Articles

MATIC Price Forecast: Polygon rallies with authority, targets $2

MATIC Price Forecast: Polygon rallies with authority, targets $2

139050   May 15, 2021 06:40   FXStreet   Market News  

  • MATIC price tags significant Fibonacci extension level as it rallies over 30%.
  • Topside trend line offered no resistance today.
  • Accumulation/distribution profile continues to favor the buyers.

MATIC price overcame two days of indecision to generate the best one-day rally since April 27. As long as Polygon stays above the topside trend line, the DeFi token will extend the impulsive rally through the weekend.

MATIC price showcasing the positive outlook for scalability solutions 

Today’s 30% gain follows consecutive doji candlesticks, signifying a general equilibrium between Polygon buyers and sellers and a heightened level of indecision. The indecision could have resulted from the general volatility in the cryptocurrency market or the downward pressure being exerted by the topside trendline running through the April 30 high.

MATIC price has achieved a 230% gain since the breakout from a multi-week consolidation on April 26. It has been a highlight in the crypto space and confirms accelerating interest in Polygon scalability initiatives.

Earlier, MATIC price tested the 261.8% Fibonacci extension of the March-April consolidation at $1.53, raising the odds that Polygon will hold above the topside trend line at $1.21 and the May 12 high at $1.31 this week. More importantly, it sets the platform for higher prices in the days ahead.

In the short-term, the outstanding target is the confluence of the 261.8% Fibonacci extension of the recent May consolidation at $1.99 with $2.00. It would yield a 40% gain from the MATIC price at the time of trading.

If Polygon investors successfully surmount the notable resistance around $2.00, the next upside target for MATIC price is the 361.8% extension of the May consolidation at $3.01, giving investors a 100% gain from the price at the time of writing.

Working in favor of the Polygon bullish outlook is the muted overbought condition shown by the daily Relative Strength Index (RSI). It dictates higher prices in the near term, but it is important to note that the weekly RSI is very overbought and could undermine the rally to $3.00.

MATIC/USD daily chart

MATIC/USD daily chart

A failure this week to remain above $1.31 will unravel the bullish thesis, indicating that the rally this month has come to finalization and that a deeper corrective process, whether in time or price, has overtaken MATIC price.

Full Article

Polkadot price expels weak holders, prepares DOT for a 60% rally

Polkadot price expels weak holders, prepares DOT for a 60% rally

139048   May 15, 2021 05:26   FXStreet   Market News  

  • Polkadot price is on course to close this week with a bullish engulfing week.
  • Downtrend for the weekly Relative Strength Index (RSI) retreats.
  • DOT topside trend line may offer temporary resistance for the new rally.

Polkadot price is preparing to finalize the end of a multi-week consolidation beginning with a rare but powerful, bullish engulfing week. If DOT remains above last week’s high at $44.99 through the weekend, it will confirm a new uptrend for the 8th largest cryptocurrency by market capitalization.

Polkadot price to reward patient altcoin investors

It was an eventful beginning to 2021, as Polkadot price rallied over 700% into the February high, securing its position as one of the largest cryptocurrencies. Since, price action has been mixed and sideways, with brief new highs in April failing to galvanize investor enthusiasm.

A couple of weeks ago, it appeared that Polkadot price was beginning to shape the right shoulder of a massive head-and-shoulders top, but this week’s price surge has disrupted the pattern symmetry and forced a rethink of the outlook.

If Polkadot price does close the weekend above $44.99, thereby triggering a bullish engulfing week,  it will raise the odds that DOT will pierce the topside trend line, leaving the altcoin free to touch much higher prices.

A bullish engulfing week is formed when the current week’s price low undercuts the previous week’s low and reverses higher to close above the last week’s high. It signals that the remaining weak and impatient DOT holders have been expelled, and the digital token’s investor base is being populated by investors that are more committed.

It is important not to underestimate the power of long-duration consolidations like the one for DOT. Two examples are the MATIC breakout at the end of April from a six-week consolidation that has earned a 200% for investors and the Cardano breakout this month from a nine-week consolidation that has rewarded investors with a gain of over 30%.

Moving forward, Polkadot price needs a weekly close above $44.99 on Sunday to activate the bullish thesis. The first resistance is the topside trend line at $53.72 and then the 161.8% Fibonacci extension of the April correction at $63.63. Bigger aspirations will target the 261.8% extension of the April correction at $87.00, generating a 60% return from the topside trend line. 

