FaithMight - Page 18 of 78 - Market commentary and analysis insights. Brought to by FM Capital Group.

May 19, 2022May 27, 2022

Tesla Share Price Continues To Fall

Since April 2020, the charts on Tesla have been bullish. This upward trend occurred in spite of the pandemic that crashed many stocks. The price at the beginning of the bull run in April 2020 was $100 per share after the stock split. (Please note that all prices are quoted since the stock split in August 2020). This continued until the end of the year despite little corrections in between. The $TSLA price soared on this bullish energy to an all-time high of $1,245 in November 2021.

There has been a huge correction since the all-time high in November 2021 as price has been falling. This bearish run saw a little bullish movement which occurred in March 2022 with the price experiencing a temporary rally. The bulls, however, were counteracted by the bears and the price continued its downward trend. In Q4 2021, our analysts concluded that the share price of Tesla could go below $1000 after reaching a new high at $1092 in October 2021.

Tesla’s price is currently at $709.81 per share. The worst closing price on the monthly chart since May 2021 was $625. This bearish run might push the price down towards $600 per share. RSI has indicated that the price has been overbought on both the weekly and monthly charts since November 2021.

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

May 17, 2022May 26, 2022

USDJPY Reaches New High In 20 years

Looking at the Monthly chart, the lowest price ever that USDJPY reached was 75.486 which was in October 2011. This price became the support at that time and it lasted from that time up until February 2012. Price began to rally in February 2012 and USDJPY has been majorly bullish ever since then, with little pushback from the bears which occurred in 2016.

In 2015, resistance was established at 125.647 but this correction that occurred in 2016 caused a dip in price to 99.009. In 2017, the pair got caught in a range that stretched until 2021. The upper limit and the lower limit of the range were 118.382 and 101.162 respectively. In 2022, this range was cleared up and the price broke 2015 resistance, which reached a new high at 131.298 in April 2022. The last time USDJPY hit this mark was in April 2002.

As of May 17, 2022, USDJPY is at 129.346. On the daily, weekly, and monthly charts, RSI is overbought. This means that, from a technical analysis standpoint, price looks to fall below 127.500 in the coming days.

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

May 13, 2022May 17, 2022

Investors Lose Big As Cryptocurrency Market Crashes

Pandemonium has taken over the cryptocurrency space as Bitcoin and its counterparts plunge drastically while others have crashed completely. Many investors in cryptocurrency have been caught unawares by the sharp fall of most cryptocurrency assets in the last few weeks. Here is an outline of how much value (in %) the major cryptocurrency assets have lost in the last 7 days:

Bitcoin, the crypto with the highest market cap, has lost 27%
Ethereum has lost 32%
Binance coin has lost 32%
Ripple has lost 39%
Cardano has lost 44%
Solana has lost 50%

The price of Luna at the beginning of the week of May 9, 2022 was $63. As of May 12, 2022, Luna was at $0.12 which is about 99.8% loss of its value in the last 7 days. So far, this is the biggest loss of all Cryptocurrency assets. Before this crash, Luna was the 6th largest cryptocurrency by market cap. As a result of this crash, it has lost that position.

Looking back, Bitcoin surpassed $1Trillion in April 2021. As it stands right now following the crash, Bitcoin has lost over 50% of that all-time high market cap. However, Bitcoin still maintains the number one spot in the Cryptocurrency market with a market cap of $544Billion. As of today, May 12, 2022, Bitcoin is currently at $28,000.

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 cryptos in your portfolio? Schedule a meeting with us here

May 11, 2022May 11, 2022

Silver Price Hits New Low

The price of Silver had a smooth bullish run post-Covid. The support level of Silver in March 2020 was $11 per ounce. Price rallied to reach $29 per ounce in August 2020. After Silver’s price hit $29, it has since been consolidating. That is to say, Silver’s price has been ranging between $21 and $29. This range has spanned from August 2020 till now.

In March 2021, a rally occurred that pushed the price to $30 per ounce, but the momentum wasn’t sustained and the price reverted back into the range. In March 2022, we published an article where we forecasted that Silver’s price rally (and the rally of other commodities) will not be sustained. On March 7, 2022, Silver’s price was at $25.555 per ounce.

Just as our analysts forecasted, the rally was only able to push the price to $26 after which it began to fall and at the close of May 10, 2022, it was at $21.172. From a technical standpoint, RSI shows that the price has been oversold on the daily time frame. The bearish run might still continue as Silver’s price could reach $20 per ounce.

