FaithMight - Page 15 of 78 - Market commentary and analysis insights. Brought to by FM Capital Group.

August 17, 2022August 17, 2022

Walmart Bulls Set To Recover

The opening price of Walmart at the beginning of 2022 was at $144.03 per share. Price ranged for the most part of January before the bears took control, although this bearish turn was for a short period of time. The first major support level of 2022 was at $132.02 per share which was in February. From that support level, Walmart’s bulls pushed price to a new all-time high in April at $160.77.

After the all-time high was reached, the next trading day opened with a bearish turn as price went as low as $117.16. This price doubles as both the current year’s low and the current support level. Since that year’s low, each time the price tried to rally, the bears counteracted the bullish movement. On the daily chart prior to the fall to the $117.16 support, there were a few gap downs which are yet to retrace.

On the 16th of August, there was a gap up from the close of the 15th. The close of the 15th was at $132.56. The opening price of the 16th was at $138.81, about a 5.1% increase in a single day. This gap up could be a light at the end of the tunnel for Walmart investors as it could lead to a rally to a new all-time high above $160. RSI on the daily chart indicates that price is oversold. The daily chart also shows that the candlestick is in the upper region of the Bollinger Bands.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stocks in your portfolio? Schedule a meeting with us here

August 17, 2022August 17, 2022

Bitcoin in 8-Week Bull Run

In 2021, we published two articles forecasting a huge price drop of Bitcoin. Here is the first article and the second article. In May 2022, we also published a follow-up article supporting the aforementioned forecast of Bitcoin dropping below $30,000. Price eventually fell to as low as $17,960 which has been the lowest price of Bitcoin since December 2020.

From the all-time high of Bitcoin that was hit in November 2021 at $69,150 to the 2022 low at $17,960, Bitcoin lost 74% of its value following that drop in price. A bounce occurred from the 2022 low of Bitcoin which happened in June, and this has led the price to rally to $25,200, which is an 8-week high for Bitcoin.

This rally might not be sustained as the last 3 weeks has been characterized with a lot of Doji at the top on the daily chart. Our analysts believe that price might fall again, but this time to a psychological level at $20,000. We could see this in the next few weeks. Looking at the weekly chart, RSI indicates that the price of Bitcoin is currently oversold. This oversold position might eventually lead to a price rally which could be the “shoot for the moon” that many analysts in the past months forecasted that Bitcoin will experience.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get crypto in your portfolio? Schedule a meeting with us here

August 12, 2022August 12, 2022

EURGBP: Euro Continues To Lose Against The Pound Post-Pandemic

During the lockdown in 2020, EURGBP reached a new high at 0.95043. That was the highest point for EURGBP since March 2009. Since that high in 2020, the Pound has been gaining against the Euro. As a result of the price fall, the resistance level of EURGBP in 2021 was at 0.87240. And the lowest price for that year was 0.83680.

EURGBP opened in 2022 at 0.84026. For the first quarter of the year 2022, price was in a range. Despite the range, a new low was seen at 0.82036. As we entered into the second quarter, there was a breakout from the range to the upside. This breakout led to price reaching 0.87227 in June and it currently is the resistance level for 2022.

On the same day the resistance level was reached in June, price began to fall. As at the time of publishing this article, EURGBP stands at 0.84609. Looking at the daily chart, the price has been characterized by lower highs and lower lows. EURGBP is currently on a lower high with a support level at 0.83396. In the next few days or weeks, we might be seeing a lower low which could break that support level to the downside. RSI on the 30-Minute Timeframe shows that price is overbought.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get currencies in your portfolio? Schedule a meeting with us here

August 9, 2022August 9, 2022

This Company Made 77% This Week, Karuna Therapeutics

Karuna Pharmaceuticals is a clinical-stage biopharmaceutical company focused on developing novel therapies to address disabling neuropsychiatric conditions. It specializes in research, development, commercialization of numerous central neural system agents and products targeted at a broad range of psychiatric and neurological conditions. The biotech, Karuna Therapeutics released its 2022 second quarter results yesterday, apart from this news, the karuna’s experimental psych medication, The share price appreciated 77% yesterday. The yesterday’s rally led to Karuna Therapeutics reach an all-time high at $245.00.

$KRTX had its IPO at $17.95 on the June 19, 2021. The price fell to a new low in October 2019 at $10.75. The previous all-time before the rally yesterday was at $162.00 which was in November 2021. There was a gap-up yesterday which led to the all-time high at $245.00. On the weekly chart, the RSI is already is already overbought. There could be a reversal from the all-time in the coming days. The price of $KRTX could fall below $200.

August 5, 2022August 5, 2022

SPX Continues To Rebound

In the second trading day of January 2022, SPX hit $4800 which is the all-time high. Afterwards, SPX experienced lower lows and lower highs which resulted in a fall in price to the 2022 low of $3635 in mid-June 2022. While SPX fell between January and June, it established a couple of resistance levels with the last resistance level before the year’s low being at $4179 which was in the beginning of June.

Since the 2022 current low of SPX which was reached in June at $3635, the price of SPX has continued to rally. This rally has taken the price above the $4000 psychological level. In the last 5 trading days, the price of SPX has been able to close above $4000 as the current price is at $4152. A breakout from the June resistance level may occur and price could reach $4200 but this is not guaranteed.

The reason why the upside movement of SPX can’t be guaranteed is because the momentum on the bulls is waning. On the flip side, whether price reaches $4200 or not, the bears might eventually take over and push price below the current low and a new low might be formed below $3635 as RSI is currently showing that price is overbought on the 4H timeframe.