It is important not to underestimate the power of long-duration consolidations like the one for DOT. Two examples are the MATIC breakout at the end of April from a six-week consolidation that has earned a 200% for investors and the Cardano breakout this month from a nine-week consolidation that has rewarded investors with a gain of over 30%.

DOT/USD weekly chart

DOT/USD weekly chart

Polkadot price could ruin the outlook by closing below $44.99 on Sunday. Initial support will materialize at the tactically important 10-week simple moving average at $37.95. A spike in selling pressure will put the 50% retracement of the 2021 rally at $26.85 on the radar, a level that offered support twice during the consolidation.

Full Article

Forexlive Americas FX news wrap: USD weakest of the majors today after retail sales disappoint

Forexlive Americas FX news wrap: USD weakest of the majors today after retail sales disappoint

139040   May 15, 2021 05:21   Forexlive Latest News   Market News  

Forex news for North American trading on May 14, 2021

The week is ending with the USD as the weakest of the major currencies today. The NZD was the strongest.  

Forex news for North American trading on May 14, 2021

The fall in the USD was helped by a disappointing retail sales number for April. The expectations were for a rise of 1.0% for the headline number and +0.7% for ex auto. The actual numbers came in at 0.0% for the headline and -0.8% for the ex auto.  The saving grace was that revisions were higher, but the trend for the most recent month was not as great as the market was thinking -especially with the stimulus checks.

Industrial production (and capacity utilization were mixed. Industrial production rose by 0.7% versus 1% estimate but the prior month was revised much higher by 2.4% versus 1.4%.. Capacity utilization came in a touch weaker than expectations at 74.9% but was higher from previous month at 74.4%.

The University of Michigan sentiment index was weaker at 82.8 versus 90.0. Of concern with this report was that the inflation expectations rose rather markedly to 4.6% from 3.4% last month. The Fed has been saying that they would be concerned about inflation expectations, but they would have to be over an extended time period. This reading was perhaps strike 1.

The data on the surface today seemed more negative then it really was as the revisions higher saved the day.  However, what may have helped the dollar selling was the rise in the stock market and move lower in yields.   

One of the Pavlovian reactions in the forex market is if the stocks are strong, there tends to be a lean into the “risk on” currencies like the NZD, AUD and even the EUR, and a contrasting lean out of the ‘relatively safety’ of the USD and JPY. That is how it worked out today as the major indices saw solid gains of 1.06% for the Dow, 1.49%  for the S&P and they solid 2.32%  For the Nasdaq.  Those numbers pushed flows into the NZD and AUD (they were the  strongest of the majors) and out of the USD and JPY (they were the weakest today). 

US stocks were higher today

The move lower in yields also helped to weaken the greenback. The 10 year yield moved lower by about -2.7 basis points, while the longer 30 year bond yield fell by nearly double -5.3 basis points on the day. The debt market traders seem to be relieved that there was not a disaster during the monthly 3, 10 and 30 year auctions this week.  There was concerns that with poor auctions, the 10 year could look to approach 2.0%.  Instead the yield in the 10 year is ending at 1.63%.

US yields were lower today

How did the major markets shake out for the week?

Looking at the US stocks this week, the major indices are closing lower (the NASDAQ has been down for four consecutive weeks now). The declines were led by the NASDAQ with a fall of -2.34%. The S&P fell -1.39% and the Dow was lower by -1.14%. 

European equities had mixed results this week with Germany and France near unchanged, UK FTSE 100 down -1.21% and Spain’s Ibex (up 0.95%) and Italy’s FTSE MIB higher (up 2.09%).  In the Asian market, the Nikkei index tumbled -4.34% and was the worst performer for the week.

Major indices were mixed this week In the debt market in Europe and the US this week, the benchmark 10 year yields were higher. Italy yields rose 10.6 basis points for the week. The US 10 year – although lower today – was still up 5.47 basis points on the week as there was some selling (move higher in yields) into the auctions.

The weeks yields in Europe and US move higher

What did the yield curve do in the US this week?

Two years were relatively unchanged, while the 30 year moved up 6.61 basis points.  So a bit steeper, but with the confines of the recent levels.

US yields move higher

Lower stocks/higher yields did push the USD marginally higher for the week. Looking at the weekly changes below, the USD had marginal changes vs the EUR, CHF and CAD was lower vs the GBP but was higher vs the JPY, AUD and NZD.  

