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Brent Oil Getting Into A SqueezeLooking at the technical picture of EASYMARKETS:BRTUSD on our daily chart, we can see that the commodity is currently trading in a small range, roughly between the 81.83 and 83.98 levels. At the same, on the bigger picture, the price remains between two trendlines: a short-term upside support line taken from the lowest point of December 2023 and a downside resistance line drawn from the highest point of September 2023. This means that the pair is slowly getting into a squeeze. Although we might see some strong movement in-between the two trendlines, we would prefer to wait for a breakout first, before examining the next short-term directional move. A push through the upper side of the aforementioned range and a break of the previously discussed downside line would also place EASYMARKETS:BRTUSD above the 83.98 barrier, possibly attracting more buying interest. A forthcoming higher high would be confirmed, potentially clearing the way towards the 87.87 zone, marked by the highest point of November 2023. If the buying doesn't stop there, the next aim could be at 89.58, which is the inside swing low of 19th of October 2023. Alternatively, a price-drop below the lower side of the range and a break below the short-term upside line may set the stage for a move to lower areas. EASYMARKETS:BRTUSD could then fall to the 79.44 territory, a break of which might open the door for a move to the 76.64 level. That level marks the lowest point of February. Disclaimer: easyMarkets Account on TradingView allows you to combine easyMarkets industry leading conditions, regulated trading and tight fixed spreads with TradingView's powerful social network for traders, advanced charting and analytics. Access no slippage on limit orders, tight fixed spreads, negative balance protection, no hidden fees or commission, and seamless integration. Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. easyMarkets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
EASYMARKETS:BRTUSD
by DariusAnucauskas
Can Ripple Join The Other Crypto Boomers?Looking at XRPUSD on our daily chart, we can see that Ripple is barely moving higher, despite the recent crypto-mania. Major cryptos such as Bitcoin and Ethereum have accelerated rapidly to the upside at the end of February. This is something that Ripple is struggling to achieve. Most likely the demand for this crypto has faded away due to the ongoing lawsuits, which the SEC has against this tech company. That said, from the technical perspective, recently, the rate had popped above a medium-term downside resistance line drawn from the highest point of July 2023. At the time of writing, the crypto continues to balance above that trendline, however, in order to get comfortable with further advances, we would have to see XRPUSD remaining above that downside line. If that happens, we will then aim for higher areas, such as the 0.6241 hurdle, marked by the high of January 11th. If that hurdle is not able to withstand the bulls, its break may clear the way to the 0.6582 obstacle, or even the psychological 0.7000 zone, marked by the highest point of December 2023. Alternatively, a break of a short-term tentative upside support line taken from the low of January 31st, may attract more sellers into the game. XRP/USD could then travel to the 0.5182 hurdle, marked by the current lowest point of this week. If that hurdle doesn't stop the fall, the next possible target might be the current lowest point of this year, at 0.4815, or even the 0.46000 level. Disclaimer: easyMarkets Account on TradingView allows you to combine easyMarkets industry leading conditions, regulated trading and tight fixed spreads with TradingView's powerful social network for traders, advanced charting and analytics. Access no slippage on limit orders, tight fixed spreads, negative balance protection, no hidden fees or commission, and seamless integration. Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. easyMarkets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
EASYMARKETS:XRPUSD
by easyMarkets
1
CHFJPY Looking For An ExitFrom around the beginning of January, EASYMARKETS:CHFJPY continues to move sideways, while trading roughly between 169.30 and 171.50 levels. While the pair remains inside that range, the rate could continue moving sideways. That said, given that the prevailing trend is to the upside, there is a greater chance the breakout could occur through the upper side of that range. If EASYMARKETS:CHFJPY makes a move through the upper side of the range, this will confirm a forthcoming higher high, potentially attracting more buyers into the action. Given that the pair would enter uncharted territory, there are no historic resistance barriers available, hence why we will target hurdles such as 173.00 and 175.00. Alternatively, a drop below the lower side of the aforementioned range, at 169.30, could spook the remaining bulls from the field for a while. That's when EASYMARKETS:CHFJPY could travel to the 166.78 zone, marked by the current lowest point of this year. If that zone surrenders and breaks, this move will establish a new low for the year, possibly creating an opportunity to send the rate to the 165.65 level. That level marks the low of December 21st. Disclaimer: easyMarkets Account on TradingView allows you to combine easyMarkets industry leading conditions, regulated trading and tight fixed spreads with TradingView's powerful social network for traders, advanced charting and analytics. Access no slippage on limit orders, tight fixed spreads, negative balance protection, no hidden fees or commission, and seamless integration. Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. easyMarkets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
by easyMarkets
BITCOIN MOVE UP OR DOWN? WHAT'S NEXTThe current Bitcoin (BTC) price stands at 51,668, and there is an attempt to surpass the resistance at 51,800. If successful, BTC is expected to climb to 52,500, with the subsequent target being 53,200. Conversely, a failure to breach the 51,800 resistance and a drop below 51,400 could trigger a sell-off. In this scenario, the first sell target is set at 50,600, followed by a potential decline to 49,000 if market conditions do not support sustained levels. It is crucial to closely observe the market for any indications of a breakout or a change in established patterns.
