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Multi-Month Bearish cycle ahead / #1,800.80 TargetGold's general commentary: As discussed, if Gold does not invalidate #2,452.80 - #2,500.80 psychological benchmarks in extension (Buying every Low's / less likely), I am expecting Gold to finish the Monthly fractal below #2,300.80 benchmark. Needless to mention, that would be Bearish for Gold’s Medium to Long-term (aligns with my Bearish expectations). On an Intra-day basis the only Trading opportunity exists only within the Hourly 4 chart’s Overbought levels, as I don’t see why I should allow additional risk of Selling Gold throughout Low Volume sessions such as current (many similarities with December #24 - December #25 fractal). I am expecting Gold to re-test #2,352.80 benchmark within #2-sessions if there aren't new DX Selling surprises. Fundamental analysis: Cup and a Handle formation was delivered on Hourly 1 chart (visible even more on smaller charts), spike to the upside is delivered as I expect cool-down on Gold (even though CPI delivered unexpected forecast / numbers). Only reason what is keeping overall Bullish trend sustainable is DX taking strong hits on Daily basis. As High Interest rates are having very negative impact on world’s economy and individual population, DX is on a decline. Technical analysis: Last #3 Weekly chart’s (#1W) MACD Selling signals brought approximately (# -15.80%) to (# -17.27%) declines in #140 to #160 sessions. MACD is about to deliver Long-term Selling signal and if one calculates (# -16.00%) decline from current Price-action, #2,000.80 psychological benchmark remains first Long-term Target (followed with #1,800.80 Selling extension of recent High's). Also if Monthly (#1M) chart is correct, every major / mega Bullish rally was aggressively corrected. If I take period from #2.000 Year to ATH’s in #2.011, Gold delivered (# +619.80%) rise, then delivered aggressive multi-Year decline until #2,015 Year. Since #2.015 Year, Gold was gradually soaring until #2.020 Year stagnation which was extended (made a Bullish breakout) on #2.023 Year towards recent record High’s (delivering (# +127.80%) rise. If this is eventual Top, I do expect Gold to continue it’s cycle of multi-Year struggling after delivering / fresh ATH’s at least #500-points ahead. Advice to Traders since I am getting many inquiries lately: There is no secret. Trading is (especially Gold) taking certain Risks at certain times. If you're not aligning your strategy to the context, you will not get paid and will consequently lose money. Financial markets are ruled by Stochastic processes and most of what happens is beyond our control or understanding even, however can in turn represent serious source of income, especially on bigger levels (account sizes). #50% of Trading is Trading knowledge (day to day experience and fieldwork, Risk control, capital management) and second #50% is handling emotions and one’s psychology while understanding the broader context of the market and how to be appropriately positioned. Most importantly, Trading is a process, not an over-night success, so strong patience is required.
OANDA:XAUUSDShort
by goldenBear88
98
How to trade tax-free: spread bettingCFD trading has a close cousin you may not know about … spread betting. Just like CFD trading, spread betting allows you to speculate on the future direction of a market's price without owning the underlying asset. Key advantages include: Tax efficiency : Profits from spread betting are free from UK Capital Gains Tax*. Similar to CFD trading, there is also no stamp duty to pay. However, it does mean when spread betting, you can’t offset any losses against other capital gains. Leverage : Spread betting allows you to control larger positions with a smaller amount of capital, amplifying potential profits but also potential losses - necessitating careful risk management. Wide range of markets : You can go both long and short 1000s of markets, including stocks, commodities, forex, and indices. Simplicity and clarity : Calculating your P&L from a spread bet is straightforward. Simply multiply the wagered amount by the per point movement in price. This simplicity makes spread betting accessible to traders of all experience levels. For example, if you buy £1 per point of Wall Street at 39000 and later that day sell it at 39400, then you make 1 x 400 = £400 profit. Conversely, if Wall Street falls 400 points to 38600, you lose £400. Sound familiar? Spread betting and CFD trading are very similar methods of trading financial markets but, importantly, may be taxed differently. * Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
SPREADEX:DJIEducation
by Spreadex
New Volume Footprint option on TradingViewHi all, This is the first (stream replacement) educational video with a very quick overview of volume. Tradingview just released the new Footprint Beta tool. It's something I asked them for a long time ago, so I am glad it's finally here! In this video I cover the time-price-opportunity tool as well as visible and fixed range. Leading into footprint. This is not a deep dive, it's more an intro to and how these things come together. If there is enough interest in this idea I will create a sequence based on trading volume in depth. Thanks for watching! See you on the next stream/idea.
COINBASE:BTCUSDEducation
by Mayfair_Ventures
11
SILVER TO $750 IN THE NEXT DECADE ?This has to be the biggest Cup & Handle Formation in Human History. Holy Smokes. Ok, let's dive into the Fundamentals: 1) Industrial Demand: Silver is essential in various high-growth industries such as electronics, solar energy, and medical devices. As technological advancements continue, the demand for silver is expected to increase significantly. 2) Investment Demand: Economic uncertainty, inflation, or financial crises often lead investors to seek precious metals like silver as a safe haven. 3) Supply Constraints: Silver mining production may face challenges due to factors like depleted mines, increased extraction costs, or regulatory changes. Supply shortages can occur if production cannot keep up with demand, which will ultimately lead to a short squeeze. 4) Monetary Policy and Inflation: Central banks' monetary policies, such as maintaining low interest rates or implementing quantitative easing, can weaken currencies. 5) Green Energy Initiatives: The push for renewable energy sources, particularly solar power, relies heavily on silver for photovoltaic cells. As global efforts to combat climate change intensify, the demand for silver in green technologies is likely to rise, boosting its price. (aka Agenda 2030 - The Great Reset) What scares me about this chart is that it suggests terrible events are imminent. The impact of these events cannot yet be measured, but they will be catastrophic for humanity. Stay Safe and keep stacking as fast as possible, NFA! CYANE
TVC:SILVERLong
by cy4ne
42
