Tag Archive Trade

Is Oil Getting Too Expensive Again?

Is Oil Getting Too Expensive Again?

At the pumps, drivers are paying around GBP 1.25 a litre at a known supermarket.

We can see the high of oil back in 2018, then the drop, the support just fell away and the oil price fell heavily before finding the vital support at just above the 4000.0 level.

Recently President Trump had tweeted against OPEC‘s “artificially high prices” perhaps also thinking Is Oil Getting Too Expensive Again? and this has had a recent impact on oil prices.

The recent rally since the low 4 months ago isn’t really a surprise, we know being a commodity oil does often perform in line with the economy.

We also see a positive correlation between stocks and crude oil.

Though oil refiners in the US have processed in the region of 16.32 million barrels per day lower than the 16.55 million at the same time in 2018.

The cut in production is more than likely to have an impact on price following Supply and Demand theory.

Being in a well timed position to take advantage of the oil price, we decided to enter in to a Buy trade, we hope to stay in this position for the long term expecting price to rise further.

We’ll analyse as we go, with a keen eye on President Trump’s tweets.

Is Oil Getting Too Expensive Again?

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 

 

Marks and Spencer Investment




Marks and Spencer Investment.

Once at the centre of the British high street and renowned for it’s quality.

Recently taking it’s turn on the high street to announce a wave of store closures, this has put over 1,000 jobs at risk.

Marks and Spencer has been heading in a downward trend for a long time, their once loyal shoppers are turning away from the retail side over what has been seen as a shun to it’s clothing design, however more people have been opting in the past for it’s food, though this as well as been struggling.

Marks and Spencer has recently gone in to a joint venture with Ocado, a deal worth in the region of £1.8 Billion.

In the face of online competition from the likes of Amazon, and to being late to the online delivery services where the likes of Tescos, ASDA and Iceland already have a foot in the deliver door.

Marks and Spencer has only a limited range of groceries compared to the likes of Tescos and ASDA.

By joining Ocado, the delivery service well known since the early 2000’s Marks and Spencer hope to catch up and sell it’s quality goods to the customer base straight to the doorstep.

On news on the venture Marks and Spencer share price took a hit as the potential cost of the venture to the business became known, can Marks and Spencer afford the cost or have they left it too late.

We had chance to take a sell position before the announcement believing it’s tired business model may be too little too late for the struggling retailer.

Marks and Spencer Investment

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




Oil Price Forecast




Oil Price Forecast.

We decided to take on the trade, believing the oil forecast could enter another Bullish position, due in part to oil prices having lately been buoyed by the supply cuts from Opec.

With the Bears taking full control in recent times, the oil price dropped rather sharp.

Saudi Arabia, a massive oil producer is set to restore the balance in the oil market and make cuts to it’s oil production, it’s forecast to cut to 10.1 million barrels in February from 10.5 million.

This cut has potentially had a positive effect on oil supply and demand, and allowed the Bulls to enter back in to the market and take the oil price back on a potential rally.

The major oil companies like BP and Royal Dutch Shell have been boosted by an increase in the oil price.

Closer to home in the UK, car production fell in December from the November amount of 129,030 units, this could be more to do with other economic factors coming in to play, however if the is sign of more macroeconomic data regarding car production world wide, this could have a major impact on oil.

We’ll be watching carefully.

oil price forecast

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




Will Debenhams be lost from the High Street?




Will Debenhams be lost from the High Street?

The Credit Rating Agency Moody’s recently changed Debenhams outlook to negative from what had been stable, this is because it believes creditors could have risks lending to the store which is currently the latest in a list of struggling department store chains.

Debenhams sales continue to decline in the 18-week period to the beginning of January, with it’s like-for-like sales down 5.7%.

With the high street struggling to compete with online competition, a lot of high street department stores are struggling in a big way and taking a lot of the heavy cost in jobs.

Debenhams loss from the High Street, could be a massive hit, employing 27,000 people with 165 stores, it’s loss could leave an already decimated high street looking even more empty.

From the chart it looks like the short sellers have entered in a large majority, this stock price could take a beating, if Debenhams can be saved, it will have to take some good fortune not just from the high street, but from investors and the restructure of it’s large debt.

We’re taking in this opportunity to take a quick short position, we believe it could continue in a downward trend, at least reaching 2.000 price, and at that price, who knows what could happen.

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




S&P 500 W Trade Pattern




Taking the S&P 500 W Trade Pattern.

From the level we can see in late October, price has now made a bounce back above those level.

When price drops as quickly as it has recently, we get a W pattern, price will rally a bit and then will sell off again to test the previous low.

