Daily Market Outlook, November 11, 2022

Daily Market Outlook, November 11, 2022 “Asian markets surged higher overnight, taking their lead from mammoth gains in US markets, with US equity markets adding three trillion dollars of value as US inflation softened. US CPI came in at 7.7% down from the prior print of 8.2%, with the core metric (excluding energy & food) coming in at 6.3% down from 6.6%. The softer data saw a ‘bad news, good news’ response from markets,, risk appetite abounded as markets viewed the data as giving cover to the FOMC to slow the rate of rate hikes and potentially lower the terminal rate, the Dollar dived, with the Yen advancing the most in a single session since 1998 as US yields collapsed. Fed speakers struck a cautious tone yesterday, maintaining their mantra of rate rises required to stem inflation risks. Market focus shifts to the University of Michigan consumer sentiment release due this afternoon, sentiment reached a six year high last month, supported by a robust labour market coupled with lower gasoline prices in the US also adding fuel to confidence, recent rises in gasoline prices may hamper expectations for today's print, with market watchers looking for a small pullback from the 59.9 last month to an anticipated 59.5 today...”Overnight HeadlinesSP500 & Nasdaq Add $3 Trillion In Value In A Single Day As Inflation Cools - RTRSDollar Dives As Investors Cheer After US Inflation Misses Forecasts - RTRSWeakening Yen Trend May Be History As CPI Print Slams Dollar - BBGFTX Looks For $9.4 Bln In Rescue Funds From Investors, Rivals - RTRSFTX's US Crypto Exchange: Trading May Be Halted In A Few Days - BBGFTX’s Assets Frozen By Bahamas Securities Regulator - BBGChina Eases Quarantine Rules, Flight Bans In Covid Zero Pivot - BBGChina Year-End Export Bounce In Doubt As Global Demand Falters - RTRSChina’s Bank Loans Lowest Since 2017 As Economy Slows - BBGChina May Inject Cash Soon As $139-Billion Maturity Wall Looms - BBGInflation Report Leaves Fed On Track For 0.5-Point Rate Rise In December - WSJFed’s Mester Sees Larger Policy Risks From Too Little Tightening - BBGFed's George Calls For 'More Measured' Pace Of Rate Hikes - RTRSBiden Seeks To Build 'Floor' For China Relations In Xi Meeting - RTRSUK PM Sunak ‘Confident’ Of Fixing Post-Brexit Deal In N. Ireland - BBGRishi Sunak Considers ‘Growth Visas’ To Bring In Skilled Workers - TelegraphOil Crawls Higher On US Hopes, But COVID Rise In China Caps Gains - RTRSGold Eyes Best Week Since March On Hopes Of Less Aggressive Fed - RTRSTechnical & Trade ViewsSP500 Bias: Bullish Above Bearish Below 3925TechnicalsPrimary support is 3925Primary upside objective is 4120Next pattern confirmation, acceptance above 4050Failure below 3915 opens a test of 386020 Day VWAP bullish, 5 Day VWAP bullishEURUSD Bias: Bullish Above Bearish below 1.0150TechnicalsPrimary support is 1.0150Primary upside objective is 1.0284Next pattern confirmation, acceptance above 1.02Failure below 1.0150 opens a test of 1.009020 Day VWAP bullish, 5 Day VWAP bullishToday’s New York Cut Option Expiries: 1.0000 (1.87BLN), 1.0035 (499M), 1.0050-60 (1.1BLN) 1.0065 (303M), 1.0150 (331M), 1.0200 (609M)1.0240-50 (2.34BLN)GBPUSD Bias: Bullish Above Bearish below 1.1640TechnicalsPrimary support is 1.1640Primary upside objective 1.20Next pattern confirmation, acceptance above 1.18Failure below 1.1620 opens a test of 1.157020 Day VWAP bullish, 5 Day VWAP bullishToday’s New York Cut Option Expiries: 1.1600 (603M), 1.1850 (303M)EUR/GBP: 0.8700 (319M), 0.8700 (349M), 0.8800 (330M)USDJPY Bias: Bullish above Bearish Below 143.25143.25 Target Achieved, New Pattern EmergingTechnicalsPrimary resistance is 143.25Primary downside objective is 139.25Next pattern confirmation, acceptance below 140Acceptance above 143.85 opens a test of 14520 Day VWAP bearish, 5 Day VWAP bearishToday's New York Cut Option Expiries: 141.40 (315M), 141.75 (284M), 144.40-40 (550M)AUDUSD Bias: Bullish Above Bearish below .6550.6590 Target Achieved, New Pattern EmergingTechnicalsPrimary support is .6550Primary upside objective is .6720Next pattern confirmation, acceptance above .6660Failure below .6520 opens a test of .646020 Day VWAP bullish, 5 Day VWAP bullishToday’s New York Cut Option Expiries: 0.6475 (624M), 0.6575 (805M), 0.6600 (303M)USD/CAD: 1.3620 (1.07BLN)BTCUSD Bias: Intraday Bullish Above Bearish below 16800TechnicalsIntraday 16800 is primary supportPrimary upside objective is 19300Next pattern confirmation, acceptance above 18300Failure below 16800 opens a test of 1550020 Day VWAP bearish, 5 Day VWAP bearish