Three Factors Keeping Oil Prices in CheckAT A GLANCE: Despite ongoing geopolitical conflict, oil prices and volatility are relatively low A rise in U.S. crude production and weak demand in China are helping oil inventories maintain average levels Considering many factors like the Russia-Ukraine war, OPEC+ cutting production by 3.6 million barrels per day and conflict in the Middle East, many traders might be surprised to find out that oil prices are only around $82 per barrel and that implied volatility on crude options are trading at relatively low levels below 40%. Inventories Remain at Average Levels So why are crude oil prices not higher and more volatile? Part of the answer lies in inventories. Crude and product inventories are right around their seasonally adjusted averages for the past five years. This suggests that at least some cushion exists in the event of a supply disruption. Given that oil production is about 3.5% lower globally than it would have been without OPEC+ production cuts, how is it possible that oil inventories are still at average levels? There are two reasons. First, a boom in U.S. production has replaced about one third of what OPEC cut. The second reason is weak demand. China buys about 10 million barrels per day in the international markets, and its economy has been growing much more slowly than it was a few years ago. Slow growth in China often hits oil prices with a lag of about 12 months and may be among the factors preventing a further rise in global crude prices. Higher Prices Expected? That said, traders are displaying some signs of nervousness. The skew on CME Group’s WTI CVOL index is quite positive at the moment, suggesting that some traders are buying out of the money call options to protect themselves from the possibility of much higher prices. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com By Erik Norland, Executive Director and Senior Economist, CME Group *CME Group futures are not suitable for all investors and involve the risk of loss. Copyright © 2023 CME Group Inc. **All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
NYMEX:CL1!Education
by CME_Group
2
Exploring Auction Market Theory in Forex TradingAuction Market Theory (AMT) is a conceptual framework used to understand the dynamics of financial markets, viewing them as auctions where buyers and sellers interact to determine prices. Although the AMT was initially developed to understand & analyse price action movements in the stock market, some of its core concepts can also be applied to any market, including forex. Within the forex market, currency pairs are traded 24/5, with price driven by a multitude of factors such as economic data releases, geopolitical events, and market sentiment. Despite this complexity, AMT provides a framework for understanding market dynamics through the concepts of value, balance, and imbalances . Value represents the equilibrium price at which buyers and sellers agree on the fair value of an asset. Market balance occurs when supply and demand are roughly equal, resulting in stable price ranges, while imbalances arise from deviations from this equilibrium due to shifts in market sentiment or unexpected events. These imbalances can create trading opportunities for astute traders who can identify them and act accordingly. Lets now take a look into how this can be visually identified on a line chart using only price action. Example 1 On the left, we can see an area of market balance. This is usually evident when the market is range bound as we can see in this case. The midpoint of the range is the point of equilibrium. Value can be interpreted as the equilibrium price at which buyers and sellers agree on the fair value of a currency pair. This equilibrium is constantly shifting as new information becomes available and market participants reassess their expectations. When these expectations shift as a result of either economic data releases, geopolitical events, and/or market sentiment, price shifts away from the balanced price range and creates an imbalance within the market. Identifying value areas are important because these can act as an area of future support/resistance for price. Notice how in this example, after price displaces from the balanced range, it later came back and found support near the fair value within that range. Practical Application One practical application of AMT in forex trading is through the analysis of price action and market profile. By observing how price behaves at different levels and how volume interacts with price movements, you can gain insights into market sentiment and potential areas of support and resistance. For example, if a currency pair consistently fails to break above a certain resistance level despite multiple attempts, it may indicate strong selling pressure at that level, presenting an opportunity for short trades. Conversely, if a currency pair finds strong support at a particular price level, traders may look for buying opportunities as the market reverts to equilibrium. To conclude, Auction Market Theory offers a valuable framework for understanding the dynamics of the forex market. By analysing price action, volume, and market profile through the lens of AMT, you can gain a deeper understanding of market sentiment and identify potential trading opportunities. While no theory can guarantee success in trading, incorporating Auction Market Theory into your analysis can help you make more informed trading decisions. Please leave a comment if you've found this post helpful or if you have any questions. Happy Trading
FXOPEN:XAUUSDEducation
by Pips4Breakfastx
6
ON Semiconductor - betting on corrective UT rallyOn Semi conductor's selling has been weakened since Nov 23 and the larger falling wedge is pointing towards a larger bullish reversal pattern. First the cup and handle is close to a completion and will confirm the pattern once it breaks above US$72.84 resistance. Volume is low but is a potential sign of accumulation. Long-term MACD is close to a bottom crossover. Stochastic Oscillator is oversold. 23-period ROC shows bullish divergence. Hence will consider buying at spot or wait for pullback at 65.13 support. Target is at 79.85 and 98.54.
NASDAQ:ON
by William-trading
5
When Are You READY to Trade with REAL MONEY?Hello hello, R2F here with another discussion. Today, I'd like to go over the question, 'when do you know you are ready to trade with real money?' Too many traders rush into trading with real capital before they are ready, and end up losing more money than neccessary on learning journey. People are generally impatient creatures and want to get into actions as soon as possible. Perhaps they want to find out if they are magically a trading savant before wasting time on all the usual work that is required. However, trading is extremely simple, albeit not easy. The difficult part comes in the form of the investment of time and experience, and refining yourself as a person. Once you had that in the bag, trading offers the potential for generational wealth that comes with the freedom of time. Without further ado, I share my thoughts on how to approach this burning question. - R2F
Education
by Road_2_Funded
39
Nvidia Q1 25 earnings preview – will the Kraken awake?Due to report shortly after market close on 22 May (typically 06:20 AEST / 21:20 UK). “The most important stock in the world” - That was the label given to Nvidia (NVDA) throughout February as we geared up for its highly anticipated Q424 earnings results. Where, at the time, the sheer number of articles written on the stock was incredible – when you are a momentum stock, you need this sort of attention to fuel the beast. Since March though the hype has settled, and we see reduced news flow. In fact, we’re seeing an increasing number of articles directing traders away from Nvidia and towards other smaller names in the AI-semi space that could potentially see explosive moves. With the momentum in NVDA falling away since Nvidia’s last earnings, and with Nvidia lacking a near-term catalyst, amid some concern of an over-supplied chips market, market players have moved their attention towards quality defensive areas of the equity market and value as an investment factor, with utilities, energy, and materials all seeing strong outperformance of late vs the S&P500. We can also see this lack of momentum in NVDA’s technical set-up and price action, with shares rallying in a $205 range between $947 to $756, and now finding a fair value around $900. Traders remain buyers of pullbacks, where the trigger for long positions seems to be when the shares fall 10% below the 50-day moving average. Nvidia may not be the hot topic it was in February, is that about