ASX
Going to be Plenty of buying opportunities around.If you think most charts wont look like this sometime in the next 12 months I don't know what to tell you. Most have just started breaking down from trendlines. maybe the BABA chart has been telling us something for a while.
Stay safe, risk mitigation and wait for the set ups to play out. Don't need to pick the bottoms.
US Indexes had a late burst higher to end in the greenMorning Jumpstart Macro View and US market recap 1-02-22
The US had a late session burst higher that dragged the major Indexes into green territory ahead of key US employment data Friday. The USD continues to grind lower while Gold was range bound. Copper had a strong session while Oil continues to hold recent gains setting for another push higher.
For a deeper look at the price action, key levels and what I see playing out...watch the video and feel free to leave any comments.
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Buy The Travel Sector The Omnicron variant has provided an investment opportunity in the travel sector.
Prior to the emergence of Omnicron, Travel destinations were beginning to plan pathways for reopening.
This gave confidence to the market that the future values of travel related stocks would be higher and as a result travel stocks recovered from pandemic market shock lows.
Since the start of the Omnicron market scare travel stocks have decreased in value significantly.
Currently, countries such as Vietnam, the Philippines and Thailand are beginning the pathways back to pre covid travel levels by slowly easing entry restrictions.
Preliminary data shows Omnicron may be less severe and it will become the dominant variant. This gives us confidence that covid is mutating in a positive direction and the world will eventually open up as a result of the new variants low mortality rate.
We believe the travel sector will recover at some point leading us to conclude that current market valuations are selling at a discount.
Our plan is to front run the end of harsh pandemic travel restrictions and take a position in the travel sector.
The time horizon for this trade is between 8 weeks and 6 months.
We are expecting to close our position at a 10 to 30 percent gain.
Play Number One
Carnival Cruises, stock code CUK currently valued at 18 USD.
At the high of pandemic recovery Optimism, CUK was valued at 27 dollars. That is a 66 percent increase in your investment back to the last recovery top.
Note: ignore carnival stock CCL because it is selling at a premium which could narrow if the U S economy weakens further.
Play Number Two
Flight Centre FLT. You can get exposure to this company on the Australian Stock Exchange. Flight Centre recovered to a price of 25 Australian Dollars and now sits at 16 dollars. When optimism returns and creates momentum, FLT may experience a 66% gain back to the highest pandemic recovery point.
We will post updates in the comment section as new information comes to light.
ASX:DMP - Stage 4 uptrend started- dominosStage 4 of growth has just started....?
History tells us that....
Domino's Pizza Enterprises Limited (DMP) is engaged in the operation of retail food outlets and franchise service. The Company holds the exclusive master franchise rights for the Domino's brand and network in Australia, New Zealand, France, Belgium, the Netherlands, Japan and the Principality of Monaco. The Domino's brand is owned by Domino's Pizza, Inc. which operates within the Quick Service Restaurant (QSR) pizza segment of the fast food market in Australia and New Zealand.
BLX.ASX_Retracement Trade_LongENTRY: 3.02
SL: 2.47
TP: 3.39
- ADX>20
- RSI>50,RSI<70
- Daily RS +ve
- Daily FFI -ve. But turning positive.
- Daily MACD +ve
- Weekly RS +ve
- Weekly FFI +ve
- Weekly MACD +ve
- Retracement to 50% fib. level and rebounded today with high volume green candle.
- Possible buyers coming back in today.
- Above HVN currently as well.
- Buyers-in-control actions on 11 Nov 2021 and 10 Dec 2021
YAL.ASX_Retracement Trade_LongENTRY: 2.99
SL: 2.75
TP1: 3.58
TP2: 4.23
- ADX>20
- RSI>50,RSI<70
- Daily RS +ve
- Daily FFI +ve
- Daily MACD +ve
- Weekly RS +ve
- Weekly FFI -ve
- Weekly MACD +ve
- Breakout of range on 13 Jan 2022 with good volume.
- Retracement thereafter, and today shows volume dry up.
- Looking for it to break 3.07 for further uptrend movement.
Bubble popping?I am not saying this will happen, personally sitting in 80% cash besides a few stocks that I still see upside in the next couple months, but could you imagine the pain if this played out. bearish divergence on the monthly Fed turned hawkish. Before you say it couldn't, the 2008 financial crash was 53%. 2000 dot com bubble 60%. Will tech pop this time? or will govts find another way to keep the market going?
PPS.ASX_Retracement Trade_LongENTRY: 1.450
SL: 1.255
TP: 1.610
- ADX>20
- RSI>50,RSI<70
- Daily RS +ve
- Daily FFI +ve
- Daily MACD -ve
- Weekly RS +ve
- Weekly FFI +ve
- Weekly MACD +ve
- Retracement to cover gap and until 50% fib. level since 2 Nov 2021.
- Possible buyers coming back in on 29 Nov 2021.
- Above HVN currently as well.
Could be a slippery slide lower on the ASXThe ASX200 is under pressure as price falls into the weekend on stock market meltdown fears. US rate rises and inflation, along with other concerns, are weighing on bullish sentiment and testing the patients of buyers. Is this the calm before the inevitable storm?
To me, the 7175 level is the line in the sand after the recent RTF (Double Top) at 7625, and buyers will need to hold the line if we are to see higher prices. Price has extended into the level so may see a bounce on some bargain hunting in coming sessions although this will largely depend on how the US performs tonight.
US bonds are pointing to four rate rises this year which is more than expected and pressuring markets. There are some saying that the US Fed has made a mess of easing and have left it too late to contain inflation so will be chasing with faster tightening. If this is the case, I do not see traders wanting to add risk to portfolios or Funds willing to support price...so now is the time I am happy to be cautious hence the recent short on the ASX200 CFD.
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Silver/ASX ratio breakdownIt's finally looking like Silver is going to outpace the ASX. A breakdown from the clear descending wedge after a clear double top on the Weekly time frame, I am feeling very bullish. Inflation is here to stay, and fiat currencies are in trouble.
Eyes are getting drawn to the shiny stuff.
BRN/AUD - A prosperous 2020From a technical perspective, Brainchip Holdings (ASX:BRN) ticks all my boxes. I believe we're at an ideal buying location for both traders and investors looking to add to their position.
My reasoning:
Location: Bottom of range
Structure: Triple bottom, "W" price structure
Divergence: Huge OBV div, confirmed div in histogram, Willy div
VPVR: Currently sitting at the POC. Large hole in volume above price, approx 125% potential if price clears 0.076c
Weekly gap left @ 0.201c (marked by green line)
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$RMSRMS breakout with target market on the change
RMS broke out on decent volume.
Looking for a move above the "level" and then to see if it uses that same level as support. this will be confirmation.
The next level is the target that is marked on the chart and a potential profit taking zone for short term traders.
FMG - Is it headed to $30 ?Fmg - looks like the uptrend is about to resume.
Key techinical - Inverse head and shoulders formation. FMG chart suggests it could be headed to $30. Resistance at $26. 20% upside.
Key fundamental - Iron ore prices at record highs to continue, resulting in record EPS ( big dividends ).