fbpx

Posts

Posted on

Unilever Might Lose Major Shareholders

Unilever has decided to relocate its headquarters to the Netherlands. $UL is a company co-owned by Magaine Unie, a Dutch Company, and Lever Brothers, a British Company. One of the reasons for relocating is to simplify its corporate structure. Amid this deliberation, it is required that 75% of the company’s shareholders agree to this. Unilever is presently listed under FTSE 100 in London with a £124billion in market cap. Any relocation to the Netherlands, then $UL will cease to be listed under the FSTE 100. One of the major shareholders said it is not in support of the relocation; which will encourage long term investors to sell off their shares.

Meanwhile, price action has crossed over to the lower region of the bands. The Ichimoku shows the future movement of price trend to be downward. Price movement using the RSI also shows a continuous downtrend. I hope relocating the headquarter to the Netherlands will not lead to bigger problem for $UL as a company. Due to these indicators, sellers from the FTSE 100 might continue to sell off their $UL shares.

Source: Unilever Relocation Plan Rejected (BBC)

Posted on

TESLA ON A SWING

Following the Smoking of Cannabis on a live show by Tesla CEO, Elon Musk, the share price of $TSLA dropped significantly. The Vice President of Worldwide Finance and Operation for Tesla , Justin McAnear, submitted a resignation letter recently after 3 years with the company. A bigger role came knocking at his door. Could he be leaving because of the instability of the $TSLA share price or because of the new job or he cannot fortell the actions of Elon Musk? About 30 executives have left the company since June. This is alarming for a publicly traded company like $TSLA. Investors might want to withdraw due to instability in executive leadership. Musk made a promise recently to increase production of the Model 3 sedan which might put the company on a profitable track. It is the most demanded amongst Tesla’s model of cars.

The trendlines A and B had an upward breakout already pushing to a new resistance level. Could $TSLA share be on the rise again? Hopefully an influential executive will not resign anytime soon and Elon Musk will not take another crazy action, which might in the long run decline the price of $TSLA. A doji already formed on the lower band for a change of trend. RSI on the daily chart shows an oversold market. As we look forward to the bulls taking charge of $TSLA, this might be in a range for awhile.

Sources: Elon Musk Cannabis Weed Smoking (INDEPENDENT.CO.UK)

Teslas Global Finance Head Leaving The Company (THE VERGE)

Posted on

Apple Might Be Losing Its Bull Power

Apple shares reached a new high last month after its share price dropped heavily in 2014. $AAPL has unarguably maintained a bullish trend over the years. In August, $AAPL reached $1 trillion in market value, the first company in the U.S. to achieve that. President Trump recently started a trade war with China, which doesn’t seem to end soon. The trade wars are caused by his new trade tariffs.

For investors who have enjoyed the sweet ride of $AAPL in the past few years, they might book some profits. There will be lesser patronage when tariffs on Apple products from China is increased. Apple shares was down 1.3% on Monday after the news reports. RSI shows $AAPL has been overbought and might drop its value a bit depending on the conclusion on the trade wars. There is also a breakout downward from the two trendlines A and B. As at the time of this writing, the share price of $AAPL was at 219.43. It might continue the downward movement even below 210. The RSI has shown that the price of $AAPL has been overbought for days but a correction has started due to market sentiment around trade wars. Though the Ichimoku shows an upward trend, price might continue the bearish movement because it broke out of the trendlines.

Source: Apple Shares Fall (CNBC.com)

Posted on

Pepsi Partners with NFL, A Challenge for the Bears

After several consolidations, it might be looking like a breakout upward for PEPSICO. For the last trading day last week, it was bullish and price closed above the line B. This could as a result of the program introduced by $PEP. It is called 360-degree program that brings football to their cities and into their homes like never before. $PEP partnership with the NFL kick starts this season( 2018-2019). While I drink more bottles of Pepsi, I hope to benefit from $PEP as the football season starts.

Though a cross from the middle line of bollinger band crossed over price but it could be a fake downtrend continuity. A trend between A and B has shown the price movement in the last few weeks. After the breakout, price might continue the bullish movement which started last week hoping to reach the new resistance level. $PEP might gain over 150pips in the coming days.

Source: Pepsi Unveils Football Program (NASDAQ)

Posted on

Crude Oil Price Finds A New Resistance

Innovations coming up daily have brought about decline in demand for crude oil across the world generally. We are now entering the most active months of the hurricane season in the Atlantic Ocean. Even though weather scientists are forecasting that the 2018 hurricane season will not be nearly as active as 2017 and 2016, the Hurricane Gordon is forecasted to be heavy in October.

It has come to my understanding that not all hurricanes enter the Gulf of Mexico, but when they do, many oil companies will take precautions and shut down their offshore production and evacuate personnel before the hurricane hits. A trace of Hurricane Gordon, which came through the Gulf of Mexico on Tuesday and Wednesday, forced producers to shut down 9.23% of oil production in the Gulf and 9.06% of natural gas production from the northern Gulf of Mexico.

Over 45% of the total U.S. refining capacity is located in the Gulf. Hurricanes and other storms can cause flooding, sometimes severe, that has caused refineries to shut down. In 2017, the largest refinery in the United States, Saudi Aramco-owned Motiva, shut down for 2 weeks after Hurricane Harvey causing severe flooding in Port Arthur, Texas. Other refineries only closed for a few days during and after Hurricane Harvey.

Meanwhile, there is already a breakout downward both with the RSI and Ichimoku. It is presently around $69 to a barrel and might find a new support at $65. For the most part of August, 2018, the price of crude oil was on the rise. Sellers might become active due to these indicators.

