SSE - So Simple & Easy - BUY @£1,766REASONS TO BE BULLISH
Technical - Recently broke all-time high from 2007 - 15 yes FIFTEEN years ago!
Technical - Crossed the 50 MA some weeks back and just reclaimed the top of the purple channel. Holding there at support. A great time to reload.
Technical - 50, 100 and 200 MAs all the right way around now, after crossing back in October 2020.
Technical - Back in 2019, we had a double-threshold break. Crossing the 50 MA and entering the RSI bull zone on the same candle - my favourite type of entry. it has already back-tested that move.
Fundamental - Providing a dividend of 4.6% in a stagflationary environment, SSE is not to be sniffed at. 29 years of consistent dividends too!
Fundamental - Furthermore, demand from UK households is not receding from here. Same for sustainable energy & ESG investment.
Fundamental - Price to earnings is reasonable at ~7.6, unlike many other companies on the market.
Fundamental - SSE's standard mix has 55% renewables, with 40% from natural gas. The average UK provider offers 40% renewable, 38% gas and 16% nuclear. They're one of the best in a bad worldwide bunch.
Targets - Initial target would be a 200% move to £3,300. Should the energy really be 'cooking on gas', we may see it reach the £5-10k top channel (in green) after the coming 5 years.
Targets - Any pullback to the 50 EMA is to be bought (~£1,475 and rising).
WHAT COULD BE BEARISH
Fundamental - Sold off on news of a potential windfall tax on oil & gas producers. As of today, I would rate the chances of that passing or affecting SSE as unlikely, despite the political pressure. Even if implemented, it is perhaps more likely to stunt BP and Shell's progress than a "greener" company like SSE.
Fundamental - Businesses like SSE are needed to support households and also shift to a greener future - being one of the biggest investors in green energy in the country. Unless those in charge wish to undo all their promises in recent years, I'd rate the chances of this impacting SSE as low.
Technical - Down nearly 8% for the day and with other more risky assets selling-off, SSE may still stutter (even if downside limited from here).
Technical - Stop loss would be £1,285 which would create a new low and a 27% decline
SUMMARY
Overall, this seems like one of the biggest no-brainer investments out there. Relatively low-risk, relatively high-reward.
Dividend - Check. ESG - Check. Inflation-proof - Check. Value - Check. New ATH - Check.
Absolutely long-term bullish on SSE, although I expect a a few weeks of sideways action to settle on top of the prior all-time high to call it support. Today SSE is a solid purchase and I expect will remain a good time to begin a position, inspite of the market & political risks identified above. Let's keep an eye on this one in the years ahead. Thanks for reading!
Green
Copper Falls - An OpportunityIn May 2021, the nearby COMEX copper futures contract reached a record $4.8985 per pound. After a correction to just below the $4 level in August 2021, the red nonferrous metal made higher lows and higher highs, leading to another all-time peak at $5.01 per pound in early March 2022.
Range trading gives way to a downside break
Goldman Sachs believes higher highs are on the horizon
Copper is a green metal with the demand outstripping supplies
It will take a decade to bring new production online
Buying copper scale-down on the dip could be the optimal approach
The new record high on March 7 led to a period of consolidation where copper traded between $4.60 and $4.60 per pound. On April 25, the leader of the nonferrous metals fell below the bottom end of its trading range to the $4.40 level. The decline in copper could be the perfect opportunity to load up on the metal that Goldman Sachs calls “the new crude oil” because of its requirements for green energy technology.
Range trading gives way to a downside break
On May 7, the continuous COMEX copper futures reached a new all-time high at over $5 per pound.
The chart highlights the rally that took COMEX copper futures above the May 2021 $4.8985 peak to $5.01 per pound in early March. Copper rallied on the back of Russia’s invasion of Ukraine and the highest inflation readings in over four decades.
