FaithMight - Page 23 of 78 - Market commentary and analysis insights. Brought to by FM Capital Group.

January 13, 2022January 14, 2022

Microsoft Bounces From The Year’s Support

After the all-time high of Microsoft was reached on the 22nd of November, 2021, the price has continued to drop from the highest close on the 28th of December 2021 at $343.00. From the trendline drawn from the all-time high in 2021, the price is yet to break it to the upside. Microsoft investors have little or nothing to worry about, as the price has appreciated in the last two decades.

Just recently, Microsoft hired a top Apple Engineer, Mike Filippo, to work on custom chips as it looks to expand its own server-chips efforts, according to people with knowledge of the matter. Filippo’s exit is a huge loss to Apple after he has served as a top designer of semiconductors at ARM for a decade. Microsoft’s 2022 opening price was $335.24. The $MSFT bulls have failed to show up since the holidays were over. Price keeps falling as low as $304.78 on the 10th of January, 2022, making it the year’s support level. A gap-up occurred yesterday from $315.06 to $319.57. This might lead to price recovery as our analysts look forward to the price of Microsoft reaching $341.48.

There is no indication of price reaching a new all-time high as we look forward to receiving the earning report of Microsoft on the 25th of January 2022. On the daily chart, RSI shows the price is overbought while on the 1hr chart price is currently oversold. The hire of Filippo might boost the share price of Microsoft in the coming weeks. The trendline 01 on the chart shows that price is on a bull trend despite the bad start in 2022. RSI though shows price is overbought on the chart.

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January 7, 2022January 7, 2022

Is the New Covid variant, IHU, a threat to WTI Oil price?

On the 18th of November 2021, our market analysts forecasted that WTI Oil prices will rise to hit $80 per barrel after the price fell temporarily in November. This forecast was dead-on! 2021 opened at $48.29 and the year closed at $75.12 which is approximately a 56% appreciation. It is probable that the continued rise of the Oil price is linked to the low impact of the previous variant, Omicron. Since the start of the new year, the oil price has continued its bullish movement and so far from the first week of trading, it has appreciated by 6% from $75.12 which was the year’s opening price.

As nations record increasing cases of the new Covid-19 variant, IHU, the oil market is bracing for a price dip even though OPEC signals confidence in the oil price. Some news outlets report that due to the new variant, there is uncertainty surrounding the demand for oil in the next couple of weeks. Since the ease of lockdown of 2021, the price of crude oil has maintained the support level at $61.63. According to our analysis, we forecast an oil price dip to $67.50 even though there are no indications yet. On the 4hr chart, the oil price is in the higher region of the Bollinger bands. Despite the price of crude oil is showing that it was overbought in December, the price is yet to reverse.

January 5, 2022January 6, 2022

S&P 500 And Dow Jones Reach A New All-Time High

In our November article on S&P 500, the price had a correction as our analysts forecasted that $SPX could reach a new all-time high at $4800. The $4800 forecasted price was surpassed as the most recent all-time high is at $4824.53. Many stocks in the SPX appreciated around this time. SPX has been able to make 1X since the pandemic lowest price at $2210. The current price of SPX is $4793.53 after the price closed yesterday lower than the all-time high at $4824.53.

The new variant of the coronavirus named ‘IHU’ detected in France might likely pose a threat to the index, which might lead to a price fall. A sell-off might occur which could make the price of SPX fall to $4384.23. Despite the new all-time highs in the past months, SPX on the RSI has shown that price has been overbought multiple times since April 2021.

Dow Jones on the other hand made almost 1X the pandemic low at $18366. The Dow Jones recorded a new all-time high yesterday, being the second trading day of the year. There is no indication of a possible reversal. Early in December, our analysts forecasted the Dow Jones to reach a new all-time high. The new all-time was reached yesterday at $37,000. A correction might take place.

As SPX had a price fall on the second trading day of the year, Dow Jones extended its rally to a new all-time high at $37,000. The only threat to the continuous rally of the $DJI could be the new variant ”IHU’, which health officials found it has 46 mutations. These mutations are more than the omicron. The price still maintains the upper region of the Bollinger bands. The $DJI might continue its rally for the next few days or weeks.

January 5, 2022January 5, 2022

Apple Market Cap Hits $3Trilliion

Apple becomes the first company in America to reach the new milestone of $3Trillion Market Cap. The technology company has done tremendously since the pandemic. The pandemic lowest price was $53.32. The current price stands at $179.70 which is a day after the all-time high at $182.93 was reached. Therefore, investors have gained about 3x since the pandemic low. Since Tim Cook became the CEO of Apple on the 24th of August 2011, there has been a massive rally in the share price of Apple. He has been able to achieve about 10X in the last decade. The market cap has jumped from $340billion to $3Trillion. Apple investors have been enjoying a jolly ride due to good leadership.