to change? For a short period, absolutely, with the eyes of the trading world falling once again on NVDA’s quarterly earnings. The options market is pricing a -/+8.9% on the first day of trade after earnings (i.e. the 23 May), which if priced correctly, from current levels, could see the stock trade into new all-time highs or see it closer to $820. With a current market capitalization of $2.260t, an 8.9% move would equate to $200b in gained/lost market cap in one day, which would essentially be larger than the market cap of 82 companies in the NAS100. We can also go back over the past 8 quarterly earnings announcements and that Nvidia has seen an average move of 8.5% on the day of reporting, with shares closing higher in 6 of the past 8 quarters. Many will recall the Q424 earnings (reported in February), where the share price closed +16.4% on the day and went on to rally a further 23.4% over the following 11 trading sessions. Earnings pedigree – few do it better Let’s not forget that few companies globally have NVDA’s form at beating analysts’ consensus expectations on earnings-per-share (EPS), revenue, or gross margins. Perhaps the bar is perennially set too low, but NVDA has beaten expectations for revenue for the reporting quarter, as well as on expectations for the upcoming quarter, on all but two occasions since 2018: Q32019 and Q2 2023 being the exceptions. In the past 4 quarterly earnings reports, NVDA has beaten guidance on sales for the upcoming quarter by an average of 14% - remarkable form, especially when they have a CEO (Jensen Huang) who knows how to hit the sweet spot and say exactly what investors want to hear in the post-earnings conference call. Earnings expectations for Q1 2025 – will they beat yet again? Q125 EPS – $5.51 (Q2 25 guidance expectations - $5.96c) Q125 revenue - $24.58b (Q2 25 guidance expectations - $26.617b) Data centres revenue - $20.903b (Q2 25 expectations - $22.567b) Gross Margins – 77.01% (Q2 25 guidance expectations - 75.61%) Recall in the prior earnings call CEO Jensen Huang suggested AI was at ‘a tipping point, which was a big topic of discussion. Given that NVDA only recently held its GTC conference in March and explored the future across multiple touch points, this time around traders will react on news that isn’t already discounted into the stock - growth opportunities, maintain its monopolistic qualities, levels of capex, and future partnerships. Traders have found opportunities outside of AI-related semi and while many feel Nvidia lacks a near-term catalyst, the element of surprise is always there. The idea of ‘as goes Nvidia, as goes the market’ has dissipated, but it could make a return – and with big movement expected, this is a key event for equity and index CFD traders to have on the radar.
NASDAQ:NVDA
by Pepperstone
35
Gold Price (XAU/USD) Is Testing an Important Resistance ZoneGold Price (XAU/USD) Is Testing an Important Resistance Zone On April 16, we wrote why the $2,380 zone is an important resistance area. The XAU/USD chart shows that: 1) After fading fluctuations (they formed a narrowing consolidation triangle - shown in green), the price of gold dropped sharply (shown by a black arrow) on April 22-23. 2) Then, the price found support in the form of the lower border of the ascending channel (shown in blue), which has been in effect since the beginning of March. This led to the formation of another consolidation pattern between the blue lines. 3) An upward breakdown of the red lines on May 9 could be interpreted as an attempt by the bulls to resume the upward trend within the blue channel, but we could expect that the green triangle with its axis around 2380 would provide resistance. However, it is important to pay attention to the nature of buyers’ behaviour when the price approaches an important resistance - the XAU/USD chart shows that the bulls’ persistence has quickly depleted. From the point of view of technical analysis of the gold price, a bearish engulfing has formed on the chart (shown by a blue arrow) in the area of 2380. In other words, the price of gold tested the resistance level, revealing the activity of bears defending their territory. From the point of view of fundamental analysis, market participants can position themselves ahead of the key news for the beginning of the week: the CPI index will be published on Wednesday at 15:30 GMT+3. But if economic or geopolitical news does not change the balance, in which, as we observe, the initiative is on the side of the bears, then this may create a threat of a breakdown of the blue channel’s lower border. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
FXOPEN:XAUUSD
by FXOpen
8
XAU/USD 13 May 2024 Intraday AnalysisH4 Analysis: Bias/Analysis remains the same as analysis dated 12 May 2024. -> Swing: Bullish. -> Internal: Bullish. Price has printed a bullish BOS. After bullish BOS expectation is for price to pullback. We have nested Daily and H4 supply levels where price is expected to initiate pullback. CHoCH is positioned at quite a distance away from current price, therefore, there is a possibility price could engineer a CHoCH closer to current price to indicate initiation of pullback. Previous intraday expectation dated 10 May 2024 was for price to continue bullish, react at nested Daily and H4 POI levels to start pullback phase which price is indicated as printing. Intraday expectation: Price to continue bearish, react at discount of 50% EQ or H4 POI, both of which are closely positioned before targeting weak internal high. H4 Chart: M15 Analysis: -> Swing: Bullish. -> Internal: Bullish. Price has printed a printed a bullish BOS and iBOS After BOS we expect price to pullback. First indication, but not confirmation of pullback initiation would be for price to print a bearish CHoCH which is denoted with a blue dotted line. Intraday expectation dated 10 May 2024 was for price to react at nested Daily and H4 POI levels to initiate pullback, which price did. Current Intraday expectation: Price to react at M15 POI, discount zone of 50% EQ or H4 POI before targeting weak internal high. M15 Chart:
OANDA:XAUUSD
by Khan_YIK
34
GameFi, Blockchain games, Top projectsGameFi GameFi is a combination of gaming and decentralized finance that combines blockchain technology, NFT (non-flammable tokens), DeFi (decentralized finance), and the play-to-earn (P2E) model to create a unique gaming experience. This innovative approach lets players enjoy the game and earn real money through in-game actions and assets. At its core, GameFi uses blockchain technology to create decentralized gaming platforms where players have full ownership and control over their in-game assets. These assets, often represented as NFTs, can be exchanged or sold on NFT trading platforms, allowing players to monetize their gaming experience. DeFi is essential in GameFi by offering various financial services in the game ecosystem. Players can farm, bet, and provide liquidity, generating passive income while participating in the game. The P2E model is a critical component of GameFi as it allows players to earn cryptocurrency or NFT by completing tasks, competing with other players, and advancing in the game. This model can potentially revolutionize the gaming industry by incentivizing players to invest time and effort into their gaming experience. GameFi projects often combine elements from different sectors of the cryptocurrency space, including tokens, DeFi, NFT, and the meta-universe, to create an immersive and rewarding gaming environment. An example of how the economy works in GameFi through smart contracts: The History and Evolution of GameFi The history and evolution of GameFi is a fascinating journey marked by the innovation, growth, and merger of the gaming industry and decentralized finance. GameFi has seen significant