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Q3 Earnings Season: Walmart Inc.

Walmart Inc., is one of the world’s largest supermarket chains, offering food, apparel, furniture, pharmaceuticals, electronics and home appliances among many other things. Walmart has a market capitalisation of $386.64B and is the fifth favourite brand behind only Microsoft, Google, Amazon, Apple and above Meta. The retail giant will release earnings results for the fiscal quarter ending October 2022 next Tuesday, November 15 before the market opens.

Walmart BPA Fuente: nasdaq.com

Zacks, ranks Walmart at Rank #3 (Hold) and in the 43% Fund Rank (#143/252) in the Retail-Supermarkets industry. For this report, EPS is expected at 1.31 (-9.66% YoY) and for the fiscal year-end at 5.85 (-9.4% YoY). Earnings are expected to be 147.34B (4.85% YoY) with an ESP of -0.25% and for the FY it is 600.74B (4.9% YoY). The estimate has had 1 downward and 1 upward revision in the last 60 days. WMT has a P/E ratio of 24.37 and a PEG ratio of 4.43.

The company reported results below the estimate in only 4 out of the last 20 reports, the last 2 reports ago. Last quarter the company reported EPS of $1.77 and revenues of $151.86B (+8.4%). During the last month profitability increased by 7.6%.

WMT ventas reportadas y previsión. Fuente: money.cnn

Walmart has the same challenges as many other companies. Inflation, which remains a major factor, continues to be in the public eye, with Thursday’s report showing that US inflation fell from 8.2% to 7.7%, a drop that could be reflected in easing consumer spending amid the economic downturn (which is favourable for omnichannel strategists like Walmart) that has engulfed the last few quarters. Although inflation declined, food and transportation rose 0.7% last month and are up 10.6% and 11.2% year-on-year respectively.

WMT has focused on increasing its e-commerce on par with its physical shops, with exclusive discounts for customers giving them the option to cut costs even while shopping at its 10,500 shops equally helping with currency fluctuations that also affect the company and the increased competition from Amazon and Target.

Operating costs continue to rise, but Walmart looks stronger than other companies thanks to its geographic clustering of shops and the fact that the company also distributes a large amount of gasoline to its customers, thus somewhat neutralising the cost of transportation with the rising price of fuel from its pumps.

Variacion de Inflacion por segmento de EEUU Fuente: datosmacro.expansion.com

The company has also focused on expanding its international operations with a presence in Canada, Chile, China, India, Mexico, Africa and Central America while operating its main supercentres along with Sam’s Clubs nationwide.

Walmart has also boosted its healthcare arm “Walmart Health” that debuted in 2019, which also includes a growing subscription service.

In other business, Walmart signed a partnership with Paramount in the shift to this quarter. Customers with Walmart+ memberships, in addition to their existing in-store, gas, InHome, grocery or music (Spotify) benefits, will also have access to a Paramount+ Essential subscription at no additional cost. This plan will give them access to a variety of popular content, from sagas like “Star Trek” to movies and children’s programming. That membership costs $98 a year and will include the Paramount+ subscription for an additional $60. Walmart has also talked to Disney and Comcast for other partnerships, according to the NYT.

