Daily Market Analysis By FXOpen

[FXOpenTeam]

S&P 500 Reaches Another Record High

As shown by the S&P 500 chart (US SPX 500 mini on FXOpen), the leading US stock index set its 45th record of the year, closing above 5800 on Friday. This marks the fifth consecutive week of growth, with the index up more than 22% since the start of the year.

According to Reuters, the bullish market sentiment is driven by the start of Q3 earnings season, with companies possibly issuing bolder forecasts due to the beginning of the Fed’s rate-cutting cycle.

What are the prospects for the index until the end of 2024?

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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.

[FXOpenTeam]

Mastering the Harmonic Bat Pattern

The harmonic bat pattern is a powerful tool for traders seeking to pinpoint market reversals with precision. Using Fibonacci ratios to map out key price movements, this pattern offers traders the chance to enter high-probability trades. In this article, we’ll break down the bat pattern’s structure, how to identify and trade it, and common mistakes to avoid.

Basics

There are many approaches and tools that can be applied to trading. They can mainly be divided into technical and fundamental. When it comes to technical analysis there are indicators, candlestick and chart patterns, Elliott wave theory, Wyckoff method, and more.

With each talented analyst making chart observations, a new approach is born. This is also the case with Harmonics. They were first introduced in 1930 by H.M. Gartley in his book “Profits in the Stock Market” which is why the first pattern was named Gartley.

At first, Fibonacci ratios weren’t applied to pattern recognition but other market analysts later built upon this. Namely, it was Larry Pesavento who introduced Fib levels to define and distinguish Harmonic formations, and finally, Scott M. Carney defined all the variations according to those rules and ratios.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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.

[FXOpenTeam]

JPMorgan (JPM) Shares Rise Over 4% Following Earnings Report

On Friday, before the market opened, JPMorgan (JPM) released its Q3 earnings, which exceeded expectations:

→ Earnings per share: Expected = $3.99, Actual = $4.97
→ Revenue: Expected = $41.4 billion, Actual = $43.4 billion

CEO Jamie Dimon praised the strong results but issued several cautionary statements. He noted:

→ Geopolitical risks are rising rapidly. “We have been closely monitoring the geopolitical situation for some time, and recent events show that conditions are dangerous and deteriorating.”

→ “While inflation is easing and the US economy remains resilient, several critical challenges persist, including a large budget deficit, infrastructure needs, trade restructuring, and the remilitarisation of the world.”

Despite Dimon’s caution, investors responded positively to JPMorgan’s strong results, pushing JPM shares up more than 4% on Friday.

Year-to-date, the stock has gain

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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.

[FXOpenTeam]

Understanding Fibonacci Extensions

Have you ever noticed that market movements often occur in repeatable patterns? Well, that’s where Fibonacci extensions come into play. Join us in this article as we dive into the world of Fibonacci extensions and discover how they can be a strong addition to your trading arsenal.

A Primer on Fibonacci Ratios

Fibonacci ratios originate from the Fibonacci sequence, where each number is the sum of the two preceding ones (e.g., 0, 1, 1, 2, 3, 5, 8, 13, 21, 34). The key ratio, known as the Golden Ratio, is approximately 1.618. This is calculated by dividing a number in the sequence by its immediate predecessor (e.g., 34 ÷ 21 ≈ 1.619). Conversely, dividing a number by the next number yields approximately 0.618 (e.g., 21 ÷ 34 ≈ 0.618).

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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.

[FXOpenTeam]

Mastering the Marubozu Candlestick Pattern in Trading

Have you been looking at a chart for hours, wondering when to buy or sell? In one moment, the chart is green, screaming “buy.” Next, it’s all red, and the price is falling. Buying or selling becomes a tough decision if you resonate with this. However, candlesticks on your chart can help you.

This FXOpen article will help cover one of them – the Marubozu candle pattern. Tag along to learn about this candlestick, its types, and how to trade using it.

What Is a Marubozu Candle?

A Marubozu is a candlestick with no wicks that has a long body. It signals a strong price action as buyers or sellers dominate the session. “Marubozu” is a Japanese term meaning “bald” or “close-cropped.”

It can be bearish (if the open price is above the close) or bullish (if the open price is below the close). When it occurs, traders prepare for a significant price movement. But first, how can you identify it?

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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.

[FXOpenTeam]

Pound Falls After Inflation Report

The Consumer Price Index (CPI) report for the UK was released today, showing that inflation is decreasing at a faster rate than analysts had predicted. According to data from ForexFactory:

→ Yearly CPI: actual = 1.7%, forecast = 1.9%, previous = 2.2%;

→ Yearly Core CPI: actual = 3.2%, forecast = 3.4%, previous = 3.6%.

The currency market responded with a decline in the pound sterling against other currencies. Traders likely assume that the Bank of England now has stronger reasons to consider easing its current monetary policy, aimed at curbing inflation.

Specifically, the GBP/USD rate fell to its lowest in nearly two months.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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.

[FXOpenTeam]

Nvidia (NVDA) Shares Fall Over 4%, Missing a Record High

On 12 September, when analysing Nvidia’s (NVDA) stock chart, we drew an upward channel (shown in blue) and noted several resistance levels, including:
→ a downward trendline (shown in red);
→ a psychological level at $130.

As Nvidia’s (NVDA) stock chart shows, the bulls managed to overcome this resistance zone with a strong candle on 7 October (marked with an arrow).

Afterwards, Nvidia’s (NVDA) stock price reached the median line of the blue channel, but sharply reversed downwards yesterday. The bearish sentiment was driven by:

→ a broader decline in the US stock market, potentially due to investors reassessing risks following the initial corporate earnings results as the reporting season gains momentum;
→ rumours that the US government is preparing restrictive measures (which may affect Nvidia) to prevent the export of high-tech chip manufacturing technology abroad.

