New Year Hangover for the FTSE
After a strong festive period, the FTSE’s first week of trading in 2024 resembled something of a damp firework…
Having rallied from the support zone in late October all the way to the resistance zone in mid-December (see chart below), the FTSE has stalled and in recent sessions started to retreat. We’ve seen the market reject...
Barclays Downgrade Takes Chunk Out of Apple
Apple's share price has started the New Year like a damp firework after Barclays downgraded the tech giant to "underweight". This downgrade was primarily triggered by disappointing iPhone 15 sales in China and the expected slowdown across various Apple product lines.
Anticipation looms around the upcoming iPhone 16...
In this 5-Part series, we'll unlock the potential of various indicators and their applications, starting with the dynamic and versatile VWAP (Volume Weighted Average Price) .
We’ll give you a simple 3-step method that uses VWAP to time your entry into emerging trends and run through plenty of worked examples. But before we get into the juicy bit, let’s start...
EUR/GBP has started to the New Year with negative momentum as prices form a bearish reversal pattern on lower timeframes…
Recent price action on EUR/GBP’s hourly candle chart indicates that this key currency cross may be starting to rollover. A clear head and shoulders reversal pattern has formed with prices breaking below the ‘neckline’ of the pattern during...
As we enter 2024, here are three UK stocks that have shown promising signs recently. Past performance is not a reliable indicator of future results
Content:
1. Centamin
Ticker: CEY
Market Cap: £1.18bn
PE Ratio (forward): 10.9
Gold is being driven higher by a weakening US dollar and this has created a tailwind for gold mining stocks.
Egyptian gold...
EUR/USD Rides High into 2024 as Dovish Fed Fuels Dollar Weakness
EUR/USD is finishing 2023 with bullish momentum as an increasingly dovish Federal Reserve has fuelled dollar weakness.
In December, the Fed kept rates on hold at 5.25-5.5% for the third consecutive meeting. Their acknowledgment of a decelerating economy and alleviating inflationary pressures has...
Welcome back to the second part of our Harmonics series. In this segment, we'll delve deeper into the world of harmonic trading by exploring the power of Multi-Timeframe Analysis.
Understanding how different timeframes align and interact can significantly enhance the precision of harmonic trading strategies.
Understanding Multi-Timeframe Analysis
We...
Oil prices have been drifting higher for the past week due to the dovish FOMC meeting and a demand forecast upgrade from the EIA. But on Thursday the commodity pulled back from the monthly highs as the Angolan oil minister announced on local TV that the country was leaving the Organisation of Petroleum Exporting Countries (OPEC). The decision was made as they...
Biggest Drop in Three Months: S&P 500 and Nasdaq Tumbles Amid Late Sell-Off
The S&P 500 and Nasdaq experienced significant declines yesterday, the largest in three months, as a late sell-off halted Wall Street's push for a record high.
The drop was driven by Big Tech stocks, which hold substantial sway over market direction. About 96% of S&P 500 companies...
The FTSE 100 surged in early trading on Wednesday as the latest inflation figures showed consumer prices had risen less than expected in the last 12 months. Headline CPI came in at 3.9% year-over-year in November, the lowest level in two years. Analysts had been expecting the figure to drop to 4.3% from 4.6%. Core inflation also dropped more than expected to 5.1%...
Welcome to this two-part series on Harmonics! In this first instalment, we'll delve into the foundational concept of the Measured Move using the ABCD pattern. Understanding this essential structure lays the groundwork for precise trading decisions based on harmonic principles.
Introducing the ABCD Pattern
Price action in any market and on all timeframes tends...
BoJ's Persistent Ultra-Loose Policy
As anticipated, the Bank of Japan upheld its loose monetary policy, waiting for signs of potential wage increases to stabilise inflation around 2%. This decision dashed hopes for an immediate end of negative interest rates, maintaining the dovish policy stance.
Governor Kazuo Ueda acknowledged positive trends in prices and...
Building upon the foundational understanding of Fibonacci retracements and extensions explored in Part 1 (Fibonacci: The Fundamentals), this sequel ventures into the world of advanced Fibonacci patterns.
We introduce the two best known advanced Fibonacci patterns; the Gartley and Cypher. We break the patterns down into their essential components, teach you how...
Tesla: Coiled Tightly as Breakout Looms
Tesla's stock is resembling a tightly wound Tesla coil, reflecting the market's struggle to resolve its current equilibrium.
In recent months, Tesla’s share price has been contained beneath a descending trendline which has mapped the lower swing highs from the July peak (see daily candle chart below).
However, despite...
Monitoring EUR/USD’s Retracement
For traders attuned to Fibonacci levels, EUR/USD has emerged as an intriguing market to watch.
The rally observed between October and November halted at the 61.8% retracement level from the summer sell-off. In recent weeks, EUR/USD has retraced part of that October-November surge, hitting the pivotal 50% mark after a strong...
U.S. Non-Farm Payrolls Preview
With the imminent release of the U.S. non-farm payrolls data scheduled for today at 1:30 pm (UK time), let's assess the market's expectations and positioning for this pivotal economic report.
Expectations:
Wednesday's ADP Non-Farm Unemployment Change data fell short of projections at 103k versus the anticipated 130k. This sets...
Applying Nature's Harmony to Financial Markets
From flower petals to far away galaxies, the Fibonacci pattern is found across the natural world.
Fibonacci patterns are derived from the Fibonacci number sequence where each number is the sum of the two preceding ones: 0, 1, 1, 2, 3, 5, 8, 13, and so forth.
Some traders believe the Fibonacci sequence and its...
The spot gold market surged overnight, targeting crucial resistance levels, but signs of rejection have surfaced as profit-taking and short selling emerge.
Weekly Candle Chart Analysis
A broader view on the weekly candle chart reveals a key area of resistance: the spike highs in August 2020, March 2022, and May 2023 converge at similar price points, forming...