Walmart+ has seen positive membership growth since its launch in September 2020. Walmart+ is estimated to average approx. 21.5 million members.

Technical Analysis – Walmart D1 – $142.36

WMT.s D1

Walmart price fell from highs at 160.74 to leave lows at 117.17 from where it has recovered more than 50% of the fall in the form of an ascending channel with test 2 days ago at 61.8% Fibo at 144.10.

Negative data could make the price bounce off the upward channel guideline near the 38.2% at 133.81 and the 100-period D1 SMA at 132.29, and in the case that the psychological level of 130.00 is broken there could be a continuation of the downward momentum from April-May to the lows of the aforementioned channel.

Otherwise, there could be a bullish impulse to move up to the resistance zone bounded by the psychological level at 150.00 at 78.6% at 151.42 and from there to the 88.6% Fibo highs at 155.77 to the current historical highs at 160.74.

 

Click here to access our Economic Calendar

 

Aldo Zapien

Market Analyst 

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication.

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Market Update – November 11 – Gigantic day in stocks and bonds

• The USD Index was the big loser on the day, plunging 3 big figures to a low of 107.67 from an intraday high of 110.99 before the data. Though it recovered marginally to close at 108.20. That is the lowest close since mid-September. Stocks skyrocketed significantly added to expectations for a stepdown in Fed rate hikes and a paring in projections for the terminal rate. Yields dive 30 bps in the belly to 3.938% on the 5-year. The 10-year was down 27 bps to 3.813%. It is the first close under 4% since October 27. The 2-year yields at biggest drop since 2008.
• EUR – rally above parity and currently at 1.0230.
• JPY – drifted to 140.19 from 146.50 high. Biggest fall since 1998.
• GBP – Sterling spiked to 1.1736 post US CPI data. This morning, GDP showed that UK economy contracted less than expected in the third quarter.
• Stocks – Wall Street broke 2-month resistance. US100 rocketed 7.35% higher to 11,114, with the US500 surging 5.54% to 3,956, while the US30 was up 3.70% to 33,715. It’s the strongest percentage pop in over two years.

• USOil – higher at $88.60 from $84.73.
• Gold – had its best week since March, spiking to 1760, have risen 4.2% so far in the week.
• BTC – Crypto crisis continues, however yesterday Bitcoin reverted some losses turning at 17940. 

Today – European Commission releases Economic Growth Forecast, Michigan Sentiment, ECB’s Panetta, Guindos & Lane Speech.

Biggest FX Mover @ (06:30 GMT) AUDJPY (+0.82%) rallied from 0.6390 low yesterday to 0.6659 now, next resistance 0.6700.  MAs aligning higher, MACD histogram & signal line positive & rising, RSI 72 & flat, H1 ATR 0.0025, Daily ATR 0.0118. 

Click here to access our Economic Calendar

Andria Pichidi

Market Analyst

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

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Tech stocks have plunged this year, but is now the time to buy?

Tech stocks have faced heavy selling pressure this year, although all of these firms have bright futures.

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Market Spotlight: Gold & US CPI

US CPI Up Next Today’s US CPI release will be the main attraction for markets, stealing attention back from the ongoing US midterms results. On the back of the latest .75% hike by the Fed in November, markets are now looking for signs that the Fed will slow the pace of hikes. Chairman Powell mentioned that this might be appropriate within the next couple of meetings. With this in mind, today’s release has clear two-way risk for USD and broader markets.Market Reaction In terms of gauging market reaction to today’s release,  if inflation is seen holding at record levels last month or spiking higher, USD will likely trade higher as traders price in a larger .75% hike in December. In this scenario, gold prices are likely to come off. However, with traders clearly keen to pick a top in USD, any softening of inflation will no doubt skew pricing in favour of a smaller .5% hike in December, pulling USD lower near-term and allowing gold prices to breakout. Technical ViewsGoldFollowing the breakout above the bearish trend line from YTD highs, gold prices have subsequently stalled at a test of the 1722.37 level resistance. However, with momentum studies bullish here, the focus remains on an eventual break higher while the 1679.77 level holds as support. Above 1722.37 and 1791.63 will be the next big hurdle for bulls. Only a shift back below the 1679.77 level negates the current bullish view, with 1618.06 the main support to watch for now.

