FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 26 October 2022

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 26 October 2022

Technical Analysis

European Stock Futures Edge Lower

Asian stock markets extended gains on Wednesday. The Shanghai Composite is up 0.49% at 2,990.83. Overall, the Singapore MSCI is up 0.99% at 269.30. Over in Hong Kong, the Hang Seng Index is up 0.38% at 15,227.00. In Japan, the Nikkei 225 is up 0.62% at 27,430.00, while the Topix index is up 0.50% at 1918.00. South Korea’s Kospi is up 0.70% at 2,250.70. Australia S&P/ASX 200 up 0.18% at 6810.90.

Top News of the Day:

European stock markets are expected to open with minor losses Wednesday, weighed by disappointing earnings overnight from U.S. tech giants Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT), while investors digest more quarterly earnings from the European banking sector, and from Deutsche Bank in particular.

European equity markets are set to suffer a negative read across from a fall in U.S. futures overnight after a disappointing start to Big Tech earnings week.

Market Summary as per 25/10/2022:

European equities Tuesday closing. The DAX futures contract in Germany traded up 0.94% at 13,052.96, CAC 40 futures up 1.94% at 6250.56 and the UK 100 futures contract in the U.K. down 0.01% at 7013.49.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 1.07% at 31836.75. The S&P 500 up 1.63% at 3859.10 and the Nasdaq 100 up 2.10% at 11669.99, NYSE closes up 1.51% at 14440.69.

Top Market News Today:

In the Forex market, GBPUSD up 0.06% at 1.1473. The USDJPY up 0.02% at 147.938. The USDCHF down 0.10% at 0.9932. EURUSD up 0.13% at 0.9974, EUR/GBP up 0.08% at 0.8692. The USD/CNY down 0.03% at 7.2667 at the time of writing.

In the Commodity market U.S. Gold futures up 1.58% at $1,662.59. Elsewhere, Silver futures up 1.22% at $19.558 per ounce, Platinum up 0.71% at $921.50 per ounce, and Palladium up 1.61% at $1961.00.

Crude Oil down on Wednesday; Brent Crude Oil down 0.49% at $90.81 per barrel while U.S. West Texas Intermediate (CLc1) down 0.36% at $84.29.

In the Cryptocurrency Markets, Bitcoin at 20235.00 down 0.34%, Ethereum up 2.10% at 1490.80, Litecoin at 56.05 up 0.20%, at the time of writing.

Top Market Segment to Watch Out Today:

Deutsche Bank: Deutsche Bank (ETR:DBKGn) on Wednesday posted a better-than-expected 475% jump in third-quarter profit as investment banking revenues rose thanks to a trading boom and despite a slump in dealmaking.

Economic News:

US: U.S. Senate Banking Committee Chair Sherrod Brown on Tuesday urged Federal Reserve Chair Jerome Powell to be careful about tightening monetary policy so much that millions of Americans already suffering from high inflation also lose their jobs.

“It is your job to combat inflation, but at the same time, you must not lose sight of your responsibility to ensure that we have full employment,” Brown said in the letter, also addressed to the Fed’s Board of Governors and released publicly by Brown’s office. “We must avoid having our short-term advances and strong labor market overwhelmed by the consequences of aggressive monetary actions to decrease inflation, especially when the Fed’s actions do not address its main drivers.”

Fed policymakers are widely expected to deliver a fourth straight supersized interest-rate hike when they meet next week, bringing the policy rate to 3.75%-4% as part of what has been the sharpest set of rate increases in about 40 years.

Brown’s letter did not explicitly ask Powell or the Fed to slow or stop rate hikes, though it did urge “continued caution” in light of the synchronized monetary policy tightening by central banks around the world and Russia’s war in Ukraine among other factors posing the “real possibility of worsening the global economic situation.”

Euro Zone: Newly confirmed finance minister Jeremy Hunt must keep investors calm about Britain’s debt mountain, avoid causing a deep recession and work out a way to stop the Conservative Party from splintering again – and all of it by next Monday.

Hunt, re-appointed to his job by new Prime Minister Rishi Sunak on Tuesday, is due to announce a budget plan on Oct. 31.

The two men hope it will bury Britain’s recent economic policy experiment under former leader Liz Truss that triggered a historic bond market slump and made Truss the shortest-lived prime minister in history.

Hunt, a former foreign and health minister, was rushed in as Truss’s new finance minister after she fired her friend and fellow low-tax disciple Kwarteng less than two weeks ago in a bid to appease the markets.

Hunt immediately ripped up Truss and Kwarteng’s programme, reversing most of its 45 billion pounds of tax cuts, and he warned of tough decisions ahead to restore Britain’s economic credibility.

Top Economic Releases Today:

  1. U.S. Crude Oil Inventories today at 10:30 this time estimated 1.029M, previously which was -1.725M.
  2. 00 this time estimated 4.00%, previously which was 3.25%.
  3. AUSTRALIA Export Price Index (QoQ) (Q3) today at 20:30 previously which was 10.1%.
  • JAPAN BoJ Outlook Report (YoY) at 23:00.
  • RUSSIA Industrial Production (YoY) (Sep) today at 11:00 this time estimated –1.0%, previously which was -0.1%.

TECHNICAL SUMMARY

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 1.1477, TAKE PROFIT AT 1.1597 AND STOP LOSS AT 1.1352

EURUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 0.9976, TAKE PROFIT AT 1.0030 AND STOP LOSS AT 0.9951

USDJPY TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 147.222, TAKE PROFIT AT 146.659 AND STOP LOSS AT 147.868

USDCHF TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 0.9877, TAKE PROFIT AT 0.9785 AND STOP LOSS AT 0.9939

FTSE 100 TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 7010.80 TAKE PROFIT AT 7029.40 AND STOP LOSS AT 6992.50

WTI CRUDE OIL TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 85.20 TAKE PROFIT AT 83.09 AND STOP LOSS AT 85.87

GOLD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 1670.19, TAKE PROFIT AT 1680.24 AND STOP AT 1660.05

BITCOIN TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 20388.36 TAKE PROFIT AT 20854.55 AND STOP AT 19979.97

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