August 3, 2022August 3, 2022

Global Recession And Its Impact On The US Dollar

A global recession is a downturn that affects many nations around the world i.e. a period of economic downturn or declining economic output. The IMF defines recession as a decline in annual per-capital real world GDP (Purchasing power parity weighted) backed up by a decline for one or more of the seven other global macroeconomic indicators: Unemployment rate, per-capital investment, capital flows, oil consumption, industrial production, trade, per capital consumption.

A simpler definition of recession is a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Here are reasons for a recession in 2022

High Interest rates
Stock Market Crash
Falling Housing Prices and Sales
Deregulation
War/Post-War Slowdowns
Wage-Price Control
Deflation and Inflation

The US Dollar against major currencies has reached its highest level since two decades. There was parity between the Euro and US Dollar last month for the first time in over two decades. Prices of major currencies have moved against the US Dollar in the past one week. These corrections in the price of currencies against the US Dollar might be temporary. So far in 2022, the US economy has done better than a lot of economies.

The Russian invasion of Ukraine has led to a sharp fall in global markets and caused a sharp increase in the price of energy, food, and other commodities. The economic sanctions imposed on Russia and the retaliation by Russia have limited global trades.

In the next few months, the US Dollar might appreciate further against major currencies, which could eventually slow down the effect of the recession.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stocks, currencies in your portfolio? Schedule a meeting with us here

August 1, 2022August 1, 2022

Hertz Share Price Jumps

Hertz Corporation is a subsidiary of Hertz Global Holdings, Inc. Hertz is an American car rental company based in Florida. The company operates approximately 12,000 corporate and franchisee locations, both domestically and internationally. Since Hertz had its IPO in October 2020, it has been a jolly ride for its investors. Price at IPO was at $1.20. At the time of IPO, global companies were gradually resuming operations post lockdown. There was a range in price from October 2020 to May 2021 where price moved between $0.43 and $2.69. After the breakout in price in May 2021, there has been a phenomenal increase in the price of Hertz. In November 2021, price reached $46.02, which stands at the all-time high.

RSI has shown on the weekly chart that price has been overbought since May 2021. Despite this indication, price rallied to the all-time high. The year’s opening price was at $25.96. The year’s current low is $15.33 which was hit in February 2022. The Hertz shares have not been doing so well this year because of the price ranging between $14 and $26.02. A gap-up occurred yesterday which made price reach the $20 psychological level yesterday. This could be a huge relief for investors in 2022. This rally might continue as price could hit $24 in the coming weeks.

July 25, 2022July 25, 2022

Snapchat Loses 39% Of Share Value In 24 hours

Snapchat had its IPO in March 2017 at $24. The first two trading days closed with the bulls in charge. The third trading day had the bears gaining traction and this traction transitioned into a full-blown bearish run up until December 2018. In that month of December 2018, Snapchat share price hit $4.88, which stands as the all-time low.

2019 began on a brighter note in comparison to the previous year as the first seven months of 2019 closed bullish. This bull trend couldn’t complete a year-long run as price ranged between $12 and $18. A few months into 2020, precisely in April, the bulls became active while price was about $11. On the monthly chart, a bullish steam picked up and it raved on until Snapchat’s share price hit $83, which stands as the all-time high. This all-time high was reached in September 2021.

Ever since this all-time high was hit, Snapchat’s share price has been falling heavily. Since September 2021 till date, all monthly candlesticks have closed bearish except for February 2022. So far, Snapchat has lost over 87% of its all-time high. Since May 24 2022, the price of Snapchat has been ranging between $11 and $15.

On the 22nd of July, 2022, a gap down occurred that resulted in a 39% loss in value as price fell from $16 to $9.97. The last time price got to this level was in March 2020 during the lockdown. In the next few weeks, we could see price rallying above $20 as price is currently oversold on the RSI.

July 19, 2022July 19, 2022

Gold Price Reaches A New 2022 Low

Gold opened in 2022 at $1830 per ounce and for the first part of the month, it was bullish. But then it changed direction and began to fall until it eventually closed on a bearish candlestick at $1796. As February 2022 began, the bulls got their groove back and were dominant for the next couple of weeks which caused February and March 2022 to both close with bullish candlesticks.

Gold price movements in 2021 was more of a range between $1907 and $1705 on the monthly time frame. The range was even more pronounced in the second half of 2021. The highest point Gold reached in 2021 was $1960. Looking at Gold this year, the highest point it has reached is $2067.

On the 23rd of February 2022, we forecasted that Gold may not be able to keep up the bullish rally (see article). We were correct on that call because since March 2022, Gold has been falling. On the bearish run, Gold’s price fell to $1699, which stands as the lowest point this year. In the publication referred to earlier, a support line was drawn at $1676 and our analysts believe that with the current bearish force on Gold, that support level could be broken to the downside.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get commodities in your portfolio? Schedule a meeting with us here

July 17, 2022August 19, 2022

UNCHARTED Podcast: Episode 6

In this episode of UNCHARTED Podcast, we discuss Cryptocurrencies, Commodities, Stocks, and the prevalence of the US Dollar on the Currencies Market.

On the Cryptocurrency front, we discuss Bitcoin, Ethereum and Solana, and what investors in this asset class could expect in the coming weeks and months. On Commodities, we discuss Gold, Brent Oil and WTI Oil. We also made some forecasts on both Oil and Gold. We then looked at S&P 500, Disney, and Coinbase on the Stocks front.

Watch and Enjoy.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stock indices in your portfolio? Schedule a meeting with us here