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CFD

Brent Crude Oil Short Idea Brent Crude Oil has reached the Key physiological level of 80.00. On Friday the price surpassed the 82.50 area however since then the price has been unable to break past the previous high. On the Daily and 1hr time frame, the RSI levels are in oversold areas which indicates a sell on a short-term bias sentiment. The initial target for this trade is located at 81.20 - followed by 79.62 if the downtrend continues. The stop-loss is located at 82.88.
TVC:UKOILShort
by Orion-Markets
3
Crude Oil (Bearish)As you see in the chart, price didn’t succeed to make a higher high in its last upside move and has been rejected and pushed to the downside by the red resistance zone. Moreover, a bearish reversal double top pattern has been created and the neckline is broken out. Currently, we are in a downtrend and price is fixed below the neckline and is dropping after retesting it. I expect a drop to 75.200 for now and If price breaks the support level at 75.180 and closes a candle below this level in 1H, we can expect more fall for Crude Oil towards 72.450 and 69.750 in a long-term period.
FX:USOILShort
by Mahtab_Tradia
22
GOOGLE Drops As you see in the 1H chart, after a strong uptrend, price has started to rest and bounce sideways. There are downside and upside moves in the sideway zone, and currently, the ascending trend line of the last upside move is broken out to the downside and price has started a sharp downtrend. I expect a drop on price with two targets: First to $2893 and in the case of a downside breakout on this level, the next target for GOOGLE is $2869 Are you into stocks? What is your outlook on GOOGLE? Feel free to share your ideas in the comments.
NASDAQ:GOOGLShort
by Mahtab_Tradia
10
Asset Classes - Part 1 and 2 - For beginnersAsset classes - Part 1 - Stocks, Bonds, Commodities and Currencies There are several types of asset classes which group together investments with similar characteristics. However, each asset class also has its own particular features that it does not share with other asset classes. Most common asset classes are: equities, fixed income, real estate, commodities and currencies. Correlation between different asset classes within the same industry is common. However, asset classes in unrelated fields show very little correlation. Each asset class possesses a different level of liquidity; most liquid asset classes are equities, fixed-income securities, and commodities. Sub-asset class Asset classes can be subdivided into sub-asset classes; for example, commodities can be subdivided into lumber, metals, oil, etc. Sub-asset classes can be further subdivided into separate groups which show common characteristics while showing characteristics of the broad group at the same time. For example, metals can be subdivided into precious metals and industrial metals. Each group can be then divided even further to efficiently distinct between separate features of asset type. For example, precious metals can be divided into gold, silver and platinum. Illustration 1.01 Illustration above shows a daily chart of continuous CFD on WTI oil. Price made a low of 33.67 USD on 2nd November 2020 and continued to rise until it reached a high of 85.39 USD on 25th October 2021. Correlation Some assets tend to show correlation. Such correlation can be positive or negative. Positive correlation means that two assets behave in a similar way. For example, when gold rises then mining stocks rise as well. Contrary to that, negative correlation describes such behavior in which assets move in the opposite direction to each other. For example, when USDEUR declines then WTI oil tends to rise. Illustration 1.02 Illustration above shows the daily graph of Exxon Mobil Corporation which belongs to the oil mining and exploration sector. It made a low of 31.11 USD on 29th October 2020 and then continued to rise until 1st November 2021 when it reached a high of 66.08 USD. Positive correlation can be observed between CFD on WTI oil shown in Illustration 1.01 and Exxon Mobil Corporation stock. Stocks Stocks, also called equities, are normally issued by an eminent (company, state, etc.) as shares which give right of ownership to their holder. These shares are then sold by eminent (to investors) with the purpose to raise capital. Stocks are predominantly traded on stock exchanges and they can be either common stocks or preferred stocks. Common stocks entitle a shareholder to vote at shareholders´ meetings and to receive dividends being paid by a company. Preferred stocks differ from common stocks in that they usually come with limited or no voting rights at all. Though, preferred stocks have higher claims to dividends and distribution of assets by a company. This means that in case of liquidation of a company preferred stockholders have priority over common stockholders. In addition to that, preferred stocks can pay higher dividends than common stocks and because of that they are good for building passive income based on dividend payments which can be monthly or quarterly. Bonds Bonds are simply loans made by an eminent (borrower) which can be state, corporation, or any other legal entity. Bonds are considered fixed-income instruments because they come with interest payments being paid out to an investor. Owner of a bond is called debtholder while the issuer of a bond is called a creditor. Bonds are tradable assets and they have maturity. In addition to that, bonds come with risk of default. Because of that, higher yielding bonds usually come with higher risk of default. Bonds