In December 2021, our analysts concluded that the price of $AAPL should reach a new all-time high, which might eventually take the market cap to $3Trillion as a result of continuous profit-making. Going forward, a correction might occur which leads to the market cap dropping from $3Trillion. Apple’s share price might drop about 18% in the coming weeks, which might eventually bring the share price down to $149.07, a level below the September 2021 all-time high of $157.55. Since the latter months of 2019, the price of Apple has been overbought multiple times, as the price only had a few corrections. Meanwhile, there is no indication of price reversals.

January 3, 2022January 3, 2022

Evergrande Ended 2021 On The Worst Price Ever

The Evergrande is the second-largest real estate company in China. The Chinese Evergrande did its IPO in November 2009. The share price ranged between $1.93 and $8.45 between the years 2009 and 2017 until a breakout occurred in May 2017 when the price broke the previous resistance level of $8.45. Evergrande had the best year in 2017 as the price at the beginning of the year was at $5.01 which later closed at $26.96 at the end of the year, after the price reached an all-time high at $32.50 in the same year. Since the all-time high was reached at $32.50, the chart has been showing lower highs and lower lows.

In the early months of the global lockdown in 2020, Evergrande’s share price dropped from $21 to $10 before recovery began which later took the price to $28.01 in 2020. Since this height was reached, the bears have been more active as the price of Evergrande closed at $1.59 in 2021, which is lower than the IPO price at $4.01. Since the price showed that the price has been overbought in 2017, the price since then has fallen from the top. The chart has shown that in the last 5 months of 2021, the price has been oversold with 5 dojis.

Since the second-largest real estate in China has been having issues with debt in 2021, there were huge selloffs. RSI is currently showing that the price is oversold and the candlesticks are in the lower region of the Bollinger bands. If Evergrande gets a bailout, the price could reach $20 in the next few months.

December 17, 2021December 17, 2021

Our Investment in Truesoil

It’s been a busy year for us as at FM Capital Group. From an investment perspective, it has been our busiest year to date for our small team of investors. For the remainder of the year, I will highlight each of our 2021 investments and talk up the wonderful, important, and impactful work each of these companies are doing in Africa.

In April of this year, I traveled to Uganda to finally visit my portfolio company, Raintree Farms. Raintree is my first angel investment on the continent and actually my first proper vc investment. While I had met founder TMS Ruge plenty of times before, it would be my first time seeing the Farm. They say great founders know other great founders. Teddy is no exception. He is THE most connected founder in Uganda. He knows all the players, particularly the younger founders with startups solving big challenges in Uganda that have the potential to scale out to wider Africa. So it was Teddy that introduced me to Zachary Mugabi Haavaldsen, co-founder of Truesoil.

The establishment and security of land rights is critically important to the growth of an economy and wealth of its citizens. 70% of the world’s population lacks proof of land rights. This places individuals and families at risk of losing their homes and land property. More importantly, this discourages people from acquiring land for agriculture, construction, or investment. In Africa, the lack of and false documentation is a major challenge. False documentation creates overlapping rights which leads to legal conflicts between neighbors, tenants, landowners, and government. A complete lack of documentation makes it very difficult for heirs to inherit property or landlords to collect their rental income. Governments need modern systems to not only better track property rights but to also collect their own tax revenue as well.

Enter Truesoil. Truesoil is a digital solution to help both tenants and property owners establish their land rights in African markets. The company is headquartered in Kampala, Uganda. We believe that Truesoil is well positioned to transform property management and real estate in Africa. And that’s why we invested in them. Gradually, Truesoil is changing the land ownership scene in Africa as it makes negotiations simple and personal, helps tenants and landowners reach balanced agreements by connecting them, and facilitates transactions in a transparent and traceable manner. Keep up the great work Truesoil team!

Follow Truesoil on Twitter, Facebook, and Instagram!

Landlords ranked payment problems as their top concern, even above fraud. With Truesoil, you will be able to decrease late rent payments with payment options and reminders, See rent payment statuses in real-time and Streamline Property management operations.#propertymanagement pic.twitter.com/jLnOAnPrJo
— Truesoil (@Truesoil_uganda) September 29, 2021

December 15, 2021December 16, 2021

What Is The Fate Of Pepsico Investors?