milestones and key events that have shaped the industry from its inception to its current state. In the early days of GameFi, projects such as Axie Infinity and CryptoKitties introduced the concept of play-to-earn (P2E) games, where players could earn cryptocurrency by playing games and participating in the in-game economy. This was a revolutionary development as it allowed players to monetize their gaming experience in previously impossible ways. GameFi's development was also marked by introducing various innovative concepts and technologies. For example, integrating NFTs (non-game tokens) allowed players to own their in-game assets and trade them on NFT trading platforms. This added a new value and utility to the game as players could now buy, sell, and trade unique digital assets. Another significant milestone for GameFi was the development of DeFi (decentralized finance) protocols in gaming ecosystems. This allowed players to farm, bet, and provide liquidity, providing new ways to generate passive income while playing. The "play-and-own" concept was also a critical development in GameFi, shifting the focus from just playing the game to owning and managing in-game assets. This has created a more engaging and rewarding gaming experience, where players play a more active role in the life and development of the games they play. Notable projects such as Legend of Arcadia, Panzerdogs, and CREO Engine have significantly shaped the GameFi industry. They have introduced innovations, partnerships, and technical advances that have pushed the boundaries of what is possible in gaming and decentralized finance. As GameFi continues to evolve, it faces challenges and growth hurdles, such as regulatory uncertainty and the need for more precise rules in the crypto-gaming space. However, the industry is also experiencing exciting developments, such as the integration of artificial intelligence, scalable second-tier solutions, and the emergence of new game genres. GameFi market today The GameFi market is experiencing significant growth and development as the number of active players and games continues to increase. In December 2023, there were more than 1 million active players in the GameFi sector. By April 2024, the number had grown to 3 million, representing a 300 percent growth in active users from 2023 to 2024. This indicates a rapidly growing and engaging market with a projected increase in market size due to this user engagement trend! The GameFi sector had a market capitalization of $20.66 billion. The market shows a diverse landscape in terms of user distribution across platforms and networks. For example, active games with the highest number of users in recent weeks include Sunflower Land ( NSE:SFL ), SecondLive ( NASDAQ:LIVE ), Planetix ($IXT), MOBOX ( AMEX:MBOX ), Tower Token ($TOWER), Crypto Unicorns ( LSE:RBW ), and others. This wide range of active games across multiple platforms and networks indicates a healthy and competitive marketplace where users participate in different games and have different experiences. Technology and tokenomics of GameFi projects The technology and tokenomics behind GameFi projects are primarily driven by integrating blockchain, NFTs (non-gaming tokens), and smart contracts. This combination creates unique gaming experiences and economic incentives, revolutionizing the gaming industry. Blockchain technology is the foundation of GameFi projects. It is a decentralized and distributed digital ledger that records transactions across multiple computers, providing transparency and security. This technology eliminates the need for intermediaries and central authorities, allowing players to own and control their in-game assets fully. Using blockchain in games also enables cross-game interoperability, where players can transfer assets from one game to another. NFTs play an essential role in GameFi by representing unique in-game assets such as characters, weapons, and lands. Unlike fungible tokens such as Bitcoin or Ethereum, NFTs are unique and cannot be replicated, making them valuable and collectible. Thus, players gain ownership of their assets, which can be traded on NFT trading platforms. The value of NFTs can increase depending on their rarity and usefulness in the game, creating economic incentives for players. Smart contracts - self-executing contracts whose terms are written directly into the code - allow you to automate various in-game processes. For example, smart contracts can create an in-game economy, manage assets, and reward players for completing tasks or participating in events. This enhances the game experience by providing players with a transparent and secure environment for economic activity. Tokenomics, or the economic model of a GameFi project, is another crucial aspect of these projects. It involves creating and distributing tokens within the game ecosystem that can be used for various purposes, such as purchasing in-game items, bidding for rewards, or participating in management decisions. Tokenomics design plays a crucial role in incentivizing player participation and maintaining the long-term sustainability of the gaming economy. The combination of blockchain, NFT, and smart contracts in GameFi projects creates a new paradigm in the gaming industry where players have full ownership and control over their in-game assets, and economic incentives are integrated into the gameplay. This enhances the gaming experience and lets players earn real money for their in-game actions. Gaming blockchains Integrating blockchain technology into the gaming industry, known as GameFi, has revolutionized how players interact and how they are rewarded for playing time or achievements. The gaming industry has blockchains such as SKL, WAX, PORTAL, and VANRY. These are the leading gaming blockchains, each unique product with advantages and vast opportunities in the fast-growing GameFi sphere. SKL SKL is a blockchain designed to create high-performance dApps to provide zero-gas scaling for players and solve the problems of high transaction fees and slow transaction processing on the network. SKL allows developers to create unique games with instant transactions, which is a priority in game creation, as well as correct operation of smart contracts and improving the quality of gameplay through the speed of the exchange processes and receiving game objects in the game. WAX WAX is a specially designed blockchain for trading virtual items and digital collectibles, making it a popular and high priority for developers to create blockchain games and NFT markets. The WAX protocol allows in-game objects to be created, bought, and sold, providing a seamless way for gamers to monetize their gaming activity. In addition, WAX can interact with the Binance Smart Chain, making it possible to transfer NFTs between players on different blockchains. PORTAL PORTAL is a cross-chain gaming system that connects all games into a single WEB3 network and establishes a connection between blockchains. PORTAL is designed to simplify moving players between games using a single account, making the platform convenient and exclusive. The problem that this project addresses is the barriers related to the fragmentation of gaming ecosystems. VANRY Vanar Chain is a blockchain ecosystem designed explicitly for the games industry and intended to provide developers with tools and modules to facilitate the transition of games to Web3. A key feature of VANRY is its focus on direct integration with blockchain, which was a crucial factor in attracting Google Cloud. This capability allows established brands to master Web3 efficiently. The Vanar Chain ecosystem is also supported by NVIDIA, Phoenix Grounds Studio, and Revolut. Promising projects in GameFi: Mavia The Heroes of Mavia project is a blockchain-based strategy game