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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]

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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.

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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.

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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]

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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.

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COULD FACEBOOK SHARES BE SINKING?

Facebook shares sank in the month following the Cambridge Analytica revelations, and they remain down more than 2 percent in 2018 against the S&P 500’s 7 percent climb.

The stock was set to add to the year’s losses Wednesday morning, down 0.3 percent in pre-market trading. In the last one year, facebook shares has grown by 3.52%, In the last 3 months, it went down at an average of -6.61%; In the last 1 month, it went down by -1.49%; In the last 5 days, it went down, -0.61%. Facebook shares has been ranging ever since its share price dropped towards the end of the market day on the 25th of July, 2018. Its fall might continue since there are unresolved issues around the brand, Facebook.

The senkou span(purple colour) of the Ichimoku kinko Hyo shows the future of the market to be a downtrend or on a sell region. The RSI is above 70 which shows it is overbought for a long time and now in the sell region. It has not been oversold on the daily time frame. There are tendencies there will be more selling of the facebook shares.

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MARKET OUTLOOK ON AUD/USD

The Australian dollar had a resistance level at 0.7370. Ever since it touched this point, it has been on a downtrend. Could it be developing a new support level at 0.7288. On Friday, there will be high impact news to be released on the USD but for now this pair is in a range form. The Aussie has been losing to the dollar since Tuesday and might continue if the next news comes out in favour of the US dollar.

The AUD/USD with the RSI has been on the sell region for sometime but yet to be oversold  i.e. yet to get below 30%. The ichimoku kinko hyo (senkon span) has been in the sell region, which might still retain its stand.

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THE JOURNEY OF CRYPTOS CONTINUE

Having been oversold for a while, Bitcoin continues moving in a direction majorly for long term traders and hope will be restored soon for some profit. Bitcoin went down last week to $6000 from a previous resistance level of $8,300. Since then, it has held on to a strong support level and might increase its value only for a short while. Its next resistance might be $6,800. However, this is dependent on the number of buyers to go long, if not, it continues shorting.

For Ripple, the next major resistance might be 0.4140 but since its ranging now, so it seems indecisive. The major reason for a buy is because it has been oversold for the past weeks just like bitcoin.


For Ethereum, it has been oversold at $278 to 1 Ethereum for 2 weeks. The next major resistance might be $395. This could also be a swing for a continuous downtrend.

Indications showing for the next few weeks: The more buyers, the higher the price of crypto currencies and new resistance levels will develop. For now, it is ranging and it’s not too good to enter trades in a ranging market.

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MARKET OUTLOOK ON EUR/JPY

Throughout july, the Japenese yen gained so much against the Euro in which a new support level was at 125.00. Assuming buyers resume activities, it could get a new resistance level at 128.00. There is a breakout already, which might also be a fake breakout.

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ON THE AIR with F.A.C.E.

It’s always a treat joining Dale Pinkert live in the Forex Analytix Community Experience. This is the premier trading room on the internets right now. So it is honor to speak to this audience. To hear, today, how much value I bring to them is humbling. It makes my day to help people in their journey to successfully navigating these markets:

Take a listen below to our masterclass lesson in the GBP in real time after 4 straight months of decline against the USD and new lows versus the JPY. What’s in store for the rest of 2018?

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