The chart illustrates July copper futures traded in a range from $4.4710 to $4.7660 per pound from mid-March through April 22. On April 25, the price dropped below the bottom of the range on the back of the prospects for higher US interest rates and the rising value of the US dollar against other world reserve currencies.
Higher rates increase the cost of carrying raw material inventories, and a strong dollar tends to be bearish for commodity prices as they rise in other currency terms. However, 2022 is anything but an ordinary year as inflation will keep real interest rates in negative territory, and all currencies, including the US dollar, are losing purchasing power.
July copper futures traded to the most recent low on May 2 at $4.2040 per pound, the lowest price in 2022, and since December 15, 2021, when it found a bottom at $4.1105. The short-term technical trend is bearish, but the longer-term path of least resistance remains bullish. Moreover, supply and demand fundamentals tell us that the current dip in the nonferrous metal is a buying opportunity.
Goldman Sachs believes higher highs are on the horizon
In 2021, as copper was on its way to the May $4.8985 high, Goldman Sachs’ analysts called copper the “new oil” because of its role in green energy technology. Electric vehicles, wind turbines, and other alternative energy initiatives require ever-increasing copper supplies. Goldman pointed out that decarbonization does not occur without copper.
The leading financial firm expects copper prices to rise to $15,000 per ton by 2025. At that level, COMEX futures will eclipse $6.80 per pound, nearly 60% above last week’s closing level at $4.2670. Other analysts expect even higher copper prices. Meanwhile, markets tend to move to prices on the up and downside that defy logic and reasonable and rational analysis. It is impossible to identify tops for bottoms in significant bull and bear market periods. The latest example was crude oil, which fell to below negative $40 per barrel in April 2020. No analyst saw that price coming.
Copper is a green metal with the demand outstripping supplies
Copper demand is set to rise over the coming years, but supplies to meet requirements will be a challenge for at least three reasons:
Addressing climate change - ironically, copper demand will rise because of green initiatives, but net-zero carbon emission pledges by mining companies will weigh on production. Copper production is energy-intensive, requiring hydrocarbons.
Rising production costs - Inflationary pressures have caused labor, financing, energy, equipment, and all mining input costs to rise, putting upward pressure on prices and downward pressure on output.
Supply chain and political issues - Global supply chain bottlenecks continue to cause problems in transporting all commodities from production sites to consumers. Moreover, the geopolitical landscape is creating price distortions. The war in Ukraine, sanctions on Russia, Russian retaliation, and the “no-limits” support between China and Russia create an ideological bifurcation with the US and Europe. China is the world’s dominant copper consumer. The tensions distort all raw material prices, and copper is no exception.
The prospects for a growing deficit in the copper market are high in 2022.
The five-year trend in LME copper warehouse inventories has made lower highs and lower lows, indicating that robust demand is outpacing supplies.
It will take a decade to bring new production online
The cure for high prices in commodities is always the high price level as producers step up output to take advantage and earn more profits. In copper, it takes eight to ten years to bring a new mine into production, meaning the high prices in 2022 will only yield new and higher output in 2030. Moreover, the leading mining companies are scouring the world for new proven and probable reserves. BHP, a leading mining company, is even exploring the potential for a copper project in the challenging political climate of the Democratic Republic of the Congo. BHP calls the area a “tougher jurisdiction” because of the DRC’s long history of corruption and political instability.
The bottom line is production will struggle to keep up with copper’s growing demand.
Buying copper scale-down on the dip could be the optimal approach- A similar pattern to the May through August price behavior
The latest price action in the copper futures market looks very similar to the move from the May 2021 high to the August 2021 bottom.
The chart shows the decline from $4.8985 in May 2021 to a low of $3.98 in August 2021, an 18.8% correction in five months. Copper futures only traded below the $4 level for one day in August 2021.
The most recent correction took the red metal from $5.01 to $4.1900 per pound or 16.4%. If copper holds above the $3.98 level, it will make another in a long series of higher lows since the March 2020 bottom at just over $2 per pound.