Short
by sheikhhamza306
4
Gold Price After BREAKING $2030 Gold Price Analysis for the Week of 26/2 - 1/3/2024 • Gold price is expected to end the week positively due to decreasing US Treasury bond yields and lack of significant news. • The XAU/USD is currently trading at $2,038, showing a 0.70% increase. • Gold prices unexpectedly increased last week, breaking through the $2030 range and continuing to trade above it. • Based on technical analysis, NOVA identifies key resistance at $2050 and support at $2030, $2016, and $2000.
OANDA:XAUUSDLong
by Doolz-Lebanese
1
Will the downside line provide strong resistance for GOLD?Looking at the technical picture of EASYMARKETS:XAUUSD on our 4-hour chart, we can see that after a brief visit of the area below the psychological $2000 mark, the commodity is now struggling to find it's next near-term direction. This is because it had approached a short-term downside resistance line drawn from the highest point of December. In order to continue moving higher, a break of that downside line is required. Otherwise, the recent move higher might be seen as a temporary correction before another possible leg of selling. If the aforementioned downside line continues to provide strong resistance, EASYMARKETS:XAUUSD could drift back down again. We will get even more excited with examining lower areas if the price falls below the 2024 territory. At the same time, EASYMARKETS:XAUUSD could fall below all our EMAs on the 4-hour chart, increasing the chances of further declines, as more sellers may join in. We will then aim for the 2015 obstacle, or even the 1996 zone. That zone is marked by the inside swing high of February 14th and the low of February 16th. Alternatively, a break of the previously discussed downside line and a push somewhere above the 2039 barrier, marked near the highs of February 6th and 8th, could signal a change in the direction of the current short-term trend for EASYMARKETS:XAUUSD , potentially inviting more buyers into the field. That's when we will start aiming for the next possible resistance area between the 2064 and 2065 levels, which acted as a strong resistance area from the 5th of January. Disclaimer: easyMarkets Account on TradingView allows you to combine easyMarkets industry leading conditions, regulated trading and tight fixed spreads with TradingView's powerful social network for traders, advanced charting and analytics. Access no slippage on limit orders, tight fixed spreads, negative balance protection, no hidden fees or commission, and seamless integration. Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. easyMarkets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
EASYMARKETS:XAUUSD
by easyMarkets
It Only Took 8 Years. Is GBPJPY Ready For A Higher High?After a strong reversal and a confirmation of a higher low at the end of last week, EASYMARKETS:GBPJPY made its way back to its key resistance area, at around 188.90. This barrier continues to provide strong resistance from the end of November 2023. Also, back in November 2015, the pair struggled to overcome that hurdle, resulting in a prolonged sell-off. It only took 8 years to get back to that area again. Although there is an indication that more upside could follow, we prefer to wait for a breakout first. Additionally, this week we get the British unemployment numbers, together with the CPIs, preliminary GDP and retail sales figures. This data could create more volatility for GBP. If EASYMARKETS:GBPJPY ends up pushing strongly above the 188.90 territory, this will confirm a forthcoming higher high, possibly clearing the way to some higher areas. We will then target the 192.00 zone, which is near the inside swing low of August 7th, 2015. However, if that area is no match for the bulls, our next target could be somewhere near the 196.00 level. This is near the highest point of 2015. Alternatively, to consider lower zones again, a break below the 186.16 hurdle would be required. Recently, it acted as a strong support, meaning that its break may attract a few more bears into the field. We will then target the next potential support area, roughly between the 182.20 and 182.76 levels, which mark the inside swing high of December 27th and the low of January 9th respectively. If EASYMARKETS:GBPJPY continues to slide, our next aim is the 178.60 hurdle, which is near the current lowest point of this year. Disclaimer: easyMarkets Account on TradingView allows you to combine easyMarkets industry leading conditions, regulated trading and tight fixed spreads with TradingView's powerful social network for traders, advanced charting and analytics. Access no slippage on limit orders, tight fixed spreads, negative balance protection, no hidden fees or commission, and seamless integration. Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. easyMarkets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
