Time to breathe a little easy & reflect upon what happened in the Financial markets this week. To Summarize — Cryptos made a smart rebound, Stocks remained cautiously optimistic with a less than ideal closing while Greenback remained mostly under pressure in Forex markets. Let’s dissect this information…
The Crazy Cryptoverse
The grinding wait for many of a Crypto bottoming seems to be taking shape finally with a smart rebound by the digital coins in the last two days of the week. Sustained trading above some key levels need to take place for a confirmation though. Sufficed to say though that they have overcome the downward pressure & trading in neutral bias territories at the time of writing… keeping in mind that the exuberant price movements in Cryptos can change things very quickly like Bitcoin’s $1000 jump within minutes on Thursday!
Stories of money laundering using Cryptos, heists and Regulations continue to haunt this ever evolving #Cryptoverse. However, we are seeing an increasing number of institutional investors stepping in to the foray — last week it was the legendary investor George Soros & this week Venrock (venture capital firm) owned by the Rockefeller family is taking a liking to the Cryptos… maybe these big name moves are causing a shift in the tide for Bitcoin & its peers.
Market Cap for the digital coins rose handsomely this week from a low of $249 billion to $312 billion at the time of writing with the BTC dominance falling to 42.6% from 45.2% which BTW always happens when Cryptos start to do well. Let’s look at some price levels of the Top 5 Cryptos followed by the CCI30 — a cryptocurrency Index based on the Top 30 Cryptos by market-cap.
Bitcoin (neutral) — R1:$8200 R2:$9200 S1:$7400 S2:$7000
Ethereum (neutral) — R1:$530 R2:$570 S1:$455 S2:$415
Ripple (neutral) — R1:$0.72 R2:$0.87 S1:$0.54 S2:$0.47
Litecoin (neutral) — R1:$137 R2:$152 S1:$118 S2:$110
Bitcoin Cash(neutral) — R1:$795 R2: $935 S1:$610 S2:$530
USEFUL CRYPTO RESOURCES:
INFO GRAPHIC OF THE WEEK:
Financial markets mostly remained optimistic & upbeat this week which put pressure on the Greenback & the U.S. Dollar Index as it continued to move in a ST downward sloping channel in a MT consolidation zone — both the Support & Resistance are still in tact although downside is favored at this point. Only a major shift in market sentiment would move the index out of this consolidation zone.
Basically it was a USD weakness story this week with Pound (GBPUSD) & Loonie (USDCAD) being the two stars with their continued resilience to any risk aversion moves. Pound almost touched the 1.4300 level which it hasn’t seen since the BREXIT vote but significant headwinds lie ahead in the daily/weekly chart. For Loonie the strength comes from multi year high oil prices coupled with an optimism of striking the NAFTA deal soon. The data coming out of Canada has been supporting this thesis as well.
Finally with our FX market direction determinant — USDJPY has been grinding higher with the supportive equities this week hitting a 2 month high — a significant resistance around 108.30 level if broken would turn the bias bullish in the Medium term. Let’s look at the daily price levels of the 5 USD Majors.
RESISTANCE/SUPPORT PRICE LEVELS OF MAJOR FX PAIRS:
EURUSD (Euro) S3:1.2184— S2:1.2259 — S1:1.2294— R1:1.2369 R2:1.2409 — R3:1.2485
USDJPY (Yen) S3:105.94 — S2:106.55 — S1:106.90 — R1:107.52 — R2:107.78 — R3:108.39
GBPUSD (Pound) S3:1.4003 — S2:1.4106 — S1:1.4168— R1:1.4271 R2:1.4310 R3:1.4412
USDCAD (Loonie) S3:1.2498 — S2:1.2547 — S1:1.2568 — R1:1.2617 R2:1.2644 — R3:1.2693
AUDUSD (Aussie) S3:0.7699 — S2:0.7726 — S1:0.7741 — R1:0.7769 R2:0.7781 — R3:0.7808
USEFUL FOREX RESOURCES:
INFO GRAPHIC OF THE WEEK:
No clear direction from the US stock market this week either… started off the week with trader war worries looming with more tariffs being announced by the US but the fear turned into optimism with reaffirmation from the Chinese leader that they are not going to ensue any confrontational policy with their biggest trading partner which lifted the global indexes led by the US bourse.
Come Friday and the S&P 500 once again failed at the 2680 pivot level & closed significantly lower @ 2656.30 which isn’t an ideal close if you are looking for a confirmation of a double bottom in place — having said that though it’s still supported by a ST bullish trend line but just about — sitting right on top of 20EMA. Next week should provide the tipping point in either direction. Let’s take a look at the chart to make sense of it all if you are a visual person like me.
In other news, Endpoint security software company Carbon Black (CBLK) filed for an IPO of up to $100M. Carbon Black will apply to list on Nasdaq under the “CBLK” symbol. Underwriters include Morgan Stanley, JPMorgan, and Keybanc Capital Markets.
Carbon Black revenues were $70.6M in 2015, $116.2M in 2016, and $162M in 2017. Net losses for those periods were $38.7M in 2015, $44.6M in 2016, and $55.8M in 2017. Company attributes net loss increase to growth investments. #SeekingAlpha
USEFUL STOCK RESOURCES:
INFO GRAPHIC OF THE WEEK:
Time for the Nut to wrap it up here. Have a great weekend guys… happy trading. Here’s a few facts from history (#Investopedia):
April 9, 2012: Facebook purchased Instagram for $1 billion, a massive amount considering the latter had yet to report any revenue. Almost two years later, Facebook acquired WhatsApp in an even bigger deal.
April 11, 1985: A marathon board meeting at Apple saw a high-voltage power struggle unfold between Steve Jobs and CEO John Sculley. Jobs left Apple in September that year only to return in 1996 and led the company to success.
April 12, 1996: Yahoo made its debut on Wall Street. Despite an IPO price tag of $13 dollars per share, trading started at $24.50 and closed at $33 after reaching a high of $43. Over the course of the day, Yahoo sold 2.6 million shares.
Until next week, you can follow me on TradeAlike app (@Fakd) to receive real time alerts on Forex & Stocks. I also post my trade ideas, stats & news on a daily basis on Twitter & StockTwits — “Trade Nut” signing off!