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.

May 9, 2022May 9, 2022

Bitcoin Drops To A New 2022 Low At $32,670

Bitcoin opened in 2022 at $46,196. At the end of January 1st, 2022, Bitcoin closed at $47,795. This price is the highest that Bitcoin closed for this year. Since the second day of the year 2022, the bears have been aggressive toward the Crypto king. In the last week of March 2022, the price rallied above the $48,000 psychological level but the price still maintained the highest close of the year at $47,795. While this rally was building up, the bears snuffed out the steam that was brewing in the bulls and dragged the price further downwards.

Back in 2021, the price of Bitcoin hit an all-time high of $69,000 in November 2021. Many investors and potential investors were looking forward to investing more at this point as analysts all over the world were forecasting a strong bullish run. But to their greatest surprise (and disappointment), Bitcoin’s bulls couldn’t hold the reins for long and the price began a descent that would last for the next three months. Candlesticks in November 2021, December 2021, and January 2022 all closed on bearish notes.

Earlier in 2021, El Salvador adopted Bitcoin as a legal tender and many analysts were optimistic of Bitcoin’s price reaching $100,000 as they expected other countries to follow in El Salvador’s footsteps. On October 12, 2021, we published an article on the dangers of Bull & Bear Traps. On that day, the price was $57,200. We made a forecast that Bitcoin’s price could go below $30,000. On November 19, 2021, following analysts’ forecast that Bitcoin could hit $100,000, we published another article reinstating our bearish stance. On that day when we published the article, the price was $58,229. Our analysts, however, were confident in the forecast that was made and we stuck to our prediction.

At the beginning of May, Bitcoin opened at $37,664 to reach May’s high of $40,000. But the past 7 days have been in favor of the bears and BTC has dipped below $33,000 making it hit the lowest point of the year at $32,670. Bitcoin’s current move is in perfect alignment with our forecast for Q4 2021 and we still stick to the call that BTC will go below $30,000.

May 6, 2022May 9, 2022

UNCHARTED Podcast: Episode 4

CRYPTOCURRENCY: An overview of the Crypto market

CRYPTOCURRENCY: Analysis of Bitcoin & Ethereum

In this podcast episode, we did a general review of markets. First, we extensively discussed Cryptocurrencies. We looked into Bitcoin and Ethereum and the recent stagnation. We also did a forecast of the direction that these major Cryptos may move in the coming months. We touched on Solana and the impact Bitcoin has on all cryptocurrencies. Here’s a forecast on Bitcoin we made some months back.

CURRENCIES: The Impressive Run of the US Dollar and how Risk-Aversion is contributing to it

CURRENCIES: Depreciation of world currencies and their reliance on the USD

CURRENCIES: US Dollar as a Safe Haven, GBPUSD, & NZDUSD

CURRENCIES: Possible causes for USD rise and Inflation

CURRENCIES: US Economic Strength and quarter-over-quarter GDP growth

CURRENCIES: Recession Fears & USDJPY

We also took a dive into the world of Currencies, specifically the United States Dollar. The Dollar has been dominating the world of currencies. Despite inflation rates being sky high, the Dollar seems to be doing relatively well when compared with other major currencies. We also discussed the Central Banks and their reactions to the inflation their respective countries face.

COMMODITIES: An overview of Gold & Silver

COMMODITIES: USD vs Gold, which is the Safe Haven of Choice?

We closed this episode on Commodities. During times of crisis, it is expected that people will hedge their funds in Precious Metals but this isn’t what we are seeing. Investors are hedging their funds in USD and investors from emerging markets also see USD as a safe haven as opposed to Gold and Silver.

May 2, 2022May 4, 2022

Coinbase Share Price On A Catastrophic Descent

Coinbase was one of the most promising stocks of 2021 because right on the first day it launched on NASDAQ, its share price shot from $379 to $428 in less than 24 hours. This price rise led many investors to buy into Coinbase as they expected the price to keep up the bullish momentum. However, it seems fortune was not on the side of Coinbase after all.

For the first 6 weeks post-IPO in April 2021, the price began its descent, but investors didn’t worry. The price then began to range from that time until October 2021. At the end of October 2021, the price closed at $318. Afterward, the price began a long-awaited rally that pushed the price to $368. But this price will end up becoming the high in Q4 2021. Since then, Coinbase’s price has been remarkably bearish. Despite being the month of its high, November managed to close on a bearish note. The months that followed – from December 2021 to April 2022 – have all closed with a bearish candlestick.

