FTSE 100 Technical Outlook
This week's FTSE price action illustrates traders' sensitivity to interest rate expectations on both sides of the Atlantic.
On Tuesday, the FTSE experienced a post-bank holiday rebound, driven by weaker U.S. job numbers that were perceived to alleviate pressure on the Fed to raise interest rates further. Notably, Tuesday's rally...
Is Nvidia Finally Topping Out?
Nvidia, the chip manufacturer, has unquestionably been the standout stock of the year, driven by the increasing demand for its 'supercomputer' chips that are playing a key role in the AI revolution.
The company's shares have experienced a remarkable uptrend, surging by an impressive 227% year-to-date. However, we are starting to...
Welcome to Part 2 of our 7-part Power Patterns series. In this series, we'll be equipping you with the skills to trade some of the most powerful price patterns which occur on any timeframe in every market.
This week’s pattern, the ascending triangle can often precede fast and powerful breakouts. A strong understanding of this pattern is essential for any trader...
EUR/USD Breaks Support as Bear Channel Continues
EUR/USD has been carving out a series of lower swing highs and lower swing lows on the daily candle chart (below) – creating a bearish descending channel.
Last Friday’s better than expected nonfarm payrolls has seen a resumption of U.S. dollar strength and caused EUR/USD to move lower from the top of the...
Overview
Gold is currently tracking higher within a small ascending channel – fuelled by the anticipation that the Federal Reserve will halt its interest rate hikes. This expectation is rooted in a series of underwhelming U.S. economic indicators, suggesting constrained potential for additional rate hikes.
Nevertheless, the unexpectedly robust nonfarm payroll...
FTSE 100 Technical Outlook
This week's FTSE price action illustrates traders' sensitivity to interest rate expectations on both sides of the Atlantic.
On Tuesday, the FTSE experienced a post-bank holiday rebound, driven by weaker U.S. job numbers that were perceived to alleviate pressure on the Fed to raise interest rates further. Notably, Tuesday's rally...
NZD/USD forms bearish pin-bar at key resistance
Yesterday’s price action saw NZD/USD form a bearish pin-bar reversal pattern at a key area of resistance. Let’s look at the quality of this sell signal…
Earlier this week, the U.S. dollar had weakened across the board after August’s ADP employment report revealed lower job creation than expected, and the second...
Welcome to our Power Patterns series in which we teach you how to trade some of the most powerful price patterns which occur on any timeframe in every market.
This week’s pattern, the fakeout is beautifully simple and has the power to be highly effective. It has stood the test of time and should be a key part of any price action traders arsenal.
We’ll teach...
What is RSI?
The Relative Strength Index (RSI) is a widely used indicator used by traders in technical analysis that evaluates the strength of a financial instrument’s price movement over a given period. It measures the speed and change of price fluctuation on a scale of 0 to 100, providing insights into overbought or oversold conditions, as well as potential...
What is scalping?
Scalp trading, also known as scalping, is a popular trading strategy characterised by relatively short time periods between the opening and closing of a trade.
Scalping is the shortest-term style of day trading that specialises in profiting from small changes in the price of assets. Its name derives from the way its goals are achieved – by...
Causes of overconfidence bias
In order to define overconfidence bias, it is important to understand some of the causes. These could include:
Doubt avoidance. Very often, people don’t like moments of ambiguity or doubt. Overconfidence could work as a solution, with the overconfident person feeling confident in their abilities to feel sure, even in a situation...
Yesterday, spot gold in the US session initially declined to the $1924 level but later stabilized and witnessed a strong rebound. The market experienced a breakthrough and touched the $1950 mark, ultimately closing at a strong $1960. The daily candle indicated a bottoming out and a subsequent upward movement. Although there was a temporary dip below the $1930...
Swing trading refers to the medium-term trading strategy that involves taking a position in a security for a few days to a few weeks, aiming to profit from price swings. Swing trading strategies employ fundamental or technical analysis to determine whether a particular security could go up or down in price soon.
Fundamental analysis for swing trading...
What is trend trading?
Trend trading or trend following is a trading strategy that involves identifying the direction of a prevailing trend in the financial markets and then buying or selling assets following that trend.
Trend traders tend to use technical analysis tools, such as moving averages (MA), trend lines, and momentum indicators, to determine trends in...
Watch out for USD/JPY as the BOJ's commitment to continue its ultra-loose monetary policy last week weighs on the Yen, all whilst the USD is finding renewed support as markets reprice expectations about year-end rates after the RBA renewed hiking overnight. Markets are now pricing in 22 bps of cuts by December, down from 45bps last week.
USD/JPY has bounced off...
The recent gains in precious metals, most notably gold but also silver, were backed by beliefs that a slowing economy would give way to the end of rate hikes by the Fed, and even possibly a few cuts before year-end. The economic data from December backed this view, which led investors to believe that the US economy was struggling, as CPI, PPI, retail sales, and...
Since early November, when China initially hinted at lifting statewide Covid restrictions, a basket tracking assets linked to the Chinese reopening story has surged by 22%.
In the last 11 weeks, the China reopening basket, which is equally weighted with copper , Korean won , Australian dollar , and the Hang Seng index , has outperformed a global stock market...
Oil WTI failed to break over the 50-day moving average during the session on January 3, and sellers returned after the price topped $80 per barrel.
This resulted in a rapid drop to $73/bbl, making it an interesting area to assess the strength of buyers on dips once again. Remember that the US is actively purchasing crude oil at 67-72 dollars per barrel range in...