that allows players to compete in battles for cryptocurrency rewards while developing and improving their bases worldwide. Service Studios developed the game, which is set on an exceptionally designed island called Mavia. One of the critical aspects of Heroes of Mavia is the ability to earn natural financial resources, mainly through the use of a cryptocurrency called Ruby. Players can collect Ruby and other valuable resources, such as Gold and Oil, which are essential to the gameplay. Integrating blockchain and Play-to-Earn (P2E) mechanics creates new opportunities for players to enjoy their favorite game and earn additional income. An NFT trading option also allows players to buy, sell, and exchange game assets such as Land, Heroes, and Statues. In addition, Heroes of Mavia is backed by Binance Labs, confirming the project's potential and prospects in the GameFi sector. According to the vesting, most of the coins are still unlocked, and full unlocking for all users will come in November 2029. After researching the blockchain, 85.59% of the coins are locked and waiting to be unlocked in the wallets of investors, team members, and enablers. This implies that the project is focused on long-term investing, and investment funds will pump up the price closer to their full unlocks! Overall, Heroes of Mavia is an innovative GameFi project that combines exciting gameplay, the ability to earn natural financial resources, and integration with blockchain to attract the attention of players and investors. Shrap Shrap is the first innovative blockchain-enabled FPS (First-Person Shooter) game developed on the Avalanche blockchain. The game allows players to buy, sell, and trade digital assets, including in-game items and characters. Shrap has caught the attention of investors and players due to its unique concept that combines elements of a classic FPS with blockchain capabilities. Players can earn rewards for participating in various in-game events and contests, allowing them to increase the value of their digital assets. Sharp also allows users to create and sell user-generated content, which opens up new opportunities for players to express themselves creatively and create a sustainable economy within the game. Shrap has successfully raised $37.5M in funding, which confirms investors' interest in promising GameFi projects. Over the past week, Wintermute has become more active and has started funding its own wallets on exchanges. This is a direct sign of the upward movement that will be provided by its software to manage the coin's market price! It is currently a great price to buy with the expectation of a long-term investment. Karate Project Karate is a groundbreaking platform that combines full-contact karate with CGI and Epic Games' Unreal Engine. It gathers top athletes, including Olympic medalists and national champions, who compete in various weight classes. Karate Combat uses blockchain technology to create a secure and innovative asset management and decision-making system. Users can earn rewards by playing various karate-related games and completing in-game challenges. Within the game, the voting system allows one to earn and manage digital assets using the $KARATE cryptocurrency and influence the project's development. Karate is also getting ready to move up soon. According to the latest significant transactions, Wintermute has received a sufficient portion to manage the price. It is also worth noting that the project team and their investors have more than 90% of the momentum issue concentrated on their asset wallets. This will make it relatively easy to manage the price of the coin! Karate Combat successfully fuses sports and entertainment with blockchain, creating new opportunities for interaction between athletes, fans, and investors. Now is a good opportunity to buy this asset, as investors, enablers, and the team will add even more assets to their wallets and try their best to pump up the price for their future unlocks. GMEE GMEE is part of Animoca Brands, a major player in the blockchain-based gaming industry. It is backed by Binance Labs, which gives the project significant credibility. GMEE is a token to access and manage an entire gaming platform aimed at merging the world of gaming and decentralized finance (DeFi). It runs on a blockchain that allows players to earn, trade, and own digital assets with real value in a decentralized and more democratic manner. One of the critical aspects of GMEE is its integration with the Telegram platform, making it the first Telegram Gamefi token. This allows for a large and active user base of over 1 million daily active users, which is a testament to the popularity and growth potential of the project. The fact that GMEE is Telegram's largest gaming community further emphasizes its importance in the GameFi space. In addition, GMEE aims to bring blockchain to millions of gamers through its mobile gaming platform. This approach makes blockchain technology more accessible to a broader audience, especially those new to cryptocurrencies and blockchain technology. By offering a seamless and convenient experience, GMEE can contribute to the mass adoption of blockchain gaming. GMEE is a significant player in the blockchain-based gaming industry, backed by reputable organizations and offering a unique and accessible gaming experience. Its focus on mobile gaming and integration with the Telegram platform sets it apart from other projects in this field. Investors also have a large amount of circulating issuance, allowing them to manage the asset's price easily. The end of unlockings is coming in March 2025, just as we approach the top of the bull cycle (September 2025). It is worth considering for investment for no more than one year. Conclusion The GameFi market is projected to grow from $12.8 billion in 2023 to $126.3 billion by 2032 at % compound annual growth rate (CAGR) of 29.0%. This growth is attributed to the growing adoption of blockchain technology and increasing interest in blockchain-based games. Despite a decline in the number of new Web3-based game launches in 2023 compared to previous years, the market still shows high interest in blockchain-based game development, indicating a bright future for the sector. Advancements in blockchain technology are expected to address scalability and efficiency issues, making GameFi platforms more accessible and user-friendly. The emergence of Layer 2 and Layer 3 solutions such as Polygon and Immutable X indicates a growing trend to improve user experience and attract more users from Web 2 games to Web 3 games. Moreover, the future of GameFi is characterized by a potential increase in institutional interest and the entry of established gaming giants into this space. This may lead to more complex games with better gameplay and sustainable economic models. Nevertheless, challenges remain, such as the need to balance economic incentives and engaging gameplay and the ongoing problem of market volatility. Despite these challenges, GameFi's future looks promising, and significant growth and transformation are expected. Best regards EXCAVO
Long
by EXCAVO
22
Trading opportunity. What to buy?In the crypto market, the largest assets are currently experiencing similar situations. On the charts, we can see that six assets have formed sideways trends. Prices for all six assets are currently at the bottom of these sideways trends. For four assets, the price temporarily dropped below the lower boundary of the sideways trend, where liquidity from sellers was collected, but then returned to the sideways trend. The prices of five assets, excluding BNB, are in zones where it makes sense to consider buying. The most interesting potential is with DOGE and AVAX. One possible strategy to consider is buying four assets that you like the most.