As mentioned earlier, Coinbase’s price has been majorly bearish since the end of the IPO day on April 14, 2021. All investors that bought Coinbase post-IPO day are at a loss, and the loss seems to be getting worse by the day as the price plunges to the $100 psychological level. RSI indicates an oversold position on the daily and weekly time frames which could be an indication of a possible rally. Our analysts look forward to the formation of an inverted head and shoulder pattern on the charts. If this happens, bulls can pick up some steam and push the price above $200.

April 29, 2022April 29, 2022

A False Surge On Dogecoin

Dogecoin is an open-source cryptocurrency that was started in 2013 by Jackson Palmer and Billy Markus. Dogecoin was created as a “joke” by these two software engineers in a bid to make fun of the wild speculation of cryptocurrencies at the time. This is partly the reason why it is considered to be the first “meme coin”. Dogecoin was launched at an initial price of $0.0005588.

Currently, the market cap for Dogecoin is $18.13billion while the average daily transaction is over $1billion. One of the biggest investors of DogeCoin is Elon Musk. Dogecoin had little volatility since 2014 and it stayed below the resistance of 0.0188. In January 2021, there was a breakout to the upside and the price continued to rally for about 5 months till it reached its all-time high in May 2021 at 0.7612. Ever since this all-time high was attained, the price of Dogecoin has continued to fall. The support level for the year 2022 sits at 0.1097.

RSI shows that price has been overbought on the daily timeframe. Just recently, as a result of the takeover of Twitter by Tesla’s boss and richest man in the world, Elon Musk, the price of Dogecoin rallied mainly due to the fact that Elon holds a substantial amount of Dogecoin. The previous rallies of Dogecoin in the past have been attributed to Elon’s tweet and there have been speculations that Twitter might integrate Dogecoin as one of the acceptable currencies for transactions.

Dogecoin rallied by 20% on Monday, 25th of April, 2022 as a result of the Twitter buyout. But this spike was short-lived as the price dipped to 0.1366. Our analysts don’t see the price of Dogecoin appreciating soon because Bitcoin as the “King of Cryptos” has a way of influencing other cryptocurrencies. Bitcoin has failed to rally in recent times and has not been able to break the $50,000 psychological level to the upside as the bears have been more dominant.

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-currencies in your portfolio? Schedule a meeting with us here.

April 28, 2022April 28, 2022

Dow Jones Falls Below $34,000 Psychological Level

Dow Jones experienced a comeback rally after the global lockdown of 2020 was eased. As of January 2020, the price of Dow Jones was at $21,618. Price was able to reach a new all-time high on January 5, 2022, at $36,991 which was close to the $37,000 psychological level. Ever since this year’s high was reached in January, Dow Jones bears have been aggressively active. Attempts by the bulls to push the price higher have been overpowered by the bears.

This year’s support currently stands at $32,296 which is over $4,500 lower than the all-time high. In March 2022, the price rallied to $35,368 which was March’s high. After March’s high, the bulls couldn’t push the price further upward as the bears seized back the momentum and caused the price to dip to $33,103. However, the price has risen a bit and is currently at $33,301.

RSI on two different occasions has shown that the price has been oversold on the daily timeframe. Despite these indications, the bulls have failed to push the price above $36,000. However, our analysts forecast that the bulls in a couple of weeks might manage to push the price to $35,000 and even beyond.

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.

April 22, 2022April 22, 2022

Netflix To Rally Despite Sudden Price Dip

Netflix reached its all-time high at $701 in November 2021. Since then, the price has plummeted dramatically over the last 5-6 months. This huge slump has taken the price to $218, making it the worst fall ever. This fall is about a 70% loss from the all-time high of $701. As a result of the price fall, Netflix investors are yet to make a profit this year.

On the daily chart, a gap down occurred on January 21, 2022, from $507 to $399 and the price is yet to retrace. In the process of the price falling during this gap down, it hit a target we forecasted in an article we published in August 2021. Another gap down occurred on the daily chart on April 20, 2022, from $333 to $246. As of April 21, 2022, the price closed at $218 as a consequence of this last gap down, thereby making $218 the most recent support. Price last hit this point in January 2018.

In the last few days, $NFLX reported a loss of over 200,000 subscribers in Q1 2022. There are speculations that Netflix will lose over 2million customers in Q2 2022. Despite speculations, we foresee a price rally and we expect both gap-downs to be filled. This price rally should take the price to $387.