FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 25 October 2022

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 25 October 2022

Technical Analysis

Oil gains as U.S. dollar eases

Asian stock markets recovered from recent losses on Tuesday. The Shanghai Composite is up 0.27% at 2,985.69. Overall, the Singapore MSCI is up 0.91% at 266.95. Over in Hong Kong, the Hang Seng Index is up 0.64% at 15,237.00. In Japan, the Nikkei 225 is up 1.11% at 27,260.00, while the Topix index is up 1.30% at 1908.50. South Korea’s Kospi is down 0.08% at 2,234.33. Australia S&P/ASX 200 up 0.28% at 6798.60.

Top News of the Day:

Oil prices rose on Tuesday as the U.S. dollar eased against major peers but gains were limited by worries of slowing global fuel demand growth amid bearish economic data from key oil importing economies such as China.

However, signs of uncertain economic activity in the United States and China, the world’s two biggest oil consumers, limited the increase.

Market Summary as per 24/10/2022:

European equities Monday closing. The DAX futures contract in Germany traded up 1.58% at 12,931.45, CAC 40 futures up 1.59% at 6131.37 and the UK 100 futures contract in the U.K. up 0.64% at 7014.00.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 1.34% at 31499.63. The S&P 500 up 1.19% at 3797.35 and the Nasdaq 100 up 1.06% at 11430.26, NYSE closes up 0.58% at 14226.10.

Top Market News Today:

In the Forex market, GBPUSD up 0.03% at 1.1279. The USDJPY flat at 148.939. The USDCHF up 0.04% at 1.0009. EURUSD down 0.16% at 0.9870, EUR/GBP down 0.05% at 0.8750. The USD/CNY up 0.62% at 7.3076 at the time of writing.

In the Commodity market U.S. Gold futures up 1.52% at $1,647.87. Elsewhere, Silver futures down 0.15% at $19.184 per ounce, Platinum down 0.65% at $918.00 per ounce, and Palladium up 0.61% at $1982.00.

Crude Oil down on Tuesday; Brent Crude Oil down 0.20% at $91.22 per barrel while U.S. West Texas Intermediate (CLc1) down 0.31% at $84.32.

In the Cryptocurrency Markets, Bitcoin at 19305.00 down 0.18%, Ethereum up 0.39% at 1349.10, Litecoin at 52.83 up 0.44%, at the time of writing.

Top Market Segment to Watch Out Today:

SAP: Business software maker SAP reported slower than expected revenue growth and a drop in profits for the third quarter, citing lower contribution from software licenses revenue as well as investments in growth.

Total revenue grew by 5% in currency-adjusted terms to 7.84 billion euros, SAP said on Tuesday, missing analyst consensus for a jump to 8.49 billion.

Economic News:

US: The biggest risk to Japan’s economy over the next year is a prolonged period of U.S. monetary tightening, although the world’s third-largest economy is unlikely to sink into a recession, the majority of economists polled by Reuters said.

Tuesday’s survey result came as Japan struggles to prop up its currency from a 32-year-low against the dollar, largely blamed on diverging yields between the United States and Japan.

Of the 29 economists who responded to the question of what posed the greatest risk to Japan’s economy in the coming year, 17, or 59%, chose longer-than-expected rate hikes by the Federal Reserve, the Oct. 11-20 survey showed.

The Fed’s aggressive rate action would prolong and deepen the U.S. recession, which would spill over to the global economy and in turn hit Japanese exports, said Harumi Taguchi, principal economist at S&P Global (NYSE:SPGI) Market Intelligence.

Policymakers worldwide, including the International Monetary Fund, have cut global growth projections for 2023, citing elevated prices and higher cost of borrowing.

Euro Zone: The euro zone is likely entering a recession with business activity contracting at the fastest pace in nearly two years this month as the cost-of-living crisis keeps consumers cautious and saps demand, a survey showed on Monday.

Factories have been particularly hard hit by energy price rises and due to supply chains still recovering from the coronavirus pandemic taking a hit from Russia’s invasion of Ukraine.

S&P Global (NYSE:SPGI)’s euro zone flash composite Purchasing Managers’ Index (PMI), seen as a good guide to overall economic health, fell to 47.1 from 48.1 in September, below expectations for 47.5 in a Reuters poll.

October was the fourth month below the 50-mark separating growth from contraction and was the lowest reading since November 2020.

High energy costs meant the downturn in the German economy, Europe’s largest, deepened in October and the rate of manufacturing contraction was at its fastest in two-and-a-half years.

Top Economic Releases Today:

  1. U.S. CB Consumer Confidence (Oct) today at 10:00 this time estimated 106.5, previously which was 108.0.
  2. 30 this time estimated 1.60%, previously which was 1.80%.
  3. U.K. Industrial Trends Orders (Oct) today at 06:00 this time estimated -12, previously which was -2.
  • JAPAN BoJ Core CPI (YoY) at 01:00 this time estimated 1.90%, previously which was 1.90%.
  • GERMANY Ifo Business Climate Index (Oct) today at 04:00 this time estimated 83.30, previously which was 84.30.

TECHNICAL SUMMARY

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 1.1296, TAKE PROFIT AT 1.1454 AND STOP LOSS AT 1.1215

EURUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 0.9868, TAKE PROFIT AT 0.9895 AND STOP LOSS AT 0.9850

GBPJPY TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 168.076, TAKE PROFIT AT 169.454 AND STOP LOSS AT 167.170

CHFJPY TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 148.726, TAKE PROFIT AT 149.800 AND STOP LOSS AT 148.274

CAC 40 TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 6168.20 TAKE PROFIT AT 6249.40 AND STOP LOSS AT 6118.90

WTI CRUDE OIL TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 84.67 TAKE PROFIT AT 83.00 AND STOP LOSS AT 85.80

GOLD TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 1649.00, TAKE PROFIT AT 1643.28 AND STOP AT 1653.64

LITECOIN TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 52.689 TAKE PROFIT AT 54.384 AND STOP AT 52.077

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