Long
by AlexeyWolf
16
How To Trade Triangles Like A Pro?Welcome, traders and investors, to our educational post on ascending and descending triangles! In the fast-paced world of financial markets, understanding chart patterns like these is crucial for making informed trading decisions. Ascending and descending triangles are powerful tools that provide valuable insights into market dynamics and potential price movements. In this post, we will delve into the characteristics of these patterns, explore how to identify them on price charts, and discuss effective trading strategies to capitalize on their implications. Whether you're a novice trader or an experienced investor, mastering these patterns can greatly enhance your ability to navigate the markets with confidence and precision. What Is An Ascending Triangle? An ascending triangle chart pattern is formed during the upward price movement in an uptrend. The price tends to consolidate for a while and allows the trader to draw a horizontal trend line on the upside. Simultaneously, it allows the trader to draw a rising trend line downwards. The pattern implies that the price is consolidating and existing buyers are closing partial positions and the market is expecting new buyers to join and continue the Bullish trend. As a result, the price consolidates on the upper trend line and is unable to move higher and make new higher highs. However, the price does not make lower lows either, instead makes higher lows. So technical analysts look for trading opportunities and enter the market once the pattern is spotted on a price chart. How To Identify The Ascending Triangle? The ascending triangle pattern is similar to the other triangle patterns, but the location and shape of the triangle formation is very important. The shape of the ascending triangle should strictly contain the upper horizontal trend line and the lower rising trend line, failing this will invalidate the pattern. The pattern must be located within the uptrend, so it can be validated as a trend continuation pattern. The ascending triangle can be spotted easily by its shape. The horizontal upper trend line and the rising lower trend line make it easy to spot the triangle. An ascending triangle forms during a bullish uptrend as the pattern is a continuation pattern. However, the pattern may form in any part of the chart and trend. The ascending triangle pattern formed during a uptrend is significant and produces the best trading results. So traders should look for the pattern while prices are in an uptrend and identify it using the triangle shape. Features That Help To Identify The Ascending Triangle: ▪️ There should be an existing uptrend in the price. ▪️ The upper trend line should be horizontal. ▪️ The lower trend line must be a rising trend line. ▪️ The trend lines should be touched at least twice. The greater number of times the trend line is touched, the stronger it gets. How To Trade The Ascending Triangle? As mentioned earlier, the pattern not only provides the best entry point but provides the stop loss and takes profit too. Moreover, these points can be clearly defined and understood by the trader. Entry point: During the market consolidation phase, the upper trend line acts as a resistance and the lower trend line acts as a support. As the market consolidation ends and the price starts to get momentum, it breaks the upper trend line. The best entry point is the breakout of the upper trend line or the resistance. Price breakouts are normally associated with spikes in the trading volume. The increased trading volume implies the entry of fresh buying orders. Traders should look for trading volume levels during the breakout and confirm the breakout before entering the market with a BUY position. The next confirmation is the classic price action which shows that the resistance has changed into support. Normally, price once breaks the upper trend line tries to move lower but will have ample support from the upper trend line which now starts to act support. This price action confirms the buying interest and gives the trader with additional confirmation and confidence. Stop Loss: The best stop loss method is to exit the trade if the price breaks the support or the lower rising trend line. The breakout of the lower trend line implies the non-availability of the upside momentum and indicates the possibility of the return of the bears. (In the cryptocurrency market, there are often fake breakouts, and that's also worth considering!) Take Profit: The projected take profit target is the farthest distance between the upper and lower trend lines. At the beginning of the pattern, the upper and lower trend line will be wider from each other. This distance can be measured and can be projected from the entry point to the upside. As per the pattern, this is the best take profit target. What Is An Descending Triangle? A descending triangle appears during a downtrend. The price tends to move lower and then finds a consolidation area, this consolidation area is the potential price level at which the market allows the trader to draw a horizontal trend line, due to the failure to make lower lows. On the other hand, the price tries to move higher and fails to make any higher highs. Oppositely, the failure to make higher lows results in lower lows so the price action allows the technical trader to draw a descending trend line on the upside. The combination of the upper and the lower trend line forms the shape of the descending triangle. Traders look for trading opportunities once the price consolidation ends. Price breakout from the descending triangle pattern indicates the beginning of the trend resumption. So traders enter the market in the direction of the previous trend direction. How To Identify The Descending Triangle Pattern? The following are the features that help to identify the descending triangles chart pattern. ▪️ There should be an existing downtrend in the price. To validate the pattern, it should form during an existing downtrend. The pattern that forms during an uptrend should be invalidated and not taken into account. As the trend is a BEARISH continuation pattern the formation during the downtrend is essential. ▪️ A lower trend line should be horizontal. The price should fail to make lower lows and usually bounce from the low, as a result, the lower trend line should be as horizontal as possible. The upper trend line must be a descending trend line. The price action on the upper side is very crucial for this pattern. The failure of the price to make higher highs and instead of making lower highs shows the failure of the price to reverse the trend direction. ▪️ The trend lines should be at least touched twice, the greater number of times the trend line is touched it gets stronger. Trend lines must be validated independently, as a general rule of the trend line the price should touch the trend line at least twice. However, the more times a trend line is touched it gets stronger. The upper and lower trend lines converge each other and look to join at the end, thereby forming the shape of a descending triangle. Traders can spot the pattern easily due to the shape of the trend lines, as the chart will make it easier to spot a consolidation area during a downtrend. How To Trade The Descending Triangle Like A Pro? As discussed earlier the pattern is a completely trade-able pattern, meaning it provides the trader with the best entry point and stops loss, and takes profit points. It must be mentioned that all of the parameters can be measured and identified easily. Entry Point: During the market consolidation phase, the price action makes the price bounce from the lower trend line and prevents the price to move higher than the upper falling trend line. The resultant shape of the descending triangle will be broken the consolidation phase ends as traders enter a fresh buying phase. The price breaks the lower trend line and continues to move lower, which is the prevailing downtrend. Traders should confirm the entry point using additional confirmation using the trading volumes. Any breakout of trend lines or triangles is generally associated with increased trading volumes. The increased trading volumes provide the necessary momentum for the price movement. So traders should look for increased volumes, however, if the descending triangle breakout does not show any increase in volume traders should refrain from trading as it may be due to a false breakout. The next type of confirmation is by applying the support and resistance or trend line trading rules. The lower horizontal trend line effectively acted as a support during the market consolidation phase, while the upper trend line acted as a resistance. So once the price breaks the support, it becomes resistance. There may be few instances when the price broke the support line and fails to continue or displays a false breakout. Stop Loss: The stop loss is the upper falling trend line because, if the price makes higher highs it shows the market intent to move higher or reverse the trend. So the best method is to exit the position if the price breaks the falling upper trend line or resistance. Take Profit: The pattern allows identifying the take profit by measuring the longest distance between the trend lines. Normally during the beginning of the descending triangle pattern is the longest distance, this shall be measured. This measurement from the entry point will provide the potential take profit position. Understanding ascending and descending triangles is essential for any trader navigating the financial markets. These chart patterns offer valuable insights into potential price movements, providing traders with opportunities to enter and exit positions strategically. Ascending triangles typically indicate bullish continuation patterns, suggesting that an uptrend may persist after consolidation. On the other hand, descending triangles often signal bearish continuation patterns, indicating potential downtrends following consolidation. By recognizing these patterns and applying appropriate trading strategies, traders can enhance their decision-making process and improve their overall trading performance. Remember to combine pattern analysis with other technical indicators and risk management principles for optimal results in the dynamic world of trading. Happy trading!🩷 Thanks for Your attention 🫶 Always sincerely with You, Kateryna💙💛
BINANCE:BTCUSDEducation
by RocketBomb
27
The TradingView Show: Live With OKX & TradeTravelChillGreetings, TradingViewers worldwide! This interview was conducted live and is now available for playback and on-demand viewing on our TradingView account, accessible for free. This program delves into trader education, cryptocurrencies, and the flexibility of trading from anywhere with an Internet connection. Keep in mind that this show was streamed LIVE, so you might come across references to our live chat. No worries, though; you can still watch the show instantly and access the comments section below. Feel free to leave us your feedback! Here's a glimpse of what we cover in this episode: 1. Gain insights into crypto trading, specific strategies, and the essence of trading them. 2. Understand the dynamics of trading on-the-go and establishing personal rules in an era where crypto trades round-the-clock and connectivity is constant. 3. Discover how TradeTravelChill began on TradingView and OKX, now leveraging our integrated broker partnership. TradeTravelChill and OKX are partners, with OKX being a broker partner on our platform, facilitating seamless connections for traders. 4. Dive into trade ideas and setups in crypto markets, particularly focusing on major coins. 5. Explore some of the hottest topics in crypto markets at the moment. Our objective with this show is to educate traders worldwide! While we don't provide direct advice, our focus is on empowering traders to learn, practice, and excel in the markets. Relax, ask questions, and enjoy the show!
