Technical vs Fundamental: This week’s opportunities

As earnings season matures the markets look towards the indices and equity markets for fundamentally led market opportunities. Better than expected returns and subscriber growth saw the likes of Netflix big gainers in recent days. So shaking off fears of what will happen once Disney and other major distributors remove content from the streaming service in a bid to rival them. As we head towards Halloween, the scarier proposition remains the current and on-going geo-political tensions which see FX markets, Gold and Oil enter frenzies were we see mass uncertainty as to future price adjustments and potential intraday trading volumes.

As currently constructed some of the major elements driving these tensions range from Brexit, with D-day fast approaching and still no clear path for how a deal will look for both the EU and UK. US/China trade war, every few days we hear reports of which industry may be next affected by potential tariff rises in this tit-for-tat dispute. Saudi Arabia and the turmoil which was created in the recent fallout from a US based journalist being killed in an apparent torture in Turkey, leading to speculation on the future of the Kingdom and the economy reeling from this uncertainty affecting Oil prices in the process. Below I will analyse the 3 markets most affected by the factors discussed above to see the current positioning of these, and any potential technical trends being formed which could create market opportunity.

Crude Oil
Tradeview Crude-oil

2018 has seen the beginning of the long awaited rejuvenation in the price of Crude, jumping to a high of $77 per barrel after starting the year at $56. However with some of the recent tensions in the Middle east, plus OPEC being ousted by Trump for this year-to-date price rise, recent weeks has seen that rally hit a resistance point. Which at $77 is the highest price Crude has listed in 4 years. Looking at the technicals the resistance also coincided with the 10-day moving average peering down towards the 25 and 50 day respectfully, with some hoping for a potential death cross, However with the volume’s approaching oversold, more analysis must be done, and you can find out more via https://www.tradegatehub.com/

EURUSD
Tradeview - EURUSD
Recent dollar strength has been seen as one of the contributors to recent sell-off’s in emerging markets economies. Looking at EURUSD we can see post-spring to date after a long bear run in this pairing, we have entered a consolidation. With the notion that a weak dollar is good for all, plus the technical positioning of this support point will  see a lot of retail traders potentially lulled into longs here. What are your views on this?

XAUUSD

Tradeview - XAUUSD

Continuing with the dollar strength story we saw Gold fall back to it’s long-term floor price of $1,189.Last weeks ally led by a weak start to earnings season has also slowed as the volumes seem to have reached overbought territory. This in conjunction with the moving averages may be an anticipation of what goes up eventually coming back down, with that long-term floor price potentially the next stop if indication mature how many traders may be hoping.

For you, scouting the correct opportunities whilst managing your risk will be one of the biggest hurdles in achieving success in your trading. Here at Tradeview we have recently launched TradeGate Hub –  which offers real-time social trading services from our own team of well vetted and experienced traders. Along with fundamental news and the potential effects they may have on markets you trade.

To join us for this and more click here.

Eliman Dambell

 

Eliman Dambell
Bussines Development
edambell@tvmarkets.com