For the week, the GBP ended as the strongest of the majors helped by the follow through buying of the pound after the Scottish elections (less of a chance for a referendum).  The AUD and JPY were the weakest as the dust settled into the close of business.  . 

The dollar was stronger this week. The pound was the strongest, while the AUD was weakest

A snapshot of other market near the end of the week shows:

  • Spot gold rose at $16.20 or 0.89% to $1842.95.
  • Spot silver rose $0.31 or 1.17% at $27.40
  • WTI crude futures rose $1.72 or 2.7% at $65.54
  • The price of bitcoin is ending down $140 or -0.28% of $49,170. The high price reached $51,569.56 while the low extended to $48,440.

Wishing you all a happy and healthy weekend.   

Full Article

United States CFTC Oil NC Net Positions: 496.6K  vs previous 500K
United States CFTC Oil NC Net Positions: 496.6K vs previous 500K

United States CFTC Oil NC Net Positions: 496.6K vs previous 500K

139039   May 15, 2021 04:56   FXStreet   Market News  

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Full Article

Japan CFTC JPY NC Net Positions: ¥-41.7K  vs previous ¥-41.5K
Japan CFTC JPY NC Net Positions: ¥-41.7K vs previous ¥-41.5K

Japan CFTC JPY NC Net Positions: ¥-41.7K vs previous ¥-41.5K

139038   May 15, 2021 04:51   FXStreet   Market News  

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Full Article

United States CFTC Gold NC Net Positions climbed from previous $170.7K to $192.3K
United States CFTC Gold NC Net Positions climbed from previous $170.7K to $192.3K

United States CFTC Gold NC Net Positions climbed from previous $170.7K to $192.3K

139037   May 15, 2021 04:51   FXStreet   Market News  

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Full Article

Week Ahead on Wall Street (SPX, QQQ): Don’t fight the Fed continues to be the narrative as data disappoints

Week Ahead on Wall Street (SPX, QQQ): Don’t fight the Fed continues to be the narrative as data disappoints

139031   May 15, 2021 04:45   FXStreet   Market News  

  • Equity indices look set to close the week in positive mode despite poor retail sales data.
  • Meme retail stocks roar back as Bitcoin struggles to hold 50,000.
  • Big tech also sees flows as equity inflows continue for the 14th week.

An eventful week for equity markets, as financial markets thrived with multiple narratives. We started the week in the shadow of Dogecoin as Elon failed to deliver on Saturday Night Live. Mr. Musk then further went after the big daddy itself, Bitcoin, saying Tesla was suspending all use as a form of payment. Elon Musk stated it was because of the ESG (Environmental, Social and Governance) issues as it takes a lot of energy to mine Bitcoin. An odd one given this is a well-known fact and was known at the time Tesla decided to begin accepting Bitcoin. 

Investors are more cognisant of ESG concerns now so Tesla may have come under pressure in that regard. Bitcoin was further in trouble as it was reported that the ransomware or hack attack on the Colonial pipeline, resulted in a $5 million ransom payment where the hackers demanded payment in Bitcoin. This has always been one of the main criticisms of Bitcoin, that it is unregulated and used for illicit and illegal transactions. Bitcoin suffered as this brings upon expected increased regulatory attention may now be brought to bear.

This may actually have a silver lining as it may legitimize and regularize Bitcoin. The problem still remains that all governments need and demand control of their currency. Bitcoin is unlikely to usurp the dollar any time soon. More likely it will become a more mainstream regulated asset. This has positives and negatives. The negatives in terms of price are regulation may involve insider position disclosure and a lack of the many pump schemes. A good thing for investors but not for some bubble assets.

Equities started the week negatively, perhaps anticipating the Consumer Price Index, and the number duly lit the touchpaper for some further action. The Nasdaq shed over 2.5% on Monday and repeated the feat on Wednesday post the CPI release. All Equity markets immediately went south on the number and remained under pressure. Bears finally awoke from their slumber and started to get excited but they were swiftly sent back into hibernation by Thursday and Friday’s price action. Strong inflows (see below) and some strong support areas in the Big Tech names in particular (See FAANGTastic technical analysis) helped equites turn the tide and rally to end the week. 

The bond market tried its best to hurt equities as the 10-year Treasury yield reached 1.7%. However, it was the German Bund that stole the show, nearly going to a positive yield for the first time in two years. The move struggled for momentum and Friday’s weak retail sales number put yields back into the safe zone for equities, for now.

