Nvidia (NVDA) Shares Fall Despite Strong Earnings
Yesterday, after the close of the main trading session, Nvidia released its second-quarter earnings report:
→ Earnings per share: actual = $0.67, expected = $0.647;
→ Revenue: $30.04 billion, expected = $28.737 billion;
→ The company also announced a $50 billion share buyback.
However, despite the strong results, Nvidia’s share price declined. While the closing price yesterday was above $125, in pre-market trading today, Nvidia’s shares are down below $118.
The more than 6% drop may be due to:
→ The company’s future outlook not meeting investor expectations;
→ Waning bullish sentiment around AI adoption.
On 12 August, during a technical analysis of NVDA’s price chart, we noted:
→ The price was forming an upward channel (indicated in blue);
→ The $100 level was acting as support.
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EUR/USD Falls Below 1.11 Support
On 26 August, we discussed the potential for a pullback after the rally to 1.12, noting:
→ The fluctuations since April formed an ascending channel (indicated in blue, with support points marked by circles), and the price was near its upper boundary, where resistance was likely;
→ The 1.12 level also showed signs of resistance – the price briefly exceeded it before quickly falling back below; → Bearish divergence on the RSI indicator.
Just three days later, bearish signals continued to develop, leading to:
→ The formation of a bearish “head and shoulders” pattern (H&S) on the chart;
→ A more than 1% decline in price, breaking below the 1.11 level, which had provided support since 21 August.
Could EUR/USD continue to decline?
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Double Top Pattern: Overview and Trading Rules
A double top is a popular technical analysis pattern that usually appears before a reversal in an uptrend. It’s one of the most common patterns and it can be found on any timeframe of any asset. Still, some traders confuse its signals. In this FXOpen article, we will explore how to spot the double top formation on a price chart and use it to build your own trading strategy.
What Is a Double Top Pattern?
In technical analysis, a double top pattern meaning refers to a chart pattern that consists of two swing highs with a trough in between, and the two highs should be at the same or almost the same level. Some traders confuse a double top with a double bottom formation. Therefore, the question “Is the double top bullish or bearish?” is common. The double top pattern appears at the end of an uptrend, and it’s always bearish. Conversely, the double bottom setup occurs at the end of a downtrend, and it’s always bullish.
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RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.
Analytical USD to JPY Predictions in 2024, 2025 and Beyond
Understanding the future movements of the USD/JPY exchange rate is crucial for anyone looking to trade this fascinating pair. In this article, we analyse the economic outlook for 2024 and 2025, looking at expert forecasts to examine the impact of divergent monetary policies and economic conditions in the US and Japan. Dive in to discover how these factors might shape the currency pair’s trajectory and what USD/JPY predictions are for the coming years.
Recent USD/JPY History
Since 2019, the USD/JPY exchange rate has experienced notable fluctuations, driven by various economic events and monetary policies.
The year 2019 started with USD/JPY at around 108.62. Throughout the year, the exchange rate gradually increased, peaking at approximately 112.40 in April. However, by the end of the year, it settled around 108.50, influenced by global trade tensions and monetary policies from both the Federal Reserve and the Bank of Japan.
The onset of the COVID-19 pandemic in March 2020 brought significant volatility. As news gripped the markets, the USD to JPY rate slumped to a low of around 101.20 before rebounding to 111.70 around a week later, favouring the security of the USD against JPY.
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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.
Market Analysis: AUD/USD and NZD/USD Regain Strength
AUD/USD is consolidating gains from the 0.6825 zone. NZD/USD is showing positive signs and might attempt a fresh increase above 0.6275.
Important Takeaways for AUD USD and NZD USD Analysis Today
- The Aussie Dollar rallied above the 0.6735 and 0.6750 resistance levels against the US Dollar.
- There is a key bullish trend line forming with support at 0.6795 on the hourly chart of AUD/USD at FXOpen.
- NZD/USD is correcting gains from the 0.6300 zone.
- There is a major bullish trend line forming with support at 0.6255 on the hourly chart of NZD/USD at FXOpen.
