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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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General Electric Share Price Drops

General Electric recently had a problem with the electrical power plant in Texas. Similar problems might develop with its other units. Four power turbines in the U.S. were shut down because of oxidation. Though, the turbine powers many homes; hopefully this problem will not persist.

During the next earnings call, $GE should guide against re-occurring of power problem affecting many of its plants. If the problem persists, $GE might pay and sacrifice alot before recovering. There is competition already in the power market, with the likes of Mitsubishi and Siemens. Despite two oversold point on RSI, momentum for a fall in share price increases. As a result of the released news, $GE share price fell and rallies in the lower section of the band. Buyers might not be trading soon.

Source: General Electric Confirms Blade Problem At New Texas Power Plant-(Moneycontrol.com)

GE Says Four Of Its Flagship Power Turbines Are Shut Down In The US. –(NASDAQ)

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Goldman Sachs Might Be Attractive To The Bulls

Towards the end of August 2018, Goldman Sachs has been losing points. The CEO, Lloyd Blankfein, has submitted his letter of resignation which probably brought down the share price of $GS in August. The confidence of shareholders was shaken by the resignation news. Nevertheless, a new CEO was appointed, with the name David Solomon. Now $GS has decided to buy Turkish and Argentinian government debt. That is indeed a milestone. But it is a high bet on the worst-performing emerging markets.

Investment in emerging markets should bring about high yields. The RSI has a directional change to the buy region, showing a trace for the bull gangs to be active. There is an obvious breakout of the two trendlines upward and the RSI is neither oversold nor overbought. The momentum on the breakout might not be much, but at least it might be a good deal for buyers. Price is already at the upper region of the bands. Buyers should be ready only if it is just a trick by the sellers.

Source: Goldman Fund Buys Turkey and Argentina Bonds Says Rout Overdone (BLOOMBERG)

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FB Looks Vulnerable

This is the first time that $FB has ever revisited lows on the monthly chart. Here, on the weekly, this is nothing new. The contrasting price action in these timeframes suggests that if September ends the month, and quarter, at new lows, $FB becomes very vulnerable heading into election season and the last quarter of the year.

Ever since $FB broke above $55 after a brief pullback at the then-highs, there has not been a dip that revisited after the recovery. The fact that price is not only below $200 after making the new all-time high at $218.62 back on July 25th, it is back at the previous lows. Price stands less than twenty dollars shy of those Cambridge Analytica lows of 149.02, as of this writing.

FB WEEKLY CHART

Price is also sitting on the 38.2% Fibonacci retracement. It could hold here. Or break lower. The real question becomes what do you below $149 or above $200? My answer to you: what is your timeframe?

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