Education
by TradingView
11
Factors Driving Gold (XAUUSD) Prices Up Analysis: Factors Driving Gold Prices Up Here is why we think it will go up (FUNDAMENTAL ANALYSIS) Weak NFP Report and Potential Fed Rate Cuts: The recent Non-Farm Payrolls (NFP) report came in weaker than expected, signaling sluggish job growth in the United States. This unexpected weakness has raised speculation that the Federal Reserve may consider cutting interest rates to stimulate economic growth. Impact of Weak NFP Report: The NFP report provides insights into the health of the US economy, and a weaker-than-expected report suggests economic challenges. Which helps the fight against inflation. Potential Fed Policy Response: In response to disappointing economic indicators, such as the weak NFP report, the Federal Reserve may consider implementing monetary policy measures to support economic recovery. One such measure could be a reduction in interest rates to stimulate borrowing and spending, thereby bolstering economic activity. Gold as a Safe-Haven Asset: Gold is often viewed as a safe haven asset during times of economic uncertainty and inflation. The prospect of interest rate cuts by the Federal Reserve can further enhance gold's appeal, as lower interest rates typically diminish the opportunity cost of holding non-yielding assets like gold. Here is what to watch out for that might stop it from going up: Market Response and Federal Reserve Policy Decisions Market participants should closely monitor any signals or announcements from the Federal Reserve regarding interest rate decisions, as they can significantly influence investor sentiment and, consequently, gold prices. If it becomes more likely for the Federal Reserve to not cut rates, well expect gold prices to plummet. Economic Indicators and Geopolitical Developments: It's important to stay attuned to key economic indicators, central bank policies, and geopolitical developments that could impact gold markets. Any shifts in these factors could alter the trajectory of gold prices. (TECHNICAL ANALYSIS) Trade setup explained: Take-Profit is set at 2344 due to a strong resistance line there (see white horizontal line) Stop-Loss is set at 2311 which is right under 2315, 2315 has been showing stronger support. Conclusion: The weak NFP report and the potential for Federal Reserve interest rate cuts have contributed to upward pressure on gold prices. However, market participants should remain vigilant and assess the evolving economic landscape and its impact on gold markets. By monitoring economic indicators and central bank policies, investors can make informed decisions in the dynamic world of gold trading. Like always use proper risk-management. Greetings, Zila
OANDA:XAUUSDLong
by ZILATRADES
32
Trade identification: Using bitcoin as an exampleHello, Trade identification is the process through which you are able to identify setups that can be actioned on in the markets. For this example, I shall be using the BTCUSD chart to chant my path as I look for tradeable setups. 1: Structure drawing Identifying the structure of trades is very key since it creates a sense of knowing where the market is at from a greater point of view. The structure on a 2 weeks chart shows that the crypto is at the top of the chart. This shows that it might not be a good time to buy since it is advisable to buy at the bottom and sell at the top. However, we can always look for smaller trades using lower timeframes and get better setups. 2: Move to lower time frames & identify patterns. Patterns are very key in helping you identify tradeable assets. For my asset I moved to the 6h timeframe to zone in and identify tradeable opportunities. This helped me identify the Expanding triangle setup on a bigger scale. This is a sideways move that will help me trade on the asset for the short term. In the expanding triangle I was able to identify other smaller correction patterns that guide me on how the market is moving. 3: Entry identification After you have determined where you are at in the eco cycle, very key is now to identify the next causes of action. You must never trade at the top (buying overpriced assets). Very important is to always note that there will always be more opportunities in the future and never to chase trades that have already gone. The ideal situation is to look for corrections as entry points and buy/sell with them. Next now will be to look for areas where you can enter on an even lower timeframe. The chart shows that a correction is happening on a lower timeframe (1hour). Now have an alert at the bottom of the correction also coupled with indicators. Thats the entry point of the trade. 4: Target setting The exit target shall be set using the 6 hour chart and will be at the top. A stop loss will be just behind the trendline as shown below. This is very key for risk management. Now wait for the price to come close to your entry points and good luck. We shall follow this trade to end.