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Hold on to your oil and gas stocks

Oil and gas stocks have done very well in the last few months. But they’ve got a long way to run yet, says Dominic Frisby.

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Market Spotlight: Crypto Panic As Binance Cancels FTX Buyout

Fresh Fears For Crypto TradersCrypto markets are still awash with fear and panic today as the possibility of crypto exchange FTX collapsing ratcheted higher on news that Binance has walked away from a buyout. Amidst a huge exodus of capital and the more than 90% loss of value in its native token FTT, FTX was due to be acquired by main rival Binance in a deal which would cover the exchange’s roughly $8 billion in liabilities, preventing unmanageable client losses.Binance Baulks At Buyout Binance cited reports of “mishandled customer funds and US agency investigations” as the main drivers behind its decision to abort the takeover. While FTX is reportedly seeking similar buyout options from other firms, nothing concrete has been established yet and as withdrawals continue, the situation is becoming more perilous.Retail Trader Impact If FTX does go bankrupt, this would be the latest high-level insolvency in the crypto-sphere this year. On the back of stable coin TerraUSD collapsing and the crypto fund Three Arrows Capital tanking, the news would have major repercussion for the crypto sector. Retail interest and trading volume have already fallen massively this year when compared with last year and FTX going under would likely see volumes plunging further with the crypto winter growing colder still.Technical ViewsFTT/USDThe chart really puts the plunge in perspective. Trading at around the $25 level just a week ago, FTT is now below $4, having tested the all time lows at $0.95. The outlook remains very bearish for the company. However, given that price is at such historically subdued levels and with the

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NVIDIA – Q3 2022 Earnings Forecast

NVIDIA Corporation is a player in the personal computer gaming market, including Graphics Cards and Computing & Networking. The company, which has a total market capitalization of $342.88B, will report its Q3 2022 results on November 16 (Wed), after the close of the market.

The share price has fallen -55.06% since the beginning of the year following the main American Tech stocks; indeed the pressure due to the increase in interest rates exerted by the Fed is negative in an innovative sector and borrowing is essential in order to remain extremely competitive. The soaring value of the Dollar is also a symptom of stress. (see below)

In a note, BofA Securities said Nvidia is expected to report revenue of $5.9 billion, which would equate to a decline of 12% sequentially and 17% year-on-year. On Aug. 24 the firm forecast revenue of around $5.9 billion for the third fiscal quarter. Despite the new requirements imposed by the US government (new license on exports of H100 and A100 chips) the company said that its outlook for Q3 foresees a sales amount of $400 million to China.

BofA analyst Vivek Arya says the company may still have been able to “partially meet” demand from China. He expects the company to guide fourth-quarter sales to 6.1 billion dollars, which would represent a 20% year-over-year decline, indicating that “The competitive environment has become even more favorable as any potential China-based competitor faces the US design/manufacturing restrictions, while several potential early-stage US rivals face severe economic headwinds.”

Nvidia is profitable however it  has a price-to-revenue ratio of 12 and a price-to-book ratio of 14.8.

Recently Nvidia formalized the production of a new advanced chip for China that meets US export controls, the A800, which can replace the A100 chip. A company spokesperson said, “The Nvidia A800 GPU, which entered production in the third quarter, is another alternative product to the Nvidia A100 GPU for customers in China. The A800 meets the US government’s clear test for reduced export controls and cannot be programmed to exceed it”. Nvidia said that due to limits on high-end chips a shortfall of about $400 million could be considered in China in its fiscal third quarter, having a replacement chip in place could help ease the financial blow.

Regarding the consensus established by financial institutions and their analysts out of 44 respondents; 24 are buying, 7 are accumulating, 12 are on hold and 1 is reducing it. (see below)

Source: Zonebourse

Technical analysis

Nvidia’s stock price currently sits at the $138 level in its cloud and between its Kijun (LV) and Tenkan (LJ); the Lagging Span (LB) is located under the cloud between its sisters, which underlines a hesitation. In the event of a bullish momentum, the price could initially reach $152 and then $178, otherwise the price could test its support at the Kijun level at $128 and could reach $108.

