Wave 3 and extension or corrective pattern of greater degree?Dear Friends,
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The first analysis is Litecoin
In the attachment, you will find my previous analysis of the same market, so you can compare and see the differences. All the details of my analysis are clearly labeled, making it easy for you to understand (although having a basic familiarity with the Elliott Wave Principle theory will help you understand the analytical idea more easily).
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Nasda100
Technical analysis update: Nasdaq 100 (27th January 2022)Yesterday after the FOMC press conference Nasdaq 100 (and other major indexes) surrendered most of its earlier gains. We continue to maintain a bearish stance on the general stock market as we think NQ1! is headed lower. Our view is supported by bearish fundamental and technical factors. Additionally, the current high volatility pushes odds in favor of more downside for the markets. We currently watch the upward moving channel on the hourly time frame. This formation presents an interesting trade setup with two alternatives. First alternative would involve placing a short trade entry below the lower bound of the upward moving channel. Stop-loss would be placed above the lower bound in order to limit loss potential. Second alternative would involve taking a long trade entry above the upper bound of the upward moving channel and placing stop-loss below it.
Illustration 1.01
Illustration above shows the daily chart of NQ1!. It also shows steepening of fan lines.
Technical analysis - daily time frame
RSI remains in the oversold territory. MACD and Stochastic are bearish. DM+ and DM- are bearish too. ADX continues to grow which suggests that the bearish trend continues to strengthen. Overall, the daily time frame is bearish.
Technical analysis - weekly time frame
RSI, MACD and Stochastic are bearish. Same applies to DM+ and DM-. ADX increases which suggests that the bearish trend strengthens. Overall, the weekly time frame is bearish.
Support and resistance
Please feel free to express your own ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Your own due diligence is highly advised before entering trade.
USDJPY NASDAQ100 The correlation between American Indices and the US Dollar is so powerful that some investors see Dow Jones Industrial as a USD market sentiment indicator.
That relationship can be explained, and here is how.
Explanation:
When investors want to buy US stocks they tend to borrow money in low-interest rate currencies, such is the Japanese Yen. The Japanese Yen and the Swiss Franc are perfect for that job. So let's see closer an example of this transaction:
(1) The investors feel bullish about the market so they borrow money in order to buy stocks. They borrow money in Japanese Yen, as Yen offers traditionally very low-interest rates. After they borrow in Yen they change that money to US Dollars in order to buy US stocks. Therefore, they buy US Dollars today and repay that money in Japanese Yen in the future. That transaction is pushing USDJPY higher.
(2) The investors now feel bearish about the market so they want to sell stocks. They are selling the stocks they bought before in US Dollars and pay back the money they have borrowed in Japanese Yen. Therefore, they exchange US Dollars to pay back Yen. That transaction is pushing USDJPY lower.
Note that as financial arbitrage gets involved, the above process is accelerated and happens very quickly. Hence, arbitrage creates a direct correlation between USDJPY and American stock