are great investment vehicles for building passive income, however, they generally underperform in terms of yield when compared to stocks, commodities and indices. Bond yield is negatively correlated to bond's price. Commodities Commodities are basic goods (such as gold, lumber, oil etc.) that are used in commerce. They are usually refined or used for production of other goods. Commodities can be traded on market exchanges where they must meet specified minimum standards like quality, weight, type, etc. Commodities are great speculative and anti-inflationary investment vehicles. Illustration 1.03 Illustration 1.03 shows the daily chart of CFD on WTI oil. On 20th April 2020 due to the WTI oil crisis at Cushing, Oklahoma price plunged below negative 36 USD (-36 USD per barrel). Unfortunately, that is not depicted on the chart (chart depicts lowest value at 0.00 USD). Currencies Currency has the role of a medium of exchange for goods and services in almost all economies around the world. There are many different currencies worldwide, however, predominantly used currencies are U.S. dollar (USD), Euro (EUR), British pound (GBP), Yuan (CNY) Ruble (RUB), Yen (JPY). Relationships between currencies are highly intertwined making the currency market very complex and hard to predict. Central banks can influence currency rates through monetary policies such as interest rates and quantitative easing. Similarly, a government can impact currency rate by enacting fiscal policies. These policies can have an impact on spending, import, export, etc.; which will, in result, influence currency rate. In addition to all of that, some currencies exhibit positive or negative correlation with commodities such as gold, oil, etc. Illustration 1.04 Illustration above shows the daily graph of EURUSD. It is observable that EURUSD made lows in March 2020 and then continued to rise towards November 2020. Only a month later in April 2020 oil bottomed out and then started to rise in tandem with EURUSD (depicted in Illustration 1.03). Asset Classes - Part 2 - Cryptocurrencies, ETFs, CFDs Modern technology along with financial evolution brought rise of new asset classes such as cryptocurrencies, exchange traded funds (ETFs), contracts for difference (CFDs) and options. These new financial instruments represent alternative investment to stocks, bonds, commodities and currencies. Additionally, some features within these products can help an investor to diversify portfolio, trade short and use leverage with ease of a few mouse button clicks. Cryptocurrencies Cryptocurrency is simply digital currency. Most cryptocurrencies are based on blockchain technology which acts as a distributed ledger that is run by a large number of computers that comprise decentralized structure. Normally, cryptocurrencies are not issued by central authorities (however, central banks around the world currently work on digital form of fiat currencies). Cryptocurrencies are encrypted by cryptographic methods which makes them very difficult to counterfeit and double-spend. These assets are considered to be more volatile when compared to stocks, bonds, commodities and fiat currencies. Another defining feature that sets cryptocurrencies apart from other assets is that they are traded non-stop (24 hours a day, including weekends). Most popular cryptocurrencies are Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Ripple (XRP), Dogecoin (DOGE). Illustration 1.04 Picture above shows the monthly chart of BTCUSD (Bitcoin in USD). It is very easy to spot unbelievable growth of more than 862 000 % between August 2011 and November 2021. Exchange traded fund (ETF) Exchange traded fund is a type of security that is publicly traded on a stock market exchange and which tracks an index, stock, commodity, or other asset. Exchange traded funds can track either one asset or group of assets. This allows an ETF to be structured in such a way that it can reflect performance of a particular economic sector. Illustration 1.05 Illustration above shows the daily graph of JETS ETF which is an airline exchange traded fund. It has exposure to airline manufacturers, airline operators, airports and terminal services. Contract for difference (CFD) Contract for difference is exchange traded security that is cash-settled and which does not include delivery of goods. It simply pays the difference between the opening price and closing price. CFDs copy the price of other securities and they can be traded short, and also on margin. However, usually higher fees are associated with CFDs when compared to stocks, bonds, currencies and commodities. Illustration 1.06 Depiction above shows the monthly graph of CFD on USOIL. DISCLAIMER: This content serves solely educational purposes.
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BITSTAMP:BTCUSDEducation
by Tradersweekly
36
HK50 Returns To Bullish ChannelThe HK50 has managed to returned to the bottom of its bullish channel that was created on the 1hr/4hr time frame. This kind of price rejection on the downside is positive for the bulls, and the possibility for a continuation on the upside is very likely at this point. We are approaching the end of the year, and we are approaching Thanksgiving. Market participants tend to be more optimistic around these times of year, and with risk off sentiments dwindling, the possibility for the HK50 to create another high is very high. This kind of play would present itself to have a very high risk:reward ratio, and it is a play I am most certainly playing. Stop loss is below the bullish channel and target is at the last high.
HLong
by ExpandYourMind