Bitcoin and crypto outflows early in the week made their way into equities by Thursday and in particular the meme names. AMC scooped the prize for most impressive as it smashed triangle resistance and signed for a near 30% rally on Thursday alone. AMC is up 4% on Friday at the time of writing and gunning for the key $14.54 resistance.  

Don’t fight the Fed

Despite the increasing nervousness over equity valuations, “buy the dip” and “don’t fight the Fed” seemed to resonate strongly with investors as the latest Refinitiv Lipper Alpha flow data shows. Up to $9 billion was pumped into equity funds to the end of May 12 from a week earlier. This is the fourteenth consecutive week of inflows. iShares Nasdaq ETF (QQQ), the Q’s as they are known, took in $1.9 billion for the first inflows in a month, which we had posted in last week’s jobs report,

“Expect the Nasdaq (Nasdaq, QQQ) to see some inflows next week after Friday’s jobs report as it was one of the few ETFs to see outflows”.

Growth and Value large-cap ETF’s both reaped over $4 billion in inflows.

The widely followed ARKK fund continued to suffer as price broke the 200-day moving average and followed this up by breaking key support at $106.25. ARKK price has now dropped nearly 40% from its 2021 high. 

ARKK Daily Chart

S&P 500 and Nasdaq (QQQ) technical chart levels

The S&P 500 staged a strong recovery and is poised to return into a bullish formation if it can close above the 9 and 21-day moving averages. Resistance at 4,124 was quickly recaptured on Friday as the disappointing retail sales number reenergized the argument for further stimulus and zero rates that had been brought into question by the strong CPI and PPI. The worst-case scenario of slowing growth and inflation has not been countenanced as of yet. Clearly buy the dip and “don’t fight the Fed” still are the go-to trades.

On the daily chart, S&P 500 price is on a strong bounce out of the 4,050-4,100 price range with the hopes of remaining bullish. The potential downside remains a factor and we can observe the following support level at 4,124 as a first test. The highlighted area below 4,000 in our S&P 500 chart is a strong support area and would be the next target following a breakdown below the 100 and 200-day moving averages (MA).

S&P 500 Daily Chart

 

The Nasdaq gave us a much nicer viewpoint, trading neatly down to the support area and close to the trendline support at 12,910. Friday is a textbook retracement back to the 9-day moving average resistance at 13,396. Break that level and not much stands in the way of a test of new highs.

NASDAQ Daily Chart

 

Wall Street Week Ahead

Earnings season is pretty much done and dusted and it was another knockout one for earnings growth. 457 of the 500 companies from the S&P 500 have reported and 87% of them have beaten estimates. 

SPX Earnings Scorecard

Some laggards report next week among them Home Depot, Walmart and Cisco.

2021-05-19

Intraday

TJX Companies

TJX

2021-05-21

Before Market Open

Booz Allen Hamilton

BAH

2021-05-21

Before Market Open

Foot Locker

FL

2021-05-21

Before Market Open

VF

VFC

2021-05-21

Before Market Open

Buckle

BKE

2021-05-21

Before Market Open

Deere

DE

2021-05-20

Before Market Open

BJ’s Wholesale Club

BJ

2021-05-20

Before Market Open

Kohl’s

KSS

2021-05-20

Before Market Open

Hormel Foods

HRL

2021-05-20

Before Market Open

Canadian Solar

CSIQ

2021-05-20

Before Market Open

Ralph Lauren

RL

2021-05-19

Before Market Open

Lowe’s Companies

LOW

2021-05-19

Before Market Open

Target

TGT

2021-05-19

Before Market Open

Analog Devices

ADI

2021-05-19

Before Market Open

JD.com

JD

2021-05-18

Before Market Open

Baozun

BZUN

2021-05-18

Before Market Open

Walmart

WMT

2021-05-18

Before Market Open

Baidu

BIDU

2021-05-18

Before Market Open

Home Depot

HD

2021-05-18

Before Market Open

iQIYI

IQ

2021-05-18

Before Market Open

Macy’s

M

2021-05-17

Before Market Open

Clover Health Investments

CLOV

2021-05-20

After Market Close

Deckers Outdoor

DECK

2021-05-20

After Market Close

Palo Alto Networks

PANW

2021-05-20

After Market Close

Applied Materials

AMAT

2021-05-19

After Market Close

Corporacion America

CAAP

2021-05-19

After Market Close

L Brands

LB

2021-05-19

After Market Close

Cisco Systems

CSCO

2021-05-18

After Market Close

Trip.com Group

TCOM

2021-05-18

After Market Close

Take-Two Interactive

TTWO

2021-05-17

After Market Close

Fisker

FSR

2021-05-17

After Market Close

ExOne

XONE

Source:Benzinga

Economic data is pretty light as well with Monday and Tuesday seeing little of note. 