I favor buying copper on a scale-down basis as supply and demand fundamentals and the long-term technical trend remain bullish. The short-term trend is bearish, but that could be an opportunity for those looking to accumulate the nonferrous metal that is a critical component in climate change initiatives. I expect higher highs in copper over the coming years.
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Trading advice given in this communication, if any, is based on information taken from trades and statistical services and other sources that we believe are reliable. The author does not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects the author’s good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice the author provides will result in profitable trades. There is risk of loss in all futures and options trading. Any investment involves substantial risks, including, but not limited to, pricing volatility , inadequate liquidity, and the potential complete loss of principal. This article does not in any way constitute an offer or solicitation of an offer to buy or sell any investment, security, or commodity discussed herein, or any security in any jurisdiction in which such an offer would be unlawful under the securities laws of such jurisdiction.
GMT Green Metaverse Token = Green Candles to 1$ & to the MOON!GMT (Green Metaverse Token) took a fast growing power from his beginning!
The project has a big potential! I guess we will see a very huge growing in price and market cap!
Our nearest future target is 1$
After reaching that target the GMT could continue it's parabolic move to the MOON!
I'm very bullish about it. What are your thoughts, please share in the comments!
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Please note that this is not a financial advice. Just my personal idea. Do your own research.
“Misery within, Chaos through out.” The God of ChaosThree Steps to change the game!
As I showed in the chart we have three targets and Ichi proves that ONE BIG MOVEMENT CAN START .
By considering Fundamental news it seems to me we have good potential for good positive movement BUT try to analyze by yourself and play this game. :)
TODAY and TOMORROW are really important for this movement.
REMEMBER:
“In preparing for battle I have always found that plans are useless, but planning is indispensable .”
― Dwight D. Eisenhower
BITCOIN... WERE ARE YOU GOING ?The Market was all red this afternoon but bitcoin held up his position by staying green today - I am still believing in the head and shoulder scenario I have shown before.
Here on the chart we can see:
- a small support that keeps bitcoin up
- lower day highs for the past week.
I think that bitcoin is for now not ready to get out of this zone, but if the support stays, we will (hopefully) see bitcoin shoot up to complete his second shoulder and then undergo a huge correction.
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TSLA BreakoutTesla had a breakout of its technical pattern today. Monday if news doesn’t mess it up I believe next week TSLA has a good chance at reaching $1250, a resistance point it could not surpass last time it contested it. Overall seems bullish. Love to hear other opinions as I’m trying to learn myself ( 15 yo )
Investing Green: Global X CleanTech ETFIn this post, I'll be introducing a way you can gain expose yourself to green investments through Global X CleanTech ETF ($CTEC).
Disclaimer: This is not financial advice. This is for educational and entertainment purposes only. I am not responsible for the profits or loss generated from your investments. Trade and invest at your own risk.
The Potential of Green Investing
- President Joe Biden is expected to unveil a new $1.75 trillion spending framework on Thursday, which will include $555 billion for clean energy investments.
- The spending targets emissions-reducing technologies across buildings, transportation, industry, electricity and agriculture.
- The dollars earmarked for climate spending focus on incentives rather than punishments.
- The initiatives will start cutting pollution now, with more than one gigaton of greenhouse gas emissions reduced in 2030.
- This will set the U.S. on a path to reduce emissions by 50% to 52% below 2005′s levels by 2030.
- The plan includes a 10-year expansion of tax credits for utility-scale and residential clean energy, transmission, storage, electric vehicles and clean energy manufacturing.
- More than $100 billion is set aside for resilience investments as extreme weather events, including wildfires fueled by climate change, batter the U.S.
Framework Breakdown
- $320 billion: Clean energy tax credits
- $105 billion: Resilience investments
- $110 billion: Investments and incentives for clean energy technology, manufacturing and supply chains
- $20 billion: Clean energy procurement
Information about the ETF
- The Global X CleanTech ETF (CTEC) seeks to invest in companies that stand to benefit from the increased adoption of technologies that inhibit or reduce negative environmental impacts.