Now the US Thanksgiving holiday is over, and the markets can return to normal, we may see some buyers enter back in to the market.

Taking a technical view, we can see a positive divergence in the MACD the indicator has posted higher lows, from above where we where in late October, so a positive sign that price could continue in a Bullish direction.

Buyers may be coming in to pick up the pace, and take control from the sellers.

Depending on economic events, we may soon see price for the S&P 500 move passed 2900.00 and reach 3000.00

We’ll keep a close watch on our trade, at the moment we remain positive.

S&P 500 W Trade Pattern

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




Banking on the Yuan




Banking on the Yuan in one of our recent trades.

We had been keeping a close eye on the Yuan reaching the price of around 7 to the Dollar.

The Chinese have in recent times been devaluing their currency to help bolster exports, so we chose to take a long position towards the 7000 area, however this area looks like a strong buffer and price could soon be taking a reverse action from the build up of sellers in the area which we believe to be having an effect at 69713.5.

Noting a trade war between the US and China, could create a space for the Yuan to operate as a rival reserve currency.

We’ve decided to take the money off the table and be grateful for the £199.90 before price heads south.

the Yuan

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




Still Holding for the Sale of Gold




Still holding for the sale of gold.

With the stronger US Dollar and rising US Treasury yields these both put pressure on gold prices, we still believe Gold could still be heading down for the price to touch the 1150 mark.

1150 still looks to be a strong area of Buyers to get in on the sale of gold and buy cheap and take price back up.

Even with a sale of gold, the commodity is still an investment, seen as a safe asset.

For the time being, price has been stuck at around the 1200 price area, and could still contain sellers waiting to drive price further down.

While we wait and keep hold of this trade, we’ll keep an eye on US Dollar and economic data as these could have a major influence on gold price.

sale of gold

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 

Stock Market Tumble Allows More Trade Opportunities




With a stock market tumble allows more trade opportunities.

What a few weeks it’s been, and may still not be over for a while, trade disputes have been stepping up a notch, the mention of around $200 Billion worth of tariffs voiced from Trump and the Beijing reaction from China has meant a stock market tumble recently.

Both Washington and Beijing have stuck to their positions, however we could be upbeat about this, so long as no further trade spat happens or deteriorate between the two.

Not forgetting Brexit, a word close to peoples lips both in the UK and Europe, but also in North America.

We took an opportunity to enter in to some more trades to take advantage of the stock market tumble, with the DAX  we’ve got in to a buy trade on what appears to be a bounce in price, this looks to come from an area of buyers waiting at around the 12000 level, this may last until a possible area of sellers at around 12500.

stock market tumble

(Our trading and image was done using an account with UK based broker IG)

In the FTSE we got in to another buy trade from the move up in price from buyers at around the 7200 to 7300 level, we feel this may go back to pre-economic worries of around and above the 7600 price.

We’ll wait to see what happens when Theresa May is set for talks with the EU on post-Brexit Irish border problems, this could lower the value of the pound, so could potentially help boost the FTSE price.

stock market tumble

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




No Gold Rush at the Moment




No Gold Rush at the moment it would seem.

Gold could still rebound, though in the past few weeks we’ve seen the selling of the gold metal becoming hectic as if it was in an alternative gold rush to sell.

We believe a bounce had been coming hence why we entered the trade, however it could be the bounce is short lived and a continuation of the downtrend.

We entered for a Buy trade to get on the “Gold Rush”, but we don’t feel it will last long due to the position of sellers still, at around the 1200.00 area, price looks like it had a moment of strength to take it back up to that level and the sellers will enter again for another sell off and take price down further to an area we believe to be containing buyers around the 1150.00 area.

We’ll be taking a close watch of current economic events such as the US-China trade talks, as this too will be sure to have an impact on Gold.

Gold Rush

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




FTSE 100 Trading Between Zones




FTSE 100 Trading between zones, we are still in our trade at a profit.

Amid fears of the UK potentially heading for a no deal Brexit, this in turn will weaken the Pound and currently does so, however the FTSE 100 does benefit from a weaker currency.

Other economic news has seen the recent sanctions by the US government on Russia which has led to the commodities selloff,  the FTSE 100 contains a number of mining and oil stocks, a lot of these can be effected by Commodities in Russia.

With note of the economics, for a while the FTSE 100 trading has mostly been contained to between the two zones, an area of support holding buyers at around the 7600.00 price, while the area around the 7800.00 has been keeping the FTSE 100 in check and acting as resistance stopping further upward movement.

The large amount of sellers at around the 7800.00 will need to be weakened if the FTSE 100 is going to reach the 8000.00 price mark.

FTSE 100 Trading

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 




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