COINBASE:BTCUSDEducation
by thesharkke
28
The TradingView Show - Must-see Charts with TradeStationHello to all the global traders! We're live with David Russell, TradeStation's Global Head of Markets. He's also the one who publishes the research and analysis from the official TradeStation account on TradingView. Follow them here: www.tradingview.com In today's show, we're discussing the most important charts, interesting trades, and providing education to all traders. What's on David's mind? Interest rates, earnings, and big moves happening across equity markets from Apple to Goldman Sachs, Bitcoin, and copper stocks like FCX. We look forward to meeting all the traders out there and thanks for watching. Ask questions in the comments section, share your best insights, and be sure to subscribe to our future shows, all happening on TradingView and with our partners, influencers, sponsors, and global community. This show is strictly for education and entertainment. Never advice! Look first, then leap! - TradingView Important disclaimers for ETFs: www.tradestation.com Important disclaimers for options: www.theocc.com All other important disclaimers: www.tradestation.com
NASDAQ:AAPL
by TradingView
10
Tesla among top 10 losers. Next what?Tesla is the 7th worst performer YTD in the Nasdaq-100. It is the 11th worst performer in the S&P 500. The stock stands 28% lower. Still, after reaching its lowest level on 22/April, the stock has rallied a remarkable 30%. On 24/April, the stock rallied 12% after the positive earnings call. On 29/April, the stock jumped another 15% after the announcement of the Baidu ( HKEX:9888 ) partnership. Yet in the longer term, outlook remains cloudy as margin compression owing to fierce competition from Chinese EV makers and the wider EV industry slowdown. MUSK'S CHINA VISIT LEADS TO BAIDU DEAL Last Sunday, Elon Musk flew to China on a surprise visit. The last minute visit led to speculation over a push to launch full self driving (FSD) in China. Persons close to the matter stated that Musk was expected to discuss the rollout of FSD software and permission to transfer data overseas, as reported in Reuters . One of the key hold-ups for the rollout of FSD in China has been access to map data. Musk’s recent trip seems to have addressed that as Tesla announced a partnership with Baidu for map data access. While, Musk has long claimed that Teslas will be able to run FSD without map data, this will allow them to roll-out the offering much sooner and boost the slowing revenue in one of their leading markets in China. FSD has been a recent revenue driver for Tesla. In 2024, Siena Capital analysts estimated that Tesla recognized almost USD 700 million in revenue, which represents 4.3% of their automotive revenue after stripping regulatory credits. BYD PARTNERSHIP Another strategic partnership that has helped boost investor sentiment at Tesla has been the strategic partnership with BYD ( HKEX:1211 ). While both companies are major competitors, BYD recently overtook Tesla as the largest EV manufacturer in terms of overall vehicle sales (including hybrids). However, the fierce competition has also taken a toll on both companies as it has led to price cuts to win over more customers. That’s why a technology-sharing partnership between the two companies is positive. While, they continue to compete, the partnership – specifically related to the use of BYD’s LFP battery technology in certain low-cost Tesla models – remains a positive for Tesla as it allows them to diversify their battery supply chain, reduce production costs, and enhance range for their lower-cost models. LOW-COST MODELS COMING SOONER THAN EXPECTED A recent hurdle for Tesla has been delay behind the upcoming low-cost Model 2 vehicle which plays a pivotal role in Tesla’s growth strategy. According to a Reuters report , Tesla had opted to cancel or indefinitely postpone plans for the upcoming Model 2. Instead, it would focus its attention on Robo-Taxis. The low-cost car represented the next phase of Musk’s long-term master plan to produce affordable electric vehicles through manufacturing process improvements. Fears were that fierce competition in the low-cost category by Chinese manufacturers would make Tesla’s efforts unfeasible. Yet, Elon Musk disputed the Reuters report and at the Q1 earnings investor call, it was verified. The Model 2 strategy is still on track. In fact, it may come sooner than expected at the end of 2024. Musk stated that Tesla was accelerating the launch of more affordable models that will be available to produce on its existing manufacturing lines. Tesla aims to fully utilize its current production capacity towards these efforts and grow manufacturing 50% over 2023 before they start investing in new manufacturing lines. Additionally, the robo-taxi push is also underway. Elon Musk stated that Tesla will launch its long-awaited robo-taxi product as soon as 8/August/2024. The autonomous driving robo-taxis will earn revenue for their owners. Moreover, owners will be able to add their Tesla's to the robo-taxi shared fleet with just one click on the Tesla app. BEARISH CLOUDS PERSIST Despite these recent developments, the outlook for Tesla remains undeniably cloudy. At its Q1 earnings, Tesla reported dismal results. But it’s not just Tesla which is struggling, it’s the wider EV industry. EARNINGS SUMMARY Tesla's Q1 2024 earnings report released on 23/April revealed a challenging quarter marked by margin compression and a slowdown in electric vehicle (EV) sales, influenced by strategic price cuts and broader economic factors. Financially, Tesla reported a reduction in its automotive gross margin to 17.4%, down from previous quarter, reflecting the impact of significant price reductions across its model lineup intended to stimulate demand amid a softening global market. These price adjustments, while successful in driving a short-term uptick in sales volumes, did not fully counterbalance the revenue per unit loss, leading to an overall revenue of $21.3 billion and earnings per share (EPS) of $0.45, both figures below analyst expectations. Quarterly revenue and deliveries were the lowest since 2022. One of the bright spots has been Tesla’s efforts to control costs. Not only did the company recently announce layoffs. It also stated that it would slow the growth of its Supercharger network to bring costs under control. Moreover, investors were not as concerned about the concerning financials following the investor call where Musk re-affirmed Tesla’s long-term strategy while maintaining that Tesla would remain lean by producing the new lineup on existing manufacturing lines, assuaging fears of spiraling costs. Critical to note that it is not just Tesla which struggled in Q1. BYD also reported that its profits fell 47% YoY. Vehicle sales also slowed QoQ. It is the wider industry that is experiencing a slowdown. Unfortunately for Tesla, margin compression is more concerning for it compared to its Chinese competitors. Particularly as Chinese manufacturers are able to keep costs lower with help from government subsidies. Not only does the Chinese government offer direct subsidies to manufacturers, it also offers subsidies for EV buyers in China which has led to a boom in EV sales, which has benefited Chinese EV manufacturers. Economic slowdown from high interest rates and a domestic slowdown in China may keep EV sales subdued for some time. In which case, Tesla would be forced to continue with its price cuts which would continue to pressure margins. TESLA'S FINANCES STRAINED UNTIL AFFORDABLE MODEL LAUNCH With recent positive news, Tesla stock has recovered sharply. Yet, it remains one of the worst performing stocks in the S&P 500 YTD. Bearish clouds persist for Tesla as margin compression continues due to competitive price cuts by Tesla. Amid an industry-wide sales slowdown, Tesla may be forced to continue with its strategy to offer price discounts on its cars, keeping its margins pressured. Moreover, Tesla continues to face pressure from low-cost Chinese EVs until it can launch its own low cost models. While, Tesla’s new models are expected sooner than expected, they are still several quarters away. In the meantime, fundamental factors are likely to continue impacting Tesla’s profitability and subsequently its stock.
NASDAQ:TSLA
by mintdotfinance
22