Sources: Hurricane storm threat (Investing.com)

Crude Oil Price Drops (CNBC.com)

Posted on

A Few Thoughts On Nike

Nike just stunned the world with its latest campaign to celebrate its 30-year anniversary in business:

Nike Colin Kapernick campaign

Because of the controversy that surrounds Colin Kaepernick’s stand for the social justice of Black people in America and his blackballing by the NFL, many have forgotten (or overlooked) Nike’s past bold moves. Just last week, after the French Federation of Tennis instituted a dress code against Serena Williams, Nike dropped this ad campaign:

Nike Serena Williams campaign

And anyone remember this bold move with Michael Jordan in the 1980s:

So what has all this boldness done for the stock? Well, $NKE hit all-time highs just  last week at $83.68. The news about the Kaepernick campaign came on a Sunday before U.S. equity markets were open. So, of course, traders on social media immediately became interested in how $NKE would perform on Monday when the stock market opened. And it did not disappoint.

NIKE DAILY CHART

$NKE opened with a huge gap down when markets opened Monday as Wall Street proved to be racist AF.  While price dropped towards the zone given by the Fibonacci retracement levels off the last support level at $75, I’d love to see price move even lower to fill that gap after its latest earnings report.

So if you’re shorting $NKE just because of its latest campaign, you just might be….nevermind. I’ll just say, find a better reason.

There are ebbs and flows to every market. Learn how to trade what you see. Or invest with a pro. [sponsored]

Posted on

THE EURO, READY FOR A COMEBACK

The $EURCHF has been on a downtrend since mid-July. The downtrend came to an end at the early part of August with over 500 pips movement. After the bearish movement, it consolidated, making the EUR gain against the CHF with over 200 pips. Later, the downtrend continued. A new support level was formed towards the end of August resulting to a double buttom on the 4hr chart. The RSI shows it is already oversold at two different instances in the last one month. $EURCHF might go bullish with about 200pips movement.

On the daily chart, using the RSI, a double bottom has been formed which complements other indications. Though the future of Ichimoku shows a continuous downtrend but price has rallied around the oversold section since the beginning of the week. A bullish trend in favour of the Euro might resume.

Posted on

GBP Yearning For A Rise

The $GBPUSD obviously has been on a downtrend since April, 2018. A change of trend might occur soon due to some major decisions taken to favour the GBP. Most notably, small-business lending platform “Funding Circle” has officially announced its plan to raise GBP 300 million as part of its GBP 1.65 billion IPO on the London Stock Exchange.

As reported in January, Funding Circle was seeking advisors for the IPO. At that time, existing investors said the company could hit a GBP 2 billion valuation once it goes public. $GBPUSD using the RSI shows it has been oversold and might go upward soon. Price touched the resistance level last week and a breakout might occur which will lead to a bullish movement in favour of the GBP.

Posted on

The SchizoGBP

Summer trading comes to an end this week as traders around the world head back to the trading desks en masse. But the Great British pound (GBP) has had quite an exciting summer. In what is usually a tame season for GBP price action, markets saw the $GBPUSD tumble just over 700 pips this summer. The main culprit has been Brexit or the lack thereof depending on the day and headline.  Brexit has caused the GBP, to not only move but to RIP in any direction and at any given moment.

“Brexit won’t happen” and GBP rips higher hundreds of pips.

“Brexit will be hard and concrete” and GBP crashes hundreds of pips.

This has been the case for the GBP all summer long. Despite the clear trend to the downside, markets have been looking for any reason to rally in the absence of a real upside correction.

A hawkish Bank of England (BoE), despite the political confusion surrounding Brexit, has also been a source of volatility in the $GBPUSD. While witnessing more hawks voting for an interest rate hike in June and July, it was the August meeting that finally saw the BoE deliver its second interest rate hike in over a decade. And yet this central bank action only extended the trend further to the downside.

GBPUSD DAILY CHART

Now that the $GBPUSD has found a bottom after falling all summer, it is long overdue for a correction. Despite the 400-pip bounce off the bottom so far, the $GBPUSD has still hardly corrected its downside trend move. While 1.3050 could very well hold as resistance, I am still of the mind that there is more upside correction due. I believe that a true correction happens into the Fibonacci retracement levels. Therefore, as the markets open this new and first trading week of September, the $GBPUSD finds itself having the potential to move at least 500 pips higher.

As always, trade what you see, not what I think!

Sources: Stuck Brexit negotiations point to a GBP/USD retest of 1.1946 (FXStreet)
GBP/USD: Bearish Technicals and No-Deal Brexit Threats Weigh on the Pair (Trade Captain)
British Pound Set To Weaken Further, But Some Hope On The Horizon (Seeking Alpha)
US Dollar Jumps to July High, GBP/USD Folds on Inflation Data (Nasdaq)
GBP/USD – British Pound Slips Over White Paper Blues (Seeking Alpha)
GBP in the Spotlight as Brexit Tensions Flare up (DailyFX)

There are ebbs and flows to every market. Learn how to trade what you see. Or invest with a pro. [sponsored]

Posted on

ONE EYE ON THE DOLLAR, THE OTHER ON THE FRANC

The US dollar has been losing to the Swiss Franc since the 20th of August, 2018. The Swissie might relinquish its strength to the greenback. On the 4hr chart using the RSI, there has been two obvious oversold spots. The last time price passed through the 2nd major support level was in the latter part of April, 2018. Price tried to maintain the support level 1 but continued the downward trend till a new support level was reached.

These indications might lead to a change of trend; though the ichimoku shows a continuous downward trend. Also, it shows on the 4hr chart that the candlesticks have been ranging for almost a day. An uptrend might resume soon in favour of the dollar. Investors might choose to go long on the USD majorly because its long due, ever since the first support level was breached. Price has also touched the edge of the Bollinger band and now on range, ready for a breakout on the opposite direction.

Proudly powered by WordPress