The share price of one of America’s multinational food, snack, and beverage corporation, PEPSICO, hit a new all-time high at $171.47 on the 13th of December, 2021. Just like many other stocks, PepsiCo had a dip during the global lockdown in 2020. Price fell from the February 2020 all-time high at $147.24 to $101.54, which was a 31% loss in value. As countries began to ease the lockdown, the price of $PEP recovered over 90% of the losses during the lockdown. Despite the lockdown, in 2020, Pepsico made $70.37 billion in revenue surpassing the 2019 revenue of $67.16 billion. After the lockdown was eased, for the most part of 2020, the price of $PEP was in a range until price broke out to the upside in December 2020.

Price has maintained the bullish trendline since the ease of lockdown in 2020 . There are a few times that price had a correction before the rally continued. The 4hr chart has a pattern of higher highs and higher lows since the lockdown. A reversal might occur after a new all-time has been reached above $171.47. The holidays are coming and investors might decide to take out some cash from investments. This might negatively affect the price of $PEP. Price is currently at $169.31. A correction might devalue the share price to $152, which is the next support level.

December 14, 2021December 15, 2021

Amazon’s Price in a Range

Amazon is an American multinational conglomerate that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. The stock has done well for investors in the last decade, as an investment in $AMZN has generated over 19X. The share price of Amazon has maintained a resistance level at $2044 since September 2018, but the price broke out the resistance level to the upside in February 2020 to a new all-time high at $2913.18. After the break-out, there was a price correction before a major rally began to a new all-time high at $3770.49 and the support level is maintained at $2883.53.

Since a support level was formed at $2883.53, the price of $AMZN has failed to break the support level to the downside as the price has been ranging between the support level and the all-time high at $3770.49 since mid-2020. Unfortunately, an Amazon warehouse was hit by a tornado, this week killing six, and an activist group targeting Exxon. In July and November of this year, $AMZN has formed a double top, could this be an indication of a correction. Using Amazon to shop could be a major option for shoppers if covid cases increase with the new variant ‘Omicron’, as the lockdown may be re-imposed.

RSI has shown that price has been overbought since the ease of lockdown in 2020. Despite the rally around to the all-time high at $3770.49, the price has crossed to the lower region of the Bollinger bands this month. For long-term investors, Amazon could be a good deal, just as it has done in the last decade.

December 10, 2021December 14, 2021

Apple Investors Continue To Make Profit

This week is the best week so far for Apple since the beginning of the year. The share price appreciated on Wednesday by over 2.8%. It has been up 8% this week and about 6% this month. The supply chain shortages are getting worse though as Apple completely stops iPhone production in China for the first time in a decade.

Just like many other stocks, Apple’s share price dipped during the lockdown from then $81.53 to $53.65, which was a 34% loss in value at that time. As the lockdown was eased last year, the price has continued to rally from the lowest price level at $53.65 to a new all-time high this month at $176.65. That is over 2X gain since the ease of lockdown. The last year has been the best year for the Apple investors as more gains are made. The current market cap for Apple is $2.86 trillion. Apple could be the first company to reach the $3trillion market cap.

Now that Apple has completely stopped the production of Iphones in China, this might lead to the share price taking a break from the rally. Apple has been sued over Apple watch defect that poses hazards to customers. RSI has shown that the price has been overbought twice between November and December. Price is currently in the upper region of the Bollinger bands, a correction might occur if the Omicron virus poses a major threat to the global populace.

December 7, 2021December 12, 2021

Price Of Dow Jones Heads To A New All-Time High

During the sharp drop in the price of Dow Jones in 2020, which was majorly caused by the global lockdown, the price fell from $29,473 to $18,000. Since the ease of lockdown, the price has continued to rally as most of the months in 2021 had a new all-time high. There was a breakout of the previous all-time high at $29,473 towards the latter part of the year 2020. Since this breakout, the bulls have been relentless. The opening price of Dow Jones at the beginning of the year was $30,489. Price has been able to reach a new all-time high at $36,598. There was a major dip in November 2021 when the price from the all-time high at $36,598 to $34,000. Then a rally occurred which is a result of a gap up. The 4hr chart clearly shows the price is currently in the upper region of the Bollinger bands.

There are likely possibilities of price reaching a new all-time high above $36,598, which could lead to a breakout of the resistance level. Almost all losses last month have been recovered with December’s price reversal. The gap down from $35,800 to $34,800 in November 2021 has been covered up with this bullish run this month. RSI was able to show that the price had been overbought in the previous all-time high in November 2021. As the price dips in November before consolidating, RSI also shows that price has been oversold, which was an indication of a price reversal. On the daily chart, the candlesticks crossed to the lower region of the bands in November as the price fell. Yesterday’s candlestick closed in the upper region of the Bollinger bands. This move could push the price to the next psychological level at $37,000.