by easyMarkets
Ripple can break resistance level, make retest and continue growHello traders, I want share with you my opinion about Ripple. Observing the chart, we can see that the price a not long time ago started to trades in an upward channel, where it first declined to the support line and then continued to move up in the channel. XRP reached a resistance level, which coincided with the seller zone and soon broke it, after which the price made little correction and later rose to the resistance line of the upward channel. Next, the price turned around and made a strong downward impulse to support line of the triangle, thereby exiting from the channel and breaking two levels - 0.5265 and 0.5010. But soon, Ripple turned around again and in a short time rose back to the resistance line, breaking the 0.5010 support level, which coincided with the buyer zone. Then it made a correction to this level and some time traded near, after which the price rebounded and made impulse up to the resistance level, thereby exiting from the triangle. Now Ripple trades near the 0.5265 level and I think that price can correct a little and then rise to the resistance level, and try to break it. After breaks, Ripple will make retest and continue to move up. For this case, I set two targets, the first target at the 0.5265 resistance level, and the second - at the 0.5365 level. Please share this idea with your friends and click Boost 🚀
Long
by LegionQ8
3
Aroon Indicator for GBPEUR shows an upward move is likelyGBPEUR's Aroon Indicator triggered a bullish signal on February 02, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 258 similar instances where the Aroon Indicator showed a similar pattern. In 82 of the 258 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at 32%. Price Prediction Chart Technical Analysis (Indicators) Bullish Trend Analysis The Momentum Indicator moved above the 0 level on January 17, 2024. You may want to consider a long position or call options on GBPEUR as a result. In 31 of 118 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 26%. Following a +0.26% 3-day Advance, the price is estimated to grow further. Considering data from situations where GBPEUR advanced for three days, in 48 of 260 cases, the price rose further within the following month. The odds of a continued upward trend are 18%.
Long
by Serhii_Bond
'GBPJPY' Big Profit So , as we can see that now every time GBPJPY breaks its high it falls 8000 pips somewhere which is marked in it chart now what you guys have to do for the trade is that wait for GBPJPY to break its latest high and then go up for at least 1% then you have to see for LH LL and then enter the trade and after the new high the market will fall and a high chance that it will fall for 8000 pips or more than that because of the interest rate decision and we all know that banks don't buy at tops but they sell it on top and buy at bottom so guys be with them and win. If there is any doubt or advice the comment and if you do like my idea , trade or plan then give it a boost and try to trade this plan and do try this on your chart too you will understand the move and the trade I planned. Analysis on - 1D time frame PRO TIP - For people who are stuck in GBPJPY shot i have a tip for you guys that you guys have to keep and eye on Japan interest rates because it's the factor which is driving the price of GBPJPY and try to get a buy when market falls again for 8000 or 9000 pips and try to hedge you ACC and then whenever market breaks the new highs then you guys have to take a small risk and open a trade at the new top after seeing the LH LL and cut the buy you guys took at the bottom which will help you recover your ACC
Short
by siddharth_thakur
Big Week For DXY. Short-Term ReviewThis week will be a major one for the US dollar index, as the amount of economic data released from the US might raise volatility of the instrument significantly and spark interest among traders. Apart from the JOLTS, ADP, Chicago PMI, ISM Manufacturing PMI and NFP, we also get the first one of this year’s Fed interest rate decisions on Wednesday. Currently, EASYMARKETS:USXUSD is ranging roughly between the 102.83 and 103.60 levels, meaning that traders and investors are waiting for one of the economic events to bring it out of that sideways action. While the rate stays inside that range, we will remain neutral. A break above the upper side of the range, at 103.60, may signal the rising appetite of the bulls, as