- This includes companies involved in renewable energy production, energy storage, smart grid implementation, residential/commercial energy efficiency, and/or the production and provision of pollution-reducing products and solutions.
- Inception Date: Oct 27, 2020
- Total Expense Ratio: 0.5%
- Net Assets: $187.38B
- Net Asset Value (NAV): $22.23
Top 10 Holdings
1. PLUG POWER INC (PLUG) - 8.02%
2. ENPHASE ENERGY INC (ENPH) - 7.60%
3. VESTAS WIND SYSTEMS A/S (VWS DC) - 5.71%
4. SIEMENS GAMESA R (SGRE SM) - 5.24%
5. SAMSUNG SDI CO LTD (006400 KS) - 5.19%
6. SOLAREDGE TECHNO (SEDG) - 5.10%
7. XINYI SOLAR HOLDINGS LTD (968 HK) - 4.89%
8. FIRST SOLAR INC (FLSR) - 4.80%
9. QUANTUMSCAPE CORP (QS) - 4.33%
10. JOHNSON MATTHEY PLC (JMAT LN) - 3.66%
Technical Analysis
- This ETF has undergone a long phase of accumulation between $16-21
- While it has broken out of the accumulation range, there are two main levels of resistance it needs to break; $23.3 and $29.6
- We could expect the ETF to test the now resistance-turned-support in the form of a pullback before moving up to create higher lows and higher highs
- Based on the fibonacci retracement level, we could consider the 1.618 a plausible long term target.
Conclusion
The US government is investing heavily in cleantech, and paving way for green companies to grow, and it's highly likely that other governments will begin to do the same across the world. Finding a specific winner for their cause might be difficult, but this ETF allows you to gain exposure to a variety of cleantech companies. While this ETF doesn't have a long track record, it's managed by a reputable company. Technically, we have broken out of the accumulation range, and yet the price is still close to the ETF's net asset value, providing high upside potential for the mid to long term.
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If you have any questions or comments, feel free to comment below! :)
Trading Chaos By Bill Williams | Part 3Hello, everyone!
Last time we considered the candlestick patterns by Bill Williams(BW). Today we are going to expand the novice trader tools for better understanding the market situation.
To define if the market price is going without obstacles BW use the Market Facilitation Index. It demonstrates how the tick volume can be the market driver. The calculation you can see on the pic.
Just calculated MFI for one bar is not useful for the analysis. We should compare it with the meaning of the previous period. Using this comparison, we can divide 4 profitunity windows.
1. GREEN
Current MFI is GREATER than previous one, current volume is GREATER than previous one too.
This is the breakout signal. It means that more and more traders execute trades in the direction of a bar trend. Your best decision here is to follow this impulse.
2. FAKE
Current MFI is GREATER than previous one, current volume is LESS than previous one too.
The price go in the trend direction without the volume support. This is the sign of possible correction. Here is the time when it is too easy to manipulate the market(especially actual on the Bitcoin market!)
3. FADE
Current MFI is LESS than previous one, current volume is LESS than previous one too.
This is the most valuable indicator. Squat bar usually appears on the end of trend. Here the nice opportunity to enter the market at the beginning of the new trend.
4. SQUAT
Current MFI is LESS than previous one, current volume is GEATER than previous one too.
The market has low volume and volatility. This is the time when the interest is decreasing, we can usually see it of the end of Elliott Wave 1, when the lack of buyers who want to buy with the high price. Here you should be ready for the big move.
Next time I will show some signals with the beginner’s level of Trading Chaos trading system.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions at the real market.
ET to make a Move to the Upside SoonThe midstream "stocks" typically move predictably with their payouts. Energy Transfer is no different and is moving to a strong upside as a payment is expected in October. There's also the considerable catalyst of its acquisition of Enable Midstream Partners which will expand $ET's already extensive pipeline coverage (~90,000 miles). Buying into $ET at its present valuation is nearly theft.