Wednesday has a 20-year bond auction which may pique some interest.

Thursday has the usual jobless claims.

Friday brings Marki PMI and Existing Home sales. The Existing Home Sales price change will draw more than usual attention given heightened investor fears around inflation and reports of rising prices notably the spike in Lumbar.

US Economic Calendar

That’s all folks! If you have made it this far, thank you for reading and enjoy the weekend.

Full Article

United Kingdom CFTC GBP NC Net Positions increased to £28.2K from previous £19.8K
United Kingdom CFTC GBP NC Net Positions increased to £28.2K from previous £19.8K

United Kingdom CFTC GBP NC Net Positions increased to £28.2K from previous £19.8K

139030   May 15, 2021 04:45   FXStreet   Market News  

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Full Article

Australia CFTC AUD NC Net Positions rose from previous $1.5K to $2.4K
Australia CFTC AUD NC Net Positions rose from previous $1.5K to $2.4K

Australia CFTC AUD NC Net Positions rose from previous $1.5K to $2.4K

139029   May 15, 2021 04:40   FXStreet   Market News  

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Full Article

European Monetary Union CFTC EUR NC Net Positions rose from previous €84.8K to €93.9K
European Monetary Union CFTC EUR NC Net Positions rose from previous €84.8K to €93.9K

European Monetary Union CFTC EUR NC Net Positions rose from previous €84.8K to €93.9K

139028   May 15, 2021 04:40   FXStreet   Market News  

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Full Article

United States CFTC S&P 500 NC Net Positions: $28.2K  vs $-33.8K
United States CFTC S&P 500 NC Net Positions: $28.2K vs $-33.8K

United States CFTC S&P 500 NC Net Positions: $28.2K vs $-33.8K

139027   May 15, 2021 04:35   FXStreet   Market News  

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Full Article

XLM Price Forecast: Stellar rebound misleads, eyes 40% decline

XLM Price Forecast: Stellar rebound misleads, eyes 40% decline

139025   May 15, 2021 03:45   FXStreet   Market News  

  • XLM price stakes support at the critical 61.8% Fibonacci retracement level.
  • Shooting star candlestick pattern keeps bears in control.
  • Bearish momentum divergence on multiple time frames adds to downward pressure.

XLM price realized a bearish shooting star candle pattern on May 10 after testing the channel’s upper trend line. As long as Stellar remains below the candle’s high, the outlook is pointed bearish, targeting a 40% decline.

XLM price reveals few places to hide

Stellar rallied strongly into February, but XLM price has only managed to print marginal new highs in April and again in May, delivering a disappointing 30% return from the February high to the May high.

On May 10, XLM price closed with a bearish shooting star candlestick on the daily chart. It was an eventful end to Stellar’s first attempt to release above the multi-month channel. The candlestick reversal pattern features buyers’ struggles to lift prices higher against the overpowering distribution of the sellers.

On May 12, XLM price declined below the shooting star low at $0.618, confirming the pattern and a bearish outlook. 

To add to the heightened bearishness, the daily and weekly Relative Strength Indexes (RSI) have not printed a new high along with XLM price since February, creating a bearish momentum divergence. 

Downside support begins at the 61.8% retracement of the April-May rally at $0.539 and then the 50-day simple moving average (SMA) at $0.528. Some support may develop at the 78.6% retracement at $0.473, but the channel’s lower trend line currently at $0.402 will capture sellers’ attention and leave Stellar with a 40% decline from price at the time of writing.

Stellar has recovered over the last two days, but to invalidate the bearish outlook, XLM price needs to rally above the shooting star high at $0.780.

XLM/USD daily chart

XLM/USD daily chart

A general rebound for the crypto market may permit XLM price to extend the current rebound, raising the odds that Stellar will finally overcome the channel’s upper trend line at $0.733 and surpass the shooting star candlestick high at $0.780. 

Under this scenario, bullish investors can expect XLM price to target the 161.8% extension of the April decline at $0.981 and the psychologically important $1.00.

Full Article

Rewind