Click here to access our Economic Calendar

Kader Djellouli

Market Analyst

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

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Daily Market Outlook, November 10, 2022

Daily Market Outlook, November 10, 2022 “Crypto carnage contagion strikes global risk sentiment, the crypto space faces its own Lehman moment as FTX implodes from a $32 billion dollar enterprise to being valued at $1 all within 24hrs. Asian markets followed Wall Street's lead and leaked lower overnight ahead of today's critical US inflation data, sentiment in Asian markets was weighed down by a combination of concerns, rising China Covid cases and the mixed mid term election results in the US. Today traders will brace for a potential tape bomb from yet another hotter than expected inflation print, in recent releases the Core metric, excluding food and energy has surprised to the upside printing 40year highs in Spetemeber at 6.6%, markets expect another increase today to 6.7%, however, market watchers seem to coalesce around a potential decrease in the headline figure from last months eye watering 8.8%, analysts have pencilled in an 8.7% read for today, if this fails to materialise expect further declines in US markets to unfold, also worth keeping one eye on the wires for additional developments in the FTX drama as further information regarding exposure to the exchange collapse will also weigh on risk sentiment ...”Overnight HeadlinesBitcoin Price Hits Multi-Year Low, Analysts Expect Further Downside - CoinTelegraphBinance Walks Away From Deal To Acquire FTX - CoinDeskUS Justice Department Looking Into FTX Turmoil During SEC Probe - BBGWarnock, Walker Head To Potentially Decisive Senate Runoff - BBGGOP Still Poised To Capture Narrow House Majority - PoliticoDemocrats Hold On To Key Governorships - PoliticoBiden Intends To Run In 2024 With Announcement 'Early Next Year' - FTMidterm Election Results Boost Biden 2024 Hopes, Strategists Say - RTRSCovid Curbs Increased In China Factory Hub Guangzhou As Outbreak Balloons - BBGChina $131B Singles’ Day Faces Stagnation After Scandals - BBGChina Economic Tsar Public Message, Warning To Future Policymakers - SCMPChina Property Crisis Imperils $1.6T Of Local State Debt - BBGUS Dollar Advances Ahead Of Inflation Data - RTRSYen Speculators Bow To Japan’s Stealth Strategy As CPI Looms - BBGOil Falls For A Fourth Day As China Covid Concerns Grow - RTRSAlaska’s Pricey Crude Is Pushed Out Of China By Russian Oil - BBGGold Traders In Wait-And-Watch Mode Ahead Of US Inflation Data - RTRSTechnical & Trade ViewsSP500 Bias: Bullish Above Bearish Below 3750TechnicalsPrimary support is 3750Primary upside objective is 4118Next pattern confirmation, acceptance above 3920Failure below 3750 opens a test of 369420 Day VWAP bullish, 5 Day VWAP bullishEURUSD Bias: Bullish Above Bearish below .9950TechnicalsPrimary support is .9950Primary upside objective is 1.0284Next pattern confirmation, acceptance above 1.01Failure below .9900 opens a test of .980020 Day VWAP bullish, 5 Day VWAP bullishToday’s New York Cut Option Expiries: 0.9800 (1.25BLN), 0.9815-25 (711M) 0.9850 (310M), 0.9860-70 (1.4BLN), 0.9900 (1.33BLN)0.9925-35 (448M), 0.9950-55 (1.15BLN)0.9990-00 (2.59BLN), 1.0015-25 (861M), 1.0055-60 (611M)1.0065-75 (705M), 1.0090-00 (1.85BLN)GBPUSD Bias: Bullish Above Bearish below 1.1260TechnicalsPrimary support is 1.1260Primary upside objective 1.20Next pattern confirmation, acceptance above 1.1650Failure below 1.1260 opens a test of 1.117020 Day VWAP bearish, 5 Day VWAP bearishToday’s New York Cut Option Expiries: 1.1400 (309M), 1.1450 (787M), 1.1600 (572M)EUR/GBP: 0.8725 (431M), 0.8750 (352M), 0.8790-00 (615M)USDJPY Bias: Bullish above Bearish Below 147TechnicalsPrimary resistance is 147Primary downside objective is 143.25Next pattern confirmation, acceptance below 145Acceptance above 147 opens a test of 147.7020 Day VWAP bearish, 5 Day VWAP bearishToday's New York Cut Option Expiries: 145.00 (1.02BLN), 146.00-05 (665M), 146.50 (381M)147.00 (1.36BLN), 147.50 (320M), 148.00 (480M)EUR/JPY: 145.00 (352M)AUDUSD Bias: Bullish Above Bearish below .6330TechnicalsPrimary support is .6330Primary upside objective is .6590Next pattern confirmation, acceptance above .6520Failure below .6330 opens a test of .627020 Day VWAP bullish, 5 Day VWAP bearishToday’s New York Cut Option Expiries: 0.6500 (651M), 0.6530 (229M), 0.6600 (375M)BTCUSD Bias: Intraday Bullish Above Bearish below 17800TechnicalsIntraday 17800 is primary resistancePrimary downside objective is 15000Next pattern confirmation, acceptance below 15500Acceptance above 18000 opens a test of 1900020 Day VWAP bearish, 5 Day VWAP bearish

