World Markets Stall
As momentum to reverse the long fall of the last seven weeks vanishes before our eyes the recent malaise looks like it is becoming a longer term trend. Markets around the world have lost between 8 and 12 percent of their values. This is a lot of cash wiped from peoples and institutions’ accounts. We can profit from these declines by using a critical faculties and staying tuned into the charts.
Facebook Gives itself a Black Eye
In the one and a half weeks since the 16th of March until now Facebook has lost over 18% of its value. That is a cool 22.85 BILLION dollars erased from the pockets of its stockholders. In less than 2 weeks. The stock is crashing. Unfortunately there are no technical levels we can use to make any type of determination where the fall will stop and FB’s chart has been pretty consistently up since its IPO in May 2014. It is still falling so feel comfortable trading the stock down for the short term. Minutes to hours. When a reversal of substance occurs and the price stabilises and turns up for a day or three, the buying opportunity will have presented itself and the time to buy, if you believe in the long term well-being of the firm, will have arrived.
GBPCHF Rising Still.
Since the beginning of this stock market panic in early February, the Swiss Franc has lost 4.52% of its value against the GBP. A very steep movement on a currency pair in a very short time. Foreign exchange assets (aka. FX or currency) usually move in the region of the second place to the right of the decimal point and rightwards. Whole percentage point moves in less than 2 months is rare. A look at the chart however will convince you of the persistence of the trend. Prices for the pair have not reached this level since June 2016. Look for the next resistance point at 1.3168 followed by 1.3757. Upward movement continues on above average volume, indicating continuation of the trend. With the 20 hour EMA well above the 50 hour.
Wheat Falls on Improved Crop Conditions
Price for this field crop has fallen 13.91% since the beginning of the month and is likely to continue doing so on crop conditions that improved in the recent crop report produced by the USDA. Field crops are always volatile due to their crucial role in the food chain and the susceptibility to the vicissitudes of fickle meteorology. Look for a resistance level at 442.00 followed by another at 439. Price is not likely to meet significant resistance at these levels however and therefore we anticipate price continuing to fall to levels of 432 before meeting enough buying to stabilise the price. Weather still can have a role here so stay tuned and keep your eyes wide opened trading the wheat.