Predicting market prices has been a considerable area of research for many decades now. From momentum to seasonal trends, this article explores five schools of thought on how prices can be predicted in financial markets.
Momentum
In trading, momentum theory posits that assets trending up or down are likely to continue in the same direction. The core idea is...
According to Yahoo Finance, the third-quarter earnings season started well despite the uncertain macroeconomic environment.
Already, 32 companies in the S&P 500 have reported earnings, according to Bank of America Research's equity strategy group. Moreover:
→ actual earnings per share exceeded Wall Street expectations by an average of 9%;
→ EPS increased 1%...
Paradoxically, cryptocurrencies, which conceptually pursue decentralization goals, have become overly sensitive to regulatory news.
Surprising news from Cointelegraph that the SEC would approve an application for a spot Bitcoin ETF from BlackRock raised the price of the coin to USD 30,000.
The market’s positivity was added by the opinion of SkyBridge Capital...
The opening price on Friday was around 1,870, the closing price was around 1,930. The reason for the rapid growth of the XAU/USD quote is geopolitical tension. Israeli forces announced a ground operation in the Gaza Strip, which may be why before the weekend the markets were dominated by the forces of demand for gold as a defensive asset.
The Chinese Foreign...
Volatile markets can both be challenging and present multiple opportunities for traders. Harnessing the power of specific trading strategies, from the Bollinger Band Squeeze to the nuanced VWAP and RSI combination, can provide critical insights into potential price movements. But these aren’t trade secrets; rather powerful strategies for volatile markets that have...
EUR/GBP is rising and might climb above the 0.8665 resistance.
Important Takeaways for EUR/GBP Analysis Today
· EUR/GBP is rising and trading above the 0.8650 zone.
· There was a break above a major bearish trend line with resistance near 0.8635 on the hourly chart at FXOpen.
EUR/GBP Technical Analysis
On the hourly chart of EUR/GBP at FXOpen, the pair...
GBP/USD started a fresh decline from the 1.2335 resistance zone.
Important Takeaways for GBP/USD Analysis Today
· The British Pound is again declining and trading below the 1.2200 support.
· There was a break below a key bullish trend line with support near 1.2220 on the hourly chart of GBP/USD at FXOpen.
GBP/USD Technical Analysis
On the hourly chart of...
This week, Saudi energy minister Prince Abdulaziz bin Salman visited Moscow to discuss plans for oil production in the context of the Israeli-Palestinian conflict. The Russian president announced that Saudi Arabia and Russia's production cuts are "likely" to continue.
Meanwhile, Magid Shenouda, deputy chief executive of commodities trading giant Mercuria, told...
Yesterday, another indicator of inflation in the United States was published — the CPI (Consumer Price Index). Like the PPI (Producer Price Index), the values of which were published on Wednesday, the CPI index indicated that inflation in the US remains stable (actual = 3.7%, forecast = 3.6%, a month earlier = 3.7%, two months earlier = 3.2%), however, this time,...
Market volatility, characterised by rapid price fluctuations, presents both opportunities and challenges for traders. Understanding its causes, measuring it effectively, and employing strategies to capitalise on it can lead to better trading results. This article explores the essentials of market volatility, from its definition and measurement to strategies like...
Crude oil price saw swing moves and is now trading below the $83.70 resistance.
Important Takeaways for Oil Prices Analysis Today
· Crude oil prices failed to clear the $86.00 region and corrected gains.
· There is a connecting bearish trend line forming with resistance near $83.00 on the hourly chart of XTI/USD at FXOpen.
Oil Price Technical Analysis
On...
Gold price surged above the $1,848 resistance after the Israel-Hamas war escalated.
Important Takeaways for Gold Prices Analysis Today
· Gold price started a steady increase from the $1,810 zone against the US Dollar.
· A key rising channel is forming with support near $1,868 on the hourly chart of gold at FXOpen.
Gold Price Technical Analysis
On the...
In early October, the GBP/USD decline exceeded 10% from its summer high, which was very worrying. However, the weakening of the US dollar and changes in sentiment in the US government bond market allowed the pound to strengthen.
Important news about UK GDP was published this morning:
→ The Office for National Statistics estimates that real gross domestic product...
The rise in the price of the (considered a safe haven) asset was driven by:
→ escalation of geopolitical conflicts;
→ increasing US government debt and rising bond prices make gold a more attractive option for a defensive portfolio.
Also, according to Business Insider, global central banks are buying gold in an effort to diversify reserves away from the dollar.
...
As we wrote in our October 8 market analysis, the S&P 500 chart made bullish arguments, including:
→ the S&P 500 price has reached the lower boundary of the ascending channel (shown in blue);
→ RSI fell to its minimum in 12 months.
Technically, these factors were justified, because today, the S&P 500 has strengthened, the price is near the psychological level...
This morning, as the NZD/USD chart shows, one USD was worth 0.605 New Zealand dollar, for the first time since August 10.
The strengthening of NZD was facilitated by:
→ rumours that China is planning a major stimulus package to boost the economy amid the real estate crisis. And the Australian and New Zealand dollars, as one can see, are showing growth against...
USD/CHF declined and now trading near the 1.0450 support zone.
Important Takeaways for USD/CHF Analysis Today
· USD/CHF declined below the 0.9140 and 0.9080 support levels.
· There is a connecting bearish trend line forming with resistance near 0.9080 on the hourly chart at FXOpen.
USD/CHF Technical Analysis
On the hourly chart of USD/CHF at FXOpen, the...