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S&P 500 Forecast: Potential Drop Ahead?

Gold has approached the broken monthly downtrend. The asset is trying to draw a Doji candle thus signifying the potential reversal and drop. Currently, it would be wise to check the candlestick formations to predict the future moves of this asset.Brent oil has touched the psychological level of 100 and dropped. Oil might gain the required support at the level of 87.19 and target the level of 100 next.American index S&P 500 has pulled from the downtrend, trying to form the bearish engulfing, thus signifying a potential drop to the supporting level of 3578.

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BNB vs FTX – A war of words that has led to a bloodbath!

The simmering conflict between the two behemoths of the crypto platform industry was in the air, then suddenly accelerated last Sunday when Binance, through its interim CEO Changpeng Zhao, decided to liquidate their entire FTT Token following rumours of insolvency of the in-house investment fund Alameda which is owned by the iconic Sam Bankman-Fried who is none other than the CEO of the FTX exchange platform (see below)

“As part of Binance’s exit from FTX last year, Binance received approximately the equivalent of US$2.1 billion in cash (BUSD and FTT). Due to the recent revelations that have been made, we have decided to liquidate any remaining FTT on our books.”

Cryptoast reports thus: “These rumours come on the heels of a Coindesk report published on November 2 which indicates that the majority of funds held by trading firm Alameda Research are FTT, the token of the FTX platform. As a result, Alameda Research may become insolvent in the event of a sharp drop in the price of FTTs, as was the case with Celsius.” This was all it took for the smell of blood to attract the sharks, even though FTX and especially Alameda were quick to launch counter-measures through CEO Caroline Ellison. (see below)

“If you are looking to minimise the market impact on your FTT sales, Alameda will be happy to buy them from you today at $22!”

It seems clear that Binance saw the perfect opportunity to take out a rising rival exchange. The platform, which three years ago acquired an equity stake in the FTX platform in BUSD Binance tokens and FTTs, sold it all back for $2.1 billion. Following the sale, the price of the token fell drastically by more than 70%, from around 22 dollars to around 5 dollars in 24 hours, dragging in its wake all the cryptomonies with only BNB, the token of Binance, managing to limit its losses.

source: reuters

Yesterday, global cryptocurrency giant Binance signed a letter of intent to buy out its competitor, and within hours reached a deal to buy the exchange and secure customer funds. Sam Bankman-Fried held a “very direct” meeting of all staff and said “this is what’s happening; it’s done”, according to a source close to the matter. The entire transaction is taking place under the watchful eye of the US Securities and Exchange Commission, the US federal regulatory agency that oversees the financial markets, and “it shows that nobody is too big to fail. FTX seemed untouchable,” said Pascal Gauthier, CEO of digital wallet provider Ledger.

This sudden and violent showdown has triggered a tsunami in the crypto ecosystem and reminds anyone who will listen that the industry is still in its infancy and that the fall of a major player leads to a fall in confidence and high price volatility.

BNB Technical Analysis

The price of BNB is currently $315, above its cloud but below its Kijun (L.V) and Tenkan (L.J), the Lagging Span (LB) is above its peers which implies a hesitation as to the future direction. In the case of bullish momentum the price could reach initially $326 at the level of its Kijun and then a second time $398, while in the opposite case the price could reach $296 and then $272. (see below)

BTC Technical Analysis

The BTC price is currently at $18115, below its cloud; its Kijun (LV) and Tenkan (LJ), the Lagging Spans (LB) is below its peers which clearly means a bearish momentum. The price could reach $16819k initially and then if it manages to break support it would open the door to a potential price of $14k. Otherwise it could reach its Kijun at the $19040 level and then in a second phase the $20425 level.

