking at the 2020 chart of $SPX, especially before the spike in the cases of Covid-19 globally, the then all-time high in February 2020 was at $3384.11, the price fell to $2210.48 in March 2020. Since the lockdown, the price has been appreciating as price doubled since the lockdown has been eased. The support level at the second half of this year is maintained at $4284.31. The weekly charts show the candlesticks are still in the upper region of the Bollinger bands despite RSI showing that the price has been overbought. The bulls are still very active despite the correction this week. The price of $SPX might appreciate in the next few weeks, which might lead to a new all-time high above $4,800.

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November 23, 2021November 23, 2021

Boeing Maintains The Same Support Level

Boeing has maintained the same support level at 205.15 since it broke out of the resistance level in November 2020. This breakout led to the price rally which reached $278.38 in March 2021. 2021 has maintained a strong resistance at $278.38. Price has failed to reach the resistance level since march, instead, the price has touched the support level at least three times. In this month of November, the price has broken the trendline to the upside, which could be an indication of a possible rally to the resistance level at $278.38. The breakout of the trendline lasted for a few trading days before the price dipped to $211.00, which is the current price of $BA.

Before the dip in March 2020, which as a result of the pandemic, the price of $BA reached an all-time high at $447.17 in March 2019. After the all-time high, the price dipped to $89.22. The fall was the worst fall since $BA went public losing about 80% of its value. In March 2020 after the lockdown has been eased, and the airline industry began operation globally, the $BA share price begins to appreciate. The market closed yesterday at $211.00. The price of $BA could appreciate to $267.59 in the coming weeks as the holiday and vacation season resumes.

November 22, 2021November 22, 2021

The Next Bullish Run of Disney

The Disney share price is one of few stocks that has lasted over 50years and still brings returns to its investors. There was a setback to the Disney price in December 2019 after the price reached a new all-time high then at $154.16. Disney lost about 50% of its share value between December 2019 and March 2020, which was a result of the pandemic, making it the worst price dip since its IPO. After lockdowns were eased across the world, price began to appreciate. The price appreciation broke out the then resistance level at $154.16 to a new all-time high at $203.12 in March 2021. Since the worst fall of Disney during the 2020 pandemic, $DIS has appreciated almost 2X of its return.

In the last month of 2020, the price broke out of the resistance level at $154.16 which led to the price reaching the new all-time high at $203.12. Since the all-time high was reached, the $DIS share price has lost about 31% of its value. In this month alone, $DIS has lost about 15% of its value. Should investors be worried about the price fall? The recent price fall could not break out to the downside of the support level at $154.16. A possible correction around the support level might occur which might eventually push the price of $DIS to $175.72.

November 19, 2021November 22, 2021

Some Analysts Said ‘Bitcoin To The Moon’

Despite several forecasts of BTC to reach $100,000 or $200,000, BTC has failed to reach $70,000 with the recent bull run. BTC reached an all-time high at $68,999 on November 10, 2021. Most times when Bitcoin dips, other cryptos follow the same direction. Bitcoin had a previous resistance in April 2021 at $64,898. After the April all-time high, the price dipped by more than half as the price reached $28,764.37. This year support level for BTC is at $28, 731. A breakout of the April resistance at $64,876 was reached in October, which pushed the price to the most recent all-time high.

At two different times between September and October, the price of BTC using the RSI shows that price has been overbought. Price has crossed to the lower region of the Bollinger bands. El Salvador has adopted Bitcoin as a legal tender. Some other countries like Panama, Ukraine are in the race to adopt Bitcoin as a legal tender. In a situation where Bitcoin price drops below the price it was acquired, this might affect the economy of the countries as the purchasing power will be affected.

There are indications that the price of BTC falls below $30,000. This might be a bad one for the El-Salvador economy as it will be below the price it was initially bought. A breakout to the downside of the support level at $55,851 might push the price to $29,000.

November 18, 2021November 18, 2021

WTI Oil Price Falls

The oil price reaches $85 on the 25th of October, this milestone was last reached in October 2014. Ever since the price fell in 2014, the price was not able to break the resistance at $77 until October 2021. It has been a good year for countries producing crude oil as price increases as resistance has been broken to the upside. The 2019 and 2020 resistance have been broken to the upside in 2021. As the advocacy has increased for the world to use green energy has increased over the years, this might pose a threat to the price of $CL. The sharp drop of the $CL price during the 2020 global lockdown took the price to $0 per barrel. The Oil price has generated about 80X for investors since the rally from the lockdown dip.

The current price of WTI crude oil price is $78.55. The price might increase after a fall to a six-week low at $77 this week. The breakout from the support level to the downside which occurred yesterday might be a fake-out. A rally might occur as we are moving towards the holiday season, the demand for crude oil products might increase. The price might reach $80 and beyond in the next weeks.

November 15, 2021November 15, 2021

ON THE AIR with ForexAnalytix

I had a great time with Dale Pinkert over at F.A.C.E. a couple weeks ago. It has been awhile since I have shared my thoughts with an audience in that way. Dale and I go way back so we gist a bit but the chat kept us on topic LOL. You can see the highlights on Instagram already if you follow us there.