AUD/USD Technical Analysis
On the hourly chart of AUD/USD at FXOpen, the pair started a fresh increase from the 0.6700 support. The Aussie Dollar was able to clear the 0.6735 resistance to move into a positive zone against the US Dollar, as mentioned in the previous analysis.
There was a close above the 0.6750 resistance and the 50-hour simple moving average. Finally, the pair tested the 0.6825 zone. A high was formed near 0.6824 and the pair recently saw a minor pullback.
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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Buffett’s Company Hits $1 Trillion Market Cap
Berkshire Hathaway’s (BRK.B) Class B shares surpassed $465 this week, while Class A shares exceeded $700,000, pushing the market capitalisation of Warren Buffett’s company past the $1 trillion mark. This milestone makes it the first non-tech U.S. company to join the trillion-dollar club, alongside Apple, Nvidia, Microsoft, Alphabet, Amazon, Meta, and Saudi Aramco.
Buffett’s success lies in his value investing philosophy, which has allowed him to build a portfolio that consistently outperforms the market. This month is no exception—while the S&P 500 (US SPX 500 mini on FXOpen) has rebounded about 9.4% from its 5 August low, Berkshire Hathaway’s Class B shares have surged over 14%.
Can the price climb even higher?
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USD/CHF Rebounds from Yearly Lows
The USD/CHF pair tested its yearly low slightly below 0.84100 yesterday but has since recovered to just above 0.84800 today.
The bullish sentiment was supported by positive news about the U.S. economy—data released yesterday showed GDP growth for the second quarter at 3.0%, surpassing the expected 2.8%.
Bulls may find further encouragement from events earlier this year when the head of the Swiss National Bank (SNB) warned that an excessively strong franc could pressure the country’s economy. Following this, USD/CHF rose by more than 8% over four months.
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Watch FXOpen’s 26 - 30 August Weekly Market Wrap Video
Weekly Market Wrap With Gary Thomson: EUR/USD, NASDAQ 100, NVIDIA, Gold and Oil
Get the latest scoop on the week’s hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.
- EUR/USD falls below 1.11 support
- NASDAQ 100 consolidates ahead of NVIDIA report
- NVIDIA (NVDA) shares fall despite strong earnings
- Market analysis: Gold and Oil prices signal more upsides
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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.
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Rising Wedge Pattern: Trading Rules and Strategies
Numerous technical analysis patterns indicate a reversal in market trends. A rising wedge is a formation that helps traders spot price reversals. This FXOpen article will explain how to identify a rising wedge to analyse market trends and explore whether it provides bullish or bearish signals.
What Does a Rising Wedge Signify?
A rising wedge, also known as the ascending wedge, is a technical analysis chart pattern. The wedge appears when the upper and lower trendlines connecting the higher highs and higher lows converge with the gap squeezing towards the intersecting point.
Is the ascending wedge bullish or bearish? It’s a bearish formation, which is usually considered a reversal setup that is formed in an uptrend, signalling a reversal of a market trend. Still, it can occur in a downtrend, signalling a continuation of an existing bearish trend. Buyers push the price from the downside and face resistance in breaking it towards the upside, which finally triggers a move in the opposite direction.
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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.
September – The Worst Month for the S&P 500
August was a turbulent month for the US stock market. On the 5th, the S&P 500 (US SPX 500 mini on FXOpen) experienced its largest daily drop since 2022, falling by 3%. However, the index ended August up by 3.7% and is now just 0.3% below its all-time high of around 5672 set in July.
What can we expect in September? Historically, it is the worst month for the S&P 500 (US SPX 500 mini on FXOpen). Statistics show that the index has typically declined by an average of 1.1% in September.
The month starts with a long weekend due to Labour Day in the US, but volatility is likely to increase as traders return from their holidays.
Technical analysis of the S&P 500 (US SPX 500 mini on FXOpen) shows:
→ The price is moving within an ascending channel (shown in blue), having tested the lower boundary of the channel on 5 August before returning to the upper half of the channel with a wide candle on 15 August (shown by the arrow).