a forthcoming higher high would be confirmed. EASYMARKETS:USXUSD could then travel to the highest point in December, at 104.26. If that doesn’t stop the buyers, the next possible target might be 104.68, which is the low of November 6th. Alternatively, to consider lower areas, a drop below the lower side of the aforementioned range, at 102.83, which is also marked by the high of January 5th, would also place EASYMARKETS:USXUSD below the 200 EMA on our four-hour chart. Such a move could temporarily spook the bulls from the field, allowing the bears to take control. This may open the door for the rate to slide all the way to the 101.62 territory. That territory is marked near the lows of December 15th and Janay 5th. Disclaimer: easyMarkets Account on TradingView allows you to combine easyMarkets industry leading conditions, regulated trading and tight fixed spreads with TradingView's powerful social network for traders, advanced charting and analytics. Access no slippage on limit orders, tight fixed spreads, negative balance protection, no hidden fees or commission, and seamless integration. Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. easyMarkets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
EASYMARKETS:USXUSD
by easyMarkets
Is Brent Oil Ready To Go For A Higher High? Looking at the short-term technical picture of EASYMARKETS:BRTUSD on our 4-hour chart, we can see that the price is approaching a key resistance area, around the 81.50 hurdle, which is marked near the highest point of December 2023. At the same time, the price remains well above a short-term upside support line drawn from the lowest point of December. Although everything is pointing towards a move higher in the near term, we would still prefer to wait for a break above that 81.50 zone, in order to get comfortable with examining higher areas. If that break happens, this will confirm a forthcoming higher high, potentially attracting even more bulls into the field. This could set the stage for EASYMARKETS:BRTUSD to move towards its next key resistance barrier, at around 84.60. That barrier marks the high of November 30th. That level also acted as a good area of support on 1st, 2nd and 3rd of November. Alternatively, to consider lower areas, a break of the aforementioned upside line would be needed. Additionally, a price-drop below the 77.82 hurdle, marked by the current lowest point of this week, could open the gateway for more bears to come through. EASYMARKETS:BRTUSD may then slide to the 76.55 obstacle, a break of which might clear the path towards the 75.26 level, which is the low of January 8th. Disclaimer: easyMarkets Account on TradingView allows you to combine easyMarkets industry leading conditions, regulated trading and tight fixed spreads with TradingView's powerful social network for traders, advanced charting and analytics. Access no slippage on limit orders, tight fixed spreads, negative balance protection, no hidden fees or commission, and seamless integration. Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. easyMarkets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
EASYMARKETS:BRTUSD
by easyMarkets
Btc confirm analysis read the caption Btc The technical picture now is more bearish as the decline from the 20-month high reached two weeks ago has continued, with the price trading above the big round number at $40,000 and breaking above some resistance levels which have now likely flipped to become resistance. Despite this bearishness, over the past couple of days the price has firmed up and established a couple of higher lows and support levels. However, the price chart below shows that the price is well within a bearish price channel, although the lack of symmetry in the channel suggests that it may not be very reliable. Nevertheless, there is a confluence of the upper trend line of this channel with a zone of resistance stretching from $40,423 to $40,667. This looks likely to be a great place to enter a short trade if we get a bearish reversal rejecting that area.
BITSTAMP:BTCUSDLong
by Mrsam36
Eurusd expected move read the caption Eurusd relatively volatile after the latest flash manufacturing and services PMI numbers from the US and Europe. It initially jumped to a high of 1.08980 and then pulled back as traders wait for the upcoming ECB decision and US economic data. The latest numbers by S&P Global showed that European manufacturing sector continued to contract in January as companies complained about inflation and supply chain issues. In Europe, the manufacturing PMI rose to 46.5, better than the expected 44.7. Despite the improvement, it remained below 51, meaning that the contraction phase continued.