As mentioned above a drop in confidence causes high volatility as can be seen in the below chart with Crypto volumes exploding on the way up meaning that investors are rushing to protect themselves against the price drop.

The first chart shows BTC volumes over 1 week and 1 month.

source: Amberdata

The second chart shows the BTC 35 delta over 1 week and 30 days.

source: Amberdata

Click here to access our Economic Calendar

Kader Djellouli

Market Analyst

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

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State pension: should you buy National Insurance credits to boost it?

If you think you may have a shortfall in National Insurance credits, it is possible to buy them to boost your state pension – but is it worth it?

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Market Spotlight: BTC Hits Fresh 2022 Lows Amidst Crypto Crash

Fresh Wave of SellingYou’ve got to feel sorry for bitcoin bulls. After months of sideways action hopes of a rally were dashed as the leading digital coin broke down to fresh 2022 lows again this week. Now trading at its lowest levels since December 2020, BTC has dropped by roughly 65% this year and looks vulnerable to further weakness over the remaining weeks of the year. BTC wasn’t alone in the sell off wither, we’ve seen similar heavy losses across the board in other leading cryptos such as ETH and LTC.FTX In Trouble The driver behind the more than $1 billion liquidation we’ve seen across the crypto-sphere this week looks to be news that FTX will be acquired by Binance. Market chatter that crypto exchange FTX was on the brink of insolvency saw huge capital outflows from the company within a 24 period. While the FTX CEO claimed the rumours were false, accusing rival Binance CEO Zhang of fuelling the story, the situation continued to spiral. Ultimately, Binance announced that it would acquire the faltering company, backstopping its investors and clients.However, the story has raised fears of further such events as crypto prices and retail interest continue to fall. Coinbase’s Q3 earnings were a major cause of concern last week with the company’s revenues having fallen by around two-thirds from its peak and the so-called ‘crypto winter’ showing no signs of thawing yet.Technical ViewsBTCThe sell-off in BTC this week has seen the asset breaking down to fresh 2022 lows below the 18545 level. Price is currently finding support into the falling wedge support trend line, ahead of the 1660 level and with strong bullish divergence on momentum studies it’s worth noting reversal risks here.

from Tickmill Expert Blog - Forex Traders Blog https://www.tickmill.com/blog/market-spotlight-btc-hits-fresh-2022-lows-amidst-crypto-crash"
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Market Spotlight: Tesla Tanks as Musk Sells More Stock

Tesla Under Pressure Shares in Tesla have come under fresh selling pressure this week. Initially sales were linked to news that Tesla was recalling around 40,000 electric vehicles in the US due to a power-steering problem.  However, bearish sentiment intensified midweek on news that Elon Musk has offloaded another round of shares.Musk Sells MoreFilings with the US financial watchdog this week show that on the back of closing his Twitter takeover deal, Musk sold around 20 million shares in Tesla, roughly $4 billion in total. With this latest tranche of selling, Musk has now sold around $20 billion in Tesla shares this year since announcing his takeover bid for Twitter.Twitter Deal LinkWhile no details have been provided as to why the sale took place, the news is certainly concerning for stockholders given that Musk reassured investors in August that he was done with selling and would not be offloading anymore of his stake. Given the proximity to the Twitter deal it’s reasonable to assume the sales fulfill a cashflow need for Musk. However, the selling will no doubt continue to eat away at the almost cult-like following Musk enjoyed from Tesla devotees.Technical ViewsTeslaThe sell off in Tesla shares this week has seen the stock dropping through the 207.71 base which had underpinned the market over recent weeks. This is a key technical development for Tesla and puts focus on a continuation lower near-term. While within the bear channel, the next level to watch is the 183.26 level, a break of which opens the way for a run down to 154.46 next.

from Tickmill Expert Blog - Forex Traders Blog https://www.tickmill.com/blog/market-spotlight-tesla-tanks-as-musk-sells-more-stock"
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