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Hammer Candlestick: Meaning and Signals
Technical analysis is a commonly used approach in the financial markets. It involves studying historical price data to make informed trading decisions. Among the various tools and formations employed in technical analysis, the hammer candlestick pattern stands out as a powerful tool. This article will delve into the meaning of the hammer candlestick pattern and explain how traders can interpret it on a forex, stock, and crypto* price chart.
What Is a Hammer Candle?
A hammer is a price formation that is found on trading charts. It occurs at the end of a downtrend and acts as a bullish reversal signal.
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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.
The Price of Intel (INTC) Shares Rose By 9.5% in a Day
The reason for the optimism is a report from Reuters that CEO Pat Gelsinger is planning to present a comprehensive plan to the board of directors in mid-September:
→ Special attention will be given to reducing capital expenditures, which is part of a broader effort to revitalise the chipmaker, whose shares have experienced a dramatic decline. It’s worth noting that on 2 August, the price of Intel (INTC) shares dropped by 26% in a single day following the release of disappointing quarterly results and projections, which greatly disheartened investors.
→ The plan also considers the sale of businesses, including the Altera division. Reportedly, Intel has enlisted Morgan Stanley and Goldman Sachs to advise on the sale of these assets.
→ Additionally, Intel aims to reduce its workforce by more than 15%, with the majority of the cuts expected to be completed by the end of 2024.
Investors were encouraged by the news that the management is ready to take decisive action. As Gelsinger recently stated, “We respect the scepticism we’ve received from the market. We believe we’re ready to meet the challenge.”
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XAG/USD Analysis: Bulls May Target $30 Again
As the XAG/USD chart indicates today, the price of silver has dropped by over 5% in the past week. Bearish signs are also evident in the price of gold. According to Reuters, market participants are focusing on a series of economic data set to be released this week, which could influence expectations regarding a potential rate cut at the Federal Reserve’s September meeting.
Could the price of silver continue to decline? Technical analysis of the XAG/USD chart shows that since late May, the price of silver has been forming a structure resembling a fan of three expanding lines, marked in red.
Bullish Arguments:
→ The price has broken through the red median line and moved into the upper half of the fan.
→ The price is near the bullish breakout level of the median line, which may provide support.
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How Do Traders Spot and Use the Dragonfly Doji Candlestick Pattern?
The dragonfly doji candlestick pattern holds intrigue and fascination for traders in financial markets. Its distinct shape and positioning on price charts make it a keen subject for observation and analysis. In this article, we will explore this setup, its significance, and how traders use it in their trading strategies.
What Does a Dragonfly Doji Mean?
The red or green dragonfly doji is a candlestick pattern that forms when the opening, closing, and high prices of an asset are equal or almost equal. This formation resembles the shape of a dragonfly because it has an extended lower shadow. It provides bullish signals and is considered a neutral pattern as it provides continuation and reversal signals, depending on its context within a trend. The meaning of a dragonfly doji is that there is uncertainty in the market, and traders are prompted to carefully analyse other factors before making trading decisions.
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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.
Commodity Currencies Retreat from Recent Highs
The first trading week of September is packed with significant macroeconomic data releases. On Friday, the US employment report is expected, tomorrow the Bank of Canada will announce its interest rate decision, and the US non-manufacturing PMI and crude oil inventory data will also be published. In anticipation of this data mix, the Canadian and Australian currencies have retreated from their recent highs and are currently in a phase of corrective decline. Let’s consider the potential scenarios for the upcoming trading sessions.
USD/CAD
Technical analysis of USD/CAD indicates the potential for a deeper upward correction, as a “bullish engulfing” pattern has formed on the daily timeframe. If the 1.3500 level holds as support, the pair could continue to rise towards 1.3620-1.3580. A drop below 1.3490-1.3470 would invalidate the bullish scenario.
Today, investors and market participants are awaiting the Bank of Canada’s interest rate decision. It is expected that the rate will be reduced by 0.25% to 4.25%. Given the pair’s movement in recent days, this decision seems to be priced in. What will be important for investors are the Canadian regulator’s future plans, including the timing and scale of the next rate cut.
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Nvidia (NVDA) Shares Among the Biggest Losers
On July 31, US labour market data was released, which proved disappointing and contributed to a decline in the Nasdaq 100 index (US Tech 100 mini on FXOpen) by over 10% between August 1 and 5.