Long
by Mrsam36
Is Dogecoin Coiling Up And Preparing For A Move?Looking at the technical picture of EASYMARKETS:DOGUSD on our daily chart, we can see that the crypto continues to slide, after peaking in the beginning of December. It is now trading below a short-term downside resistance line taken from the high of December 11th. That said, the rate is currently finding support just slightly above the 200-day EMA and above a short-term upside line drawn from the low of October 19th. This means that the EASYMARKETS:DOGUSD might be coiling up and getting into a squeeze. We would prefer to wait for a breakout through one of those given trendlines first, before examining the next directional move. In order to consider a decline in the near term, a break below the aforementioned upside line, a drop below the 200-day EMA and at the same time a fall somewhere below the 0.077 hurdle would be needed. This way the bulls could get spooked from the arena for a bit, allowing more bears to join in. EASYMARKETS:DOGUSD may then travel to the current lowest point of January, at 0.073. If the selling doesn’t stop there, we might then aim for the 0.070 territory, or even the 0.065 zone, marked near the lowest point of November 2023. Alternatively, a break of the previously discussed downside line could attract more buying interest, possibly sending EASYMARKETS:DOGUSD to the high of last week, at 0.088. If the bears are still asleep, this might allow the buyers to continue applying pressure, possibly sending the rate to the 0.095 hurdle, or the 0.099 level, marked by the high of December 15th. Disclaimer: easyMarkets Account on TradingView allows you to combine easyMarkets industry leading conditions, regulated trading and tight fixed spreads with TradingView's powerful social network for traders, advanced charting and analytics. Access no slippage on limit orders, tight fixed spreads, negative balance protection, no hidden fees or commission, and seamless integration. Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. easyMarkets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
EASYMARKETS:DOGUSD
by easyMarkets
2
Navigating the Growth Trajectory of On Holdings, Cloud or bust?Navigating the Growth Trajectory of On Holdings, a Rising Star in Athletic Footwear Support Level: $23.86 Current Price: $27.70 Resistance Zone: $28.53 - $31.95 Target 1: $37.56 Resistance Level 1: $43.32 Resistance Level 2:46.27 Target 1 (Long Term): $50.94 Target 2 (Long Term): $71.96 On Holdings has rapidly become a market leader with its revolutionary On-Cloud running shoes, capturing global attention and propelling the company's valuation to an impressive 7.8 billion Swiss francs. The strategic focus on marketing and brand development has positioned On as a force to be reckoned with in the athletic footwear industry. The company's valuation metrics reveal a steep but justified premium: 6.4 times revenue, 139 times earnings, or 47 times EBITDA. This premium is a testament to On's exceptional growth trajectory. In the last 12 months, the company achieved revenue of 1.2 billion, a net income of 58 million, and an adjusted EBITDA of 165 million. Technical Analysis and Growth Metrics: On's exceptional growth is underscored by a staggering 69% increase in revenue from 2021 to 2022, with a further projected growth of 39% in 2023. Positive product reviews and robust Google search data further validate this growth momentum. In comparison to industry giants like Nike and Lululemon, On boasts strong gross margins of 56%, setting it apart as a formidable competitor. (Nike is just 44% and lululemon is 55% However, rapid expansion comes at a cost, and On's negative cash flow is attributed to its aggressive expansion in China and the opening of new stores. With 371 million in cash on the balance sheet, there's a likelihood that the company may seek additional capital for sustained growth. Sustainability as a Key Differentiator: On Holdings not only focuses on growth but also emphasizes sustainability. The latest shoe, incorporating 44% recycled materials, showcases the company's commitment to environmental responsibility. This dual emphasis on growth and sustainability positions On as a forward-thinking brand in tune with modern consumer values. Investment Outlook: Despite the steep valuation and potential cash flow challenges, On's growth trajectory remains impressive. Assuming a 40% revenue growth this year, followed by 30% and 20% in subsequent years, On could reach revenues of 11.5 billion by 2033. Applying a conservative 10% net margin and a 20x multiple, the company's estimated worth would be around 24 billion, offering an investment return of approximately 11.9% per year. Although this may not seem great long term, the short-term growth is too good to pass up. In conclusion, On Holdings presents a cautiously bullish investment opportunity, given its remarkable growth and market dynamics. However, it's essential to recognize the speculative nature of this assessment, and investors should conduct thorough due diligence before making any investment decisions. As On continues to blend innovation, sustainability, and the Athlete Spirit, it stands poised to redefine the future of athletic footwear and potentially deliver compelling returns to investors.
NYSE:ONONLong
by Helios_Capital_Investment
1