Hurry Up and Wait on SO***None of my ideas, this on included, are financial advise. Tread cautiously. Markets are know to enjoy punishing the un-wary.***
Previous Idea, Profit, and Short-term Movement
I've shared a couple ideas on Southern Company and thus far the stock movement has been very predictable; moving around earnings and payouts. Based on my previous idea (linked), I just made a nice profit on Feb 2022, $65 strike calls for SO. I think from here we'll move back to near fair value ($60-$61) over the next month or two. This is a good place to enter a short position. I don't like buying puts as risk is high but a covered call would be an acceptable position, in my view.
Catalyst for Change
My belief is this equity will move as it has for the past year-and-a-half until the Fed tapers bond purchases. I believe once a taper is announced there will be a flight to blue-chip/high capital asset companies (like SO and other utilities). This may manifest as an increase in price of SO stock that breaks its recently established trend. (for example, see price action from late 2018 to early 2020).
Lifetime Valuation
This should not be construed as a bearish flag on SO's stock, overall. This idea only shares my thoughts on the probable trajectory of the stock in the short term. My overall valuation on this company is very bullish; specifically given the considerable upside with their Vogtle nuclear project.
GM - The Tesla Crusher - EV Push - Valuation & Sales*rising rates environment will smash the Dogefathers Ponzi Pogs. Forward P/E is a NOGO from now on. *valuation & PROFITS NOW matter most.
I'd enter with a 50% stack. DCA if need be. I doubt you get a chance at anything meaningful. The chip play for EVs and others.
#checkmate STORYTELLERS
#investingnfts
Go Small Cap Gems!
UUUU Clean Green Energy PlayWIth all the hype about green energy, the only sustainable and reliable form of clean energy is nuclear (maybe hydro but thats another story). Nuclear Power plants have not been meddled with for about 40 years. Many of those which are being decommissioned (???). Solar and wind produce more toxic waste to the environment when compared to nuclear. Which nuclear waste goes into safe long term storage in water pools at the power plant or in a dry cask. This "used" up fuel can be reprocessed and used again. Spot price of uranium being at some low spot, the ability to buy and hold millions of pounds of uranium, and Sprott adding physical uranium to markets (SRUUF) is a big win for the long term bullish cycle coming into these uranium/energy plays.
Has the green hydrogen bubble pop?As long as NEL trades above the 11.645 NOK (0.702 Fib retracement from the bottom of the impulsive waves), higher prices must be expected, and potentially another set of impulsive waves. The yellow box is the range from 0.382 to 0.618 of Fibonacci. This range is the classical value area for potential new trades during corrections. If NEL broke the support, prepare for substantially lower prices.
This is my proposed short-term labeling for the current correction.
Possible SO Buying PointMomentum on the daily is moving favorably though the stock didn't hold the engulfing pattern. RSI corroborates the downward trend with most recent standing of "oversold" as it touches the 200 SMA. I'm looking at a bounce off the 200 SMA over the next couple weeks to hold the upward trajectory SO's held since May 2020.
If we can't hold the 200 SMA this week I'm looking for a downturn toward ~$57.00
I'll be looking to add to my position this week if things still look relatively strong Thursday.
BTC headed for a green Saturday?!Right now it looks like BTC may be making an upwards move to start its Saturday. This wave could see it move upwards to 31737 where it may attempt to breakout of the current triangle that is within. If it’s successful in the breakout efforts - based on the measurement of the triangle - we could see a move towards 32200.
XCHUSDT (30min) NEW PRICE TARGET FOR 7/14 @ $350Chia has found some sideways momentum after breaking out of an almost month long downtrend. Look for Chis to rise to the occasion as it is now being listed on multiple exchanges. Keep in mind Chia is only just a month old and has a ton of upward potential.