This heightens the importance of the upcoming labour market data release, scheduled for tomorrow (15:15-15:30 GMT+3). It seems that concerns are growing among market participants that the news could reveal further negative trends.
This could explain the sell-off that gripped the US stock market yesterday. The Nasdaq 100 index (US Tech 100 mini on FXOpen) dropped by more than 3%, with Nvidia (NVDA) shares losing over 9% of their value.
In the first half of 2024, NVDA was a growth leader, but now it is among the biggest decliners—a bearish signal that suggests the price decline could continue. If so, how significant could it be?
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Brent Crude Oil Price Hits Yearly Low
Analyzing the oil market on the XBR/USD chart from August 26, when Brent crude was trading around $79 per barrel, we observed the following:
→ The price was forming a descending channel (shown in red) and approaching its upper boundary, which could act as resistance.
→ We identified a key support level (shown in yellow).
→ We suggested that the bulls would need to prove their determination when facing a block of resistance around the $80 level.
Since then, Brent crude oil has:
→ Reversed downward, failing to hold above the $80 level, and continued to decline within the red channel.
→ Accelerated its decline, breaking through the key support around the $75 level.
Bearish sentiment was fueled by OPEC+ plans to increase oil production, signaling a shift away from production cuts aimed at maintaining higher prices.
Could Brent Crude Oil Continue to Decline?
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Understanding the Inverse Cup and Handle Chart Pattern
Understanding chart patterns is fundamental for market participants. This article delves into the inverse cup and handle formation, a bearish signal indicating a potential downward movement. Explore its identification, trading strategies, psychological underpinnings, common pitfalls, and more to boost your trading knowledge.
What Is the Inverse Cup and Handle Pattern?
The inverse cup and handle, sometimes called an upside-down cup and handle pattern, is a bearish chart pattern that may appear during up- and downtrends. It is the opposite of the traditional cup and handle pattern, which is bullish. The inverse formation consists of two main parts: the “cup,” which is an inverted U-shape, and the “handle,” a small upward retracement following the cup.
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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
RISK WARNING: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgement as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.
Market Analysis: EUR/USD Eyes Fresh Increase, USD/JPY Trims Gains
EUR/USD started a fresh decline from 1.1200. USD/JPY is correcting gains and might test the 144.15 support in the near term.
Important Takeaways for EUR/USD and USD/JPY Analysis Today
- The Euro started a fresh decline below the 1.1150 support.
- There is a key bearish trend line forming with resistance at 1.1055 on the hourly chart of EUR/USD at FXOpen.
- USD/JPY struggled near 147.20 and recently started a downside correction.
- There was a break below a major bullish trend line with support at 145.80 on the hourly chart at FXOpen.
EUR/USD Technical Analysis
On the hourly chart of EUR/USD at FXOpen, the pair started a fresh decline from the 1.1200 zone. The Euro declined below the 1.1150 support zone to enter a bearish zone against the US Dollar.
The pair even settled below the 1.1110 zone and the 50-hour simple moving average. A low was formed near 1.1026 and the pair is now correcting losses. It is now approaching the 23.6% Fib retracement level of the recent decline from the 1.1190 swing high to the 1.1026 low.
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The Pound Approaches Recent Highs: What Could Happen Next?
GBP/USD
After a sharp rise at the end of August, the British currency corrected to a key support level around 1.3100. At the start of the week, sterling sellers attempted to push through this support, but so far without success. A false breakout of the 1.3100 level, followed by a rebound, allowed buyers to form a bullish engulfing pattern.
If the 1.3100 level holds, the GBP/USD pair may consolidate around the recent highs in the 1.3240-1.3200 range. A deeper downward correction could occur if the pair breaks below 1.3100. In the coming trading sessions, we might see a surge in volatility as several important macroeconomic reports are expected:
- Today at 11:30 (GMT +3:00) – UK Construction PMI for August;
- Today at 15:15 (GMT +3:00) – US ADP Nonfarm Employment Change;
- Today at 16:45 (GMT +3:00) – US Services PMI.
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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
