FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 16 November 2022

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 16 November 2022

Technical Analysis

Asian stock market stands in green on Tuesday. The Shanghai Composite is up 1.64% at 3134.08 Overall, the Singapore MSCI is up 3.06% at 300.05. Over in Hong Kong, the Hang Seng Index is up 4.11% at 18,343.12. In Japan, the Nikkei 225 is up 0.10% at 27990.17, while the Topix index is up 0.37% at 1964.22 South Korea’s Kospi is up 0.23% at 2,480.33. Australia S&P/ASX 200 down 0.066% at 7141.60.

Top News of the Day:

Wall Street’s main indexes jumped on growing evidence of cooling inflation bolstered hopes of smaller rate hikes by the Federal Reserve, while

Data showed U.S. producer prices increased less than expected, rising 8% in the 12 months through October against an estimated 8.3% rise, according to a Reuters poll of economists.

The report follows a softer-than-expected consumer prices reading late last week, which sparked a massive rally on hopes that the Fed would tone down its aggressive monetary policy approach that has roiled markets this year.

Following the latest data, traders’ bets of a 50-basis points rate hike in December surged to 91% compared with 71.5% last week.

“Going into the final months of the year, this (the inflation data) gives the Fed a chance to go from at least 75 to 50 basis points and potentially even further,” said Phil Blancato, chief executive of Ladenburg Thalmann Asset Management in New York.

Market Summary as per 15/11/2022:

European equities Tuesday closing. The DAX futures contract in Germany traded up 0.46% at 14378.51, CAC 40 futures up 0.49% at 6641.66. and the UK 100 futures contract in the U.K. down 0.21% at 7369.44.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed 0.17% at 33529.92. The S&P 500 up 0.87% at 3991.73 and the Nasdaq 100 also up 1.45% at 11358.41, NYSE closes 1.00% at 15381.0.

Top Market News Today:

In the Forex market, GBPUSD up 0.09% at 1.1869. The USDJPY up 0.28% at 139.71 The USDCHF down 0.01 at 0.9441. EURUSD up 0.23% at 1.0373. EUR/GBP up 0.21% at 0.8741. The USD/CNY up 0.50% at 7.0801 at the time of writing.

In the Commodity market U.S. Gold futures down at 0.26% $1,774.10. Elsewhere, Silver futures down 0.16% at $21.526 per ounce, Platinum down 0.10% at $1024.90 per ounce, and Palladium down 0.61% at $2088.0.

Brent Crude Oil down 0.59% at $93.33 per barrel.

In the Cryptocurrency Markets, Bitcoin at 16909.30 up 0.17%, Ethereum up 0.40% at 1256.09, Litecoin at 59.90 up 3.36%, at the time of writing.

Top Market Segment to Watch Out Today:

Walmart: Shares of Walmart Inc. shot up 6.6% toward a six-month high in premarket trading Tuesday, after the discount retail behemoth swung to a net third-quarter loss, due to $3.3 billion in charges related to opioid legal settlements, but adjusted profit, revenue and same-store sales that were well above expectations and a full-year outlook that was above forecasts. The net loss for the quarter to Oct. 31 was $1.80 billion, or 66 cents a share, after net income of $3.11 billion, or $1.11 a share, in the year-ago period

Economic News:

US:  Americans continued to take on debt during the fourth quarter amid a surge in credit card borrowing, even as they backed away from new mortgages in a rapidly rising interest rate environment, the Federal Reserve Bank of New York said Tuesday.

The bank said in its quarterly report on household debt and credit that total borrowing during the third quarter increased by $351 billion from the prior quarter to $16.51 trillion. Overall borrowing is $2.36 trillion higher than the level seen at the end of 2019, before the coronavirus pandemic struck and scrambled the economy.

“Credit card, mortgage, and auto loan balances continued to increase in the third quarter of 2022 reflecting a combination of robust consumer demand and higher prices,” said Dong-Hoon Lee, a New York Fed research advisor, in a press release. “However, new mortgage originations have slowed to pre-pandemic levels amid rising interest rates.”

The researchers flagged high car prices, more expensive homes and elevated gasoline prices as all having helped push up how much Americans have been borrowing.

The report said that mortgage originations, which include refinancing existing loans, fell by $126 billion from the second quarter and stood at $633 billion during the third quarter. The bank said that current activity in the market to create new mortgages resembles the conditions seen before the pandemic struck. It also said that home foreclosure rates remained low.

That said, overall mortgage debt during the third quarter rose by $282 billion and hit $11.67 trillion at the end of September, the New York Fed said.

Euro Zone:

British foreign minister James Cleverly said he did not yet see a route for the resolution of problems with post-Brexit trade rules for Northern Ireland.

Cleverly told a committee of lawmakers that while there was a better atmosphere around talks with the European Union on the so-called Northern Ireland protocol, it would not be easy to address all the issues.

“I don’t yet see a route through that. We’re still looking and if we can find one, I’m very, very happy to, but those concerns are there,” he said.

Technical talks resumed in early October for the first time in seven months on the protocol, the part of the Brexit deal that mandated checks on some goods moving to Northern Ireland from the rest of the United Kingdom due to the province’s open land border with EU member Ireland.

 Irish Foreign Minister Simon Coveney said he believed a deal could be done between Britain and the EU before the end of the year.

Cleverly said the two sides were working on establishing mutual trust and he hoped some issues could be resolved by looking at the “pragmatic reality” of what happens on the ground in the province rather than focusing on theoretical risks.

“A good working relationship, regular conversations, goodwill and trust are necessary but not sufficient,” he told the committee.

Top Economic Releases Today:

  1. USD: Retail Sales (MoM) (Oct) Forecast 1.0 %, Previous 0.0% at 19:00
  2. USD: Core Retail Sales (MoM) (Oct) Forecast 0.4%, Previous 0.1% at 19:00
  3. ECB: ECB President Lagarde Speaks at 20:30
  4. GBP: Inflation Report Hearings at 19:45
  5. CAD: Core CPI (MoM) (Oct) Previous 0.4 at 19:00

TECHNICAL ANALYSIS

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTIONBUY AT 1.19166, TAKE PROFIT AT 1.20367, SL AT 1.8015

EURUSD TECHNICAL ANALYSIS

TRADE SUGGESTION BUY AT 1.03700, TAKE PROFIT AT 1.04540, SL 1.03054

USDJPY TECHNICAL ANALYSIS

TRADE SUGGESTIONSELL AT 138.514, TAKE PROFIT AT 137.229, SL AT 140.197

AUDUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 0.67750, TAKE PROFIT AT 0.68651, SL AT 0.66989

FTSE 100 INDEX TECHNICAL ANALYSIS

TRADE SUGGESTION BUY AT 7370.7, TAKE PROFIT AT 7432.9, SL AT 7313.3

BRENT CRUDE OIL TECHNICAL ANAYSIS

TRADE SUGGESTION SELL AT 92.12, TAKE PROFIT AT 89.96, SL AT 94.35

GOLD TECHNICAL ANALYSIS

TRADE SUGGESTIONBUY AT 1785.27, TAKE PROFIT AT 1861.20, SL AT 1762.36

ETHEREUM TECHNICAL ANALYSIS

TRADE SUGGESTIONSELL AT 1228.35, TAKE PROFIT AT 1170.28, SL AT 1290.29

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