Jump to the 24:40 mark to hear my thoughts on:

$EURGBP in a failing rally that is still playing out this week
$GBPJPY buy opportunity
How the almighty dollar has been a both a winner AND a loser
And, venture capital in Africa. I’m grateful to Dale for honoring my growth into other asset classes and his willingness to learn about them all. This is why investors and traders, alike, love to speak with Dale.

November 12, 2021November 12, 2021

EURCHF Is Set For A Rally

The EURCHF pair has maintained a support level at 1.05148 for over 5 years. Since the beginning of the pandemic in the year 2020, EUR has gained more than the CHF, as the price moved from the support level at 1.05148 in May 2020 to a new resistance level of 1.11540 in March 2021. From March of this year, the Swiss Franc appreciated against the Euro as price reached 1.05291, a few pips away from the support Level from the resistance level of 1.11540. The weekly chart shows a double bottom which might lead to the next rally, as $EURCHF appreciates.

On the other hand, the 1hr chart shows the price of $EURCHF has been ranging between 1.06741 and the support level of 1.05148 since the beginning of November 2021. A breakout of the range might occur if EUR appreciates against the CHF. RSI shows that the price has been overbought but no trace of the price being oversold before the next rally. A breakout of this month’s resistance level might push the price to the next major resistance level at 1.07034.

November 9, 2021November 9, 2021

USDJPY Broke Support Level After Weeks In Range

In October 2021, the $USDJPY pair closed above 113.830 since November 2018. Price closed at the highest level in the last 3 years at 114.358 on the 19th of October. $USDJPY has maintained its price around 102.862 since 2016. On the weekly chart, there are above 5 times in the last 5 years that price tried to touch and break the support, but it eventually led to a bounce. The most recent bounce occurred between December 2020 and January 2021. It has all been bullish for the $USDJPY in 2021. The trendline has been drawn from 2016 to 2021, which shows there is a breakout to the upside. This breakout of the trendline occurred in June 2021. RSI on the chart still shows that the price has been overbought in two different cases. Will this lead to price reversal?

The 4hr Chart has shown that price maintained a support level at 113.253 since a breakout to the upside occurred in the first two weeks of October 2021. Price has been raging between 113.253 and 114.655. The support level was broken to the downside this month. The breakout might be a fakeout, as the price is beginning to consolidate as USD has been gaining against JPY in the past few days. The price might appreciate to 113.690 in the coming weeks from its current 112.904

November 4, 2021November 9, 2021

Coca Cola Acquired BodyArmour, Kobe Bryant Made A Wise Decision

Before the death of Kobe Bryant, he earned a total of $323.3 million in NBA salary in his 20 years as a professional basketballer. In March 2014 Kobe decided to invest in the sports beverage company BodyArmor. Kobe paid $6 million for a 10% stake in BodyArmor. In August 2018, Coca-Cola bought 15% of BodyArmor for $300 million. At that point, Kobe’s $6 million investment had turned into $200 million on paper. Kobe’s $6 million investment in 2014 is now worth $400 million after Coca-Cola took complete ownership of the brand.

Now looking at the Coca-Cola stock, the month of October was uncertain for $KO investors as prices ranged between $53.76 and $54.87. Towards the end of October, there was a gap-up to $55.44 from the range. Since the announcement of the acquisition of BodyArmour, the price of $KO has continued to appreciate.

On the daily chart, the trendline has not been broken to the downside since the beginning of the year. The price of $KO tried to touch the trendline with a dip in February and October, but the bulls overpowered the bears. RSI has shown that the price has been oversold in October. This is an indication of a possible rally, which might reach this year’s resistance at $57.58. The recent take over of BodyArmour by Coca-Cola might also lead to increase sales of the BodyArmour, which can only help the stock price further.

November 4, 2021November 9, 2021

Opendoor Is About To Open A Bullish Door For Investors

Opendoor Technologies Inc is an online company for transacting in residential real estate headquartered in San Francisco. Now, many real estate investments have done quite well since the lockdown. $OPEN’s IPO price in June 2020 was at $10. Since the IPO, the price has been able to reach $40, which is 4x, before this year’s price drop to the support level at $13.60. The all-time high price of Opendoor is currently at $39.77, which was reached in February 2021. Hope might be rising for investors as the second half of the year has brought about a significant rally in the price of $OPEN from the support level at $13.60 to the most recent high at $25.45.

The candlesticks have crossed to the higher region of the Bollinger Bands on the weekly, which signals that this could be a continuation of a rally. But in the last 3 trading weeks, the price is yet to breakout of the second half of the resistance level at $25.24. This week looks like a bearish one for $OPEN investors, as almost all gains in the month of October have been lost in the last 4 trading days.

A range in price has been occurring since May 2021, when the share price fell close to the IPO price at $10. The price range is between $13.48 and $18.56. Price of $OPEN closed on Wednesday at $20.86. If more bulls invest in $OPEN, the price might reach a new resistance at $30.56. The 4hr chart shows price has been able to breakout to the downside with this week’s correction. It could be a fake breakout.