FLOW trade ideas
Flow Traders ready for higher levelsSince September Flow Traders has been forming a classic Head and Shoulders patters. Today it clearly broke the neckline. Based on classic H&S guidelines for price targets, the current rally could at least send the price to 22 euro.
On a more fundamental side I think Flow Traders will profit from slightly higher volumes and wider spreads in markets they trade, which should result in higher profits. Therefore I expect profit surprises to be on the positive side which could boost the current rally.
Flow Traders will provide a trading update tomorrow before the bell.
Volatility and BTC exposure with a yieldVolatility and BTC exposure with a 5% yield - plus every single trade this company is making is profitable by design. Mystery cheap
Flow long based on fibonacci, SMA and MACD on daily chartFlow has found support at the 23.6 level. There is still an open gap between fibonacci level 50 and 78.6. Meanwhile, the MACD indicator is bullish. The SMA 10 and 20 have also crossed bullish.
Waiting for uptrend confirmationCurrently waiting uptrend confirmation. As soon as SMA10 is crossed and OBV keeps its vector upwards long postions can be taken. Expect confirmation in the 28-29 range. Looking forward to your feedback.
About Renko Charts
A Renko chart is a type of chart, developed by the Japanese, that is built using price movement rather than both price and standardized time intervals like most charts are. It is thought to be named after the Japanese word for bricks, "renga," since the chart looks like a series of bricks. A new brick is created when the price moves a specified price amount, and each block is positioned at a 45-degree angle (up or down) to the prior brick. An up brick is green, while a down brick is red.
Flow Traders FibonacciNext Fibonacci level sits at 30.74, keeping in mind that traders stepped out 1% below the 0.618 resistance leven during the previous wave up, it might be smart to close the long already, if you are trading FLOW short term.
Flowtraders - check it out!Now this is a stock that most likely not many of you will know, as it is Dutch in origin. Flowtraders is a so called flash trader with proprietary technology which profits on high market volatility and market volume. Without going into all the details, it is worth your time checking out their corporate website for more background: www.flowtraders.com
As we saw yesterday, the January rally has been slowed down, reversal is getting more likely. As a contrarian, we saw the VIX index spike yesterday with +16% as a reaction on the various news events on economic conditions (Europe).
As you can see in the chart, Flowtraders' stock price rises when uncertainty enters the market, be it either bearish or bullish - more trades are being made which is good for the company. Currently the stock is at bottom support and in my opionion way undervalued at the current price. So why did this stock drop so hard this morning is what you may ask yourself?
Analysts expect a net trading volume for Flowtraders of 72,1M for the coming quarter. That is an increase of 70% (!) compared to the same quarter last year and 80% compared to the prior year. Net gain (profit) trippled (!) compared to the previous year. However, analysts were also disappointed in the dividend proposed for 2018 which the company set on 2,35 euro per stock (!). Expectations with the current cash position and upside were that it could have been at lease 3 euro a stock by now. So, dissapointed in a stock that pays a dividend of 2,35 euro a piece already... (?)
If we look at the moneyflow, we see an increase on a dropping stock price . This is a classic divergence we see in an accumulation phase which we know is followed by a mark-up phase. With the current quarter coming, looking at the Dow Jones, S&P 500 or any index of your choice and a rising VIX I expect volatility to increase. These are perfect conditions given the companies business model.
As always, do not trade off solely on my analysis but do your own research! I just wanted to share this perspective
Peace
FLOWTRADERS short (one day before...)It is interesting to show the chart of Flowtraders, which has a lot of momvent in the rhythm and maybe very speculative.
For scalpers this stock could be on your screener list. If I have a valid short confirmed my "volume and volatility" screeners are switched on for two weeks.
EOD setup did worked on 10th August 2016 on candle sticks patterns and price harmonics. The low in point C is a square root factor.
You may use a structured product e.g. www.bnpparibasmarkets.nl
Best to your trading!
