Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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As Q3 earnings season kicks off the SPX500 is looking subdued. It has charted a lower peak followed by a lower trough. This puts the weekly chart into downtrend. The black 30-week EMA is showing signs of support, but the candlesticks will need to break above the green down sloping trendline to show conviction.
Banks kicked off earnings season last week. JPMorgan Chase (JPM.us), Citigroup (C.us) and Wells Fargo (WFC.us) beat earnings estimates. They posted better than anticipated net interest income, with lending outpacing payments to depositors. Also contributing to earnings was better business from capital markets.
Capital is rotating into havens such as gold and bonds and pushing the price of crude higher, as Israel seemingly prepares for its ground offensive against Hamas. Israel’s military told Palestinians today to start evacuating northern Gaza and move to the southern part of the territory. Consequently, market participants are on edge as the conflict looks to escalate, following Israel’s retaliation for the brutal Hamas attack that took place in…
UKOil retraced significantly towards its end-of-August low (green dashed horizontal) before finding support. Monday saw significant upside when the market opened following Saturday’s brutal attack by Hamas on Israel and the start of a new Middle East conflict. Nerves still abound that the conflict may spread in the region affecting supply lines, and risk premiums are keeping the oil price supported.
UK regulators have approved Microsoft’s $69bn acquisition of Activision Blizzard, which removes the last hurdle for the deal. However, the Competition and Markets Authority said the deal won’t include cloud gaming rights and said in a statement today that, “The new deal will stop Microsoft from locking up competition in cloud gaming as this market takes off, preserving competitive prices and services for UK cloud gaming customers.”
TD Cowen has maintained an Outperform rating for Nvidia. The analyst team has increased its price target from $600 to $700 per share. This represents close to a 50% premium from current price levels and suggests a strong growth story behind artificial intelligence and its development.
The DAX is benefitting from the pullback in yields, as a risk-on sentiment tries to take hold. To this end, FXCM’s GER30 is showing signs of positivity.
Rivian (RIVN.us) shares remain under pressure with its price candlesticks below its black 30-week EMA and the EMA turned down. Its weekly RSI is also below 50 (green rectangle), suggesting a negative underlying momentum.
In a previous article we suggested that the NAS100 had a downtrend bias to it. Price action has evolved to a point where it seems that a descending triangle (green trendlines) has charted on the weekly time frame. Assuming this to be the case, a breakout or breakdown from the pattern will have bullish or bearish implications.
JPMorgan Chase & Co. (JPM.us) is set to lead the charge as the third quarter earnings season for the banking sector commences on October 13th, right before the market's opening bell. Joining the ranks on the same day are Citigroup Inc. (C.us) and Wells Fargo & Co. (WFC.us), who will also unveil their financial results.
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