Trading recommendations and analytics for VIP clients for 14.05.2019

Stock markets have experienced the largest decline since October 2018

Yesterday President Trump tweeted warning China against retaliating with tariffs of their own. The tweets fell on unfazed eyes in Beijing, where a threat of tariffs on $60 billion of U.S. goods to start on June 1st made its way to the press. The U.S. market took a tumble lead by companies that China plans to target with its tariffs. With this scuffle coinciding with a slip in Europe investors are having trouble finding solid ground.

The White House has reviewed military plans to send up to 120,000 troops to Iran if there are attacks on U.S. forces or further improvements to its nuclear weapon capabilities. With Washington’s current agenda of stifling oil exports in hopes of pushing Tehran into a new nuclear agreement. Iran has said the U.S. is engaging in “psychological warfare,” and called the increased military presence a “target,” rather than a threat. Should a battle ensue oil prices would be expected to rise as stopping its export will be a likely a focus of the administration.


Currencies, crypto assets and commodities

Gold broke the upper border of its technical Wedge pattern. Its bullish trend will be able to continue. As major currencies like the EUR, USD, and GBP see volatility this precious metal will likely continue to rise.

EUR/USD couldn’t break 1.12600 twice, so the probability of a downtrend has increased. Potentially the pair could drop to 1.12100 should the current price channel remain.

The NZD/CAD chart has shown the Doji candlestick pattern, which may indicate a bearish trend.

Ethereum began to climb after Bitcoin saw gains. Ethereum’s current long term goal is 240.

Yesterday Brent showed a false break of its channel’s upper border. The day’s stock market crash led to an oil crash, which may continue in spite of the turmoil in the Middle East.

Resume: The U.S. — China trade war has impacted both economies and more and will continue to do so while tariffs and threats are lobbed back and forth. Most notably the Euro-bloc is collateral damage of this confrontation while also gearing up for potential levies on U.S. goods should the White House decide to increase tariffs on European cars.


Stock market

The S&P 500 has shown a reversal from the lower border of its channel. This could lead to regaining ground lost yesterday, though the trade war could still impact investor confidence.

A Tesla Model S 85 KWH dual power version burst into flames 30 minutes after being parked in Hong Kong’s San Po Kong district on Sunday. As the 14th car to catch fire (most after crashes) since 2013 this does not bode well for the EV maker’s ticker price.

President Trump promises to give NASA $1.6 billion to land the first woman on the moon by 2024. This great news for Boeing as the company works closely with the space program and could contribute to turning around its recent downtrend.

Technical analysis: Boeing having broken its channel’s lower border, may fall to 300; its closest support level.

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