Another volatile & happening WEEK comes to an end for the financial markets. Time for some reflection — so let’s get started.
The Crazy Cryptoverse
The #cryptoverse continues to reel with more bad news — following Facebook & Google, Twitter, LinkedIn & Mail-chimp have all banned crypto advertising. This has put further pressure on the the downward spiral in the alt.coins prices. Bitcoin is hanging perilously close to its previous low while other crypto coins have either caved in to the long term support levels or about to do so. To top all of this the regulation talk has intensified further with 5 crypto exchanges shut down in Japan (second largest & most receptive crypto market).
The total market cap of cryptos has slid further this week from $344 billion to $ 265 billion at the time of writing.
RESISTANCE/SUPPORT PRICE LEVELS OF TOP 5 CRYPTOS:
Bitcoin (bearish) — R1: $7800 R2: $9200 S1:$6700 S2: $5800
Ethereum (bearish) — R1: $455 R2: $570 S1:$385 S2: $355
Ripple (bearish) — R1: $0.65 R2: $0.85 S1:$0.30 S2: $0.17
Litecoin (bearish) — R1: $137 R2: $150 S1:$107 S2: $85
Bitcoin Cash(bearish) — R1: $880 R2: $1130 S1:$660 S2: $520
MAJOR NEWS & HEADLINES:
China — filed for most blockchain patents in 2017
Ripple & Santander — join forces to launch an international money transfer App
Litepay — shuts down amid scam concerns with Litecoin giving up all the gains it had achieved leading up in anticipation of the launch
Bithumb — Launching New Service to Allow Crypto Payments at 6000+ Physical Stores across South Korea (3rd largest crypto market)
Twitter — bans crypto advertisements following Facebook & Google
Bank of England — to Test DLT Use in New Settlement System to connect with distributed ledger networks
Ford — filed for a patent to Use Cryptocurrencies to Ease Traffic congestion
Coinbase — announces it will add ERC20 support to its’ platform
Bitfinex — one of the largest crypto exchanges eeighs Move To Switzerland
Coinmarketcap, ICO TokenMarket, CryptoCompare, Bitgur, Flippening Watch, Coin Telegraph, Bitcoin.com, Coingecko, CCI30, ICO Alert
INFO GRAPHIC OF THE WEEK:
Volatility was the hallmark of the FX markets as well this week which I personally like since it gives you ample opportunities to trade & make money as long as you are following the basics. The greenback showed strength against all Majors this week.
The two noticeable moves this week were from Euro & Yen. The single currency after peaking around 1.2476 retreated sharply to below 1.2300 with the bullish trend turning sideways for now. The most striking move was from USDJPY which jumped from the low of 104.60 to 107.00 on strong equities at the end of the week & end of quarter cash flows.
Looking at the Dollar Index (DXY) the bounce off the 89.00 level is a good sign for USD bulls with the higher low, but a break of channel ceiling needs to confirm the formation of a temporary base & gains towards 91.80 & 92.50 in extension.
RESISTANCE/SUPPORT PRICE LEVELS OF MAJOR FX PAIRS:
EURUSD (Euro) S3:1.2209 – S2:1.2314 – S1:1.2361 – R1:1.2466 – R2:1.2524 R3:1.2628
USDJPY (Yen) S3:104.36 – S2:104.95 – S1:105.16 – R1:105.75 – R2:106.12 R3:106.70
GBPUSD (Pound) S3:1.3801 – S2:1.3980 – S1:1.4072 – R1:1.425 – R2:1.4337 R3:1.4516
USDCAD (Loonie) S3:1.2689 – S2:1.2778 – S1:1.2829 – R1:1.2918 -R2:1.2955 – R3:1.3043
AUDUSD (Aussie) S3:0.7562 – S2:0.7631 – S1:0.7656 – R1:0.7725 – R2:0.7769 – R3:0.7838
Investopedia, Action Forex, Babypips, DailyFX, Forex Factory, Myfxbook, FXstreet, Forex4Noobs
INFO GRAPHIC OF THE WEEK:
Another volatile & turbulent week came to end for the US markets with the turmoil in big tech stocks dragging the market from one side to another. The end of the quarter saw S&P 500 and the Dow Jones Industrial Average posting their biggest quarterly declines in more than two years.
The tariff war worries are still resonating among the investors. Also Facebook continues to dominate the headlines with the data privacy scandal, Tesla dealing with downgrades, supply concerns & NTSB investigation & finally Twitter having its own issues with date privacy as well causing it to drop 20% off the recent high. The only silver lining to this turmoil was the euphoric close to the end of the holiday shortened week with the techs leading the charge amid thin volumes.
For now the SPX has been resilient with bouncing off the 200EMA thrice already. The real test will come next week if this momentum can push through the resistance level around 2660 as shown in the chart below:
Another chart of interest that I wanted to share is of MSCI — The MSCI World Index, which is part of The Modern Index Strategy, is a broad global equity benchmark that represents large and mid-cap equity performance across 23 developed markets countries. I have compared the index’s price to DJIA, FTSE & NIKKEI to see how the 3 biggest stock indices of the world are faring with respect to the global benchmark index. As evident US markets are leading the charge with the Japanese index replicating the moves of the benchmark closely while the London market lags behind.
IPO EXPECTED TO PRICE:
The debut of Spotify (Pending:SPOT) on April 3 will be closely watched in the tech sector. The global streaming music provider anticipates that it will bring in $6.1B to $6.8B in revenue this year and has 198M to 200M monthly active users. The IPO of 55.7M shares will be a direct listing, meaning that no investment bankers will jump ahead to allocate shares to wealthy investors and hedge funds. #SeekingAlpha
Investopedia, CBOE, The Motley Fool, The Wall Street Journal, Bloomberg, CNBC, Barchart, StockCharts, SmartMoney, Finviz
INFO GRAPHIC OF THE WEEK:
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!