As a result, Nvidia’s (NVDA) stock price dropped by approximately 4% yesterday, just shy of the record set on 20 June.

What’s next?

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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.

[FXOpenTeam]

Euro Tests Key Support Levels Ahead of ECB Meeting

At the start of the current trading week, the U.S. dollar continued to strengthen across almost all fronts. European and commodity currencies are testing critical levels, and some pairs have managed to update recent extremes:

• EUR/USD fell below 1.0900
• GBP/USD is testing the 1.3000 level
• USD/CAD briefly traded above 1.3800

EUR/USD

The technical analysis of EUR/USD indicates the potential for further price declines, as a “double top” pattern has formed on the daily timeframe. Full completion of this pattern may lead to a test of the 1.0800-1.0790 range. The nearest area for corrective growth is between 1.0950 and 1.0900.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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.

[FXOpenTeam]

Fibonacci Retracements in Action: Practical Applications for Traders

If you’re wondering how to trade with Fibonacci retracements, you’re in the right place. In this article, we will break down why traders use retracements, their unique features, and how you can apply them in your trading strategies. Keep reading to learn about Fibonacci trading.

The Fibonacci Sequence for Trading

Fibonacci retracements are well-known tools used by traders of any level of experience. You may have never heard of Fibonacci Circles, Fibonacci Arcs, or a Fibonacci Spiral, but you have heard of retracements.

Fibonacci retracements make use of the Fibonacci sequence and the resulting Golden Ratio. Simply put, the Fibonacci sequence is a mathematical concept that starts at 0, then 1, with each following number being the sum of the previous two. It goes 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, etc.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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.

[FXOpenTeam]

Morgan Stanley (MS) Shares Rise 6.45%, Setting Historic High

Morgan Stanley (MS) reported its third-quarter results:
→ Earnings per share: actual = $1.88, forecast = $1.59
→ Gross revenue: actual = $15.38 billion, forecast = $14.35 billion

According to Barron’s, Morgan Stanley’s profit increased by 32% compared to last year, driven by heightened activity in investment banking, which had previously been pressured by the Federal Reserve’s high interest rates.

Market participants reacted positively to Morgan Stanley’s success, with MS shares rising 6.45% in a day, reaching an all-time high. Will the rally continue?

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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.

[FXOpenTeam]

How to Trade with the Island Reversal Pattern

Price action analysis serves as a pivotal methodology in financial markets, offering a means to assess and determine the future price movements of various assets, including stocks, currencies, and commodities. Among the many tools employed within this method, the Island Reversal pattern stands out as a significant indicator of potential trend reversals.

What Is an Island Reversal Pattern?

The Island Reversal is a technical analysis pattern that signals a potential trend reversal. It typically occurs after a strong uptrend or downtrend and is characterised by a gap in price action, isolating a group of candlesticks. The pattern suggests a shift in market sentiment, indicating that the previous trend may be losing momentum.

TO VIEW THE FULL ARTICLE, VISIT THE FXOPEN BLOG

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.

[FXOpenTeam]

Market Analysis: GBP/USD Takes Hit While USD/CAD Remains in Uptrend

GBP/USD started a fresh decline below the 1.3200 zone. USD/CAD is rising and might aim for more gains above the 1.3820 resistance.

Important Takeaways for GBP/USD and USD/CAD Analysis Today

• The British Pound started a major decline from the 1.3400 resistance zone.
• There was a break above a key bearish trend line forming with resistance at 1.3000 on the hourly chart of GBP/USD at FXOpen.
• USD/CAD is showing positive signs above the 1.3745 support zone.
• There was a break above a major bearish trend line with resistance at 1.3765 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair struggled to continue higher above the 1.3400 resistance zone. The British Pound started a downside correction and traded below the 1.3200 support zone against the US Dollar.

The pair even traded below 1.3040 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2975 level. A low was formed at 1.2973 and the pair is now consolidating losses. There was a minor recovery wave above the 23.6% Fib retracement level of the downward move from the 1.3102 swing high to the 1.2973 low.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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.

[FXOpenTeam]

Pound Near 1.3000 After Inflation Data; Euro Falls After Rate Cut

The upward momentum of the U.S. dollar continues to build:

• GBP/USD traded below 1.3000 this week;
• EUR/USD tested 1.0800;
• USD/JPY buyers strengthened the price above the key support level of 150.00.

GBP/USD

On Wednesday, the release of the UK Consumer Price Index (CPI) confirmed market expectations that the Bank of England may soon cut its base interest rate. The CPI showed inflation easing to 1.7% (from a forecast of 1.9%), which could influence the regulator’s monetary policy.

Following this data, GBP/USD sharply dropped below the key 1.3000 level, testing 1.2970. However, the downward movement did not gain further momentum, and the price rebounded from 1.2970, forming a bullish reversal pattern known as “bullish harami.” The pair is now testing the 1.3060-1.3000 range as resistance. A breakout above this level could lead to further growth towards 1.3170-1.3130. A rejection from current levels may push the price back down towards 1.2940-1.2870.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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.

[FXOpenTeam]

XAU/USD Analysis: Gold Price Surpasses $2700 for the First Time

The XAU/USD chart shows that gold has reached a historic high, surpassing the psychological level of $2700.

According to Yahoo Finance:
→ Bullish momentum is being driven by central banks increasing their gold reserves;
→ Goldman Sachs analysts have raised their gold price target from $2700 to $2900.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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.

[FXOpenTeam]

Taiwan Semiconductor (TSM) Shares Rise by Nearly 10%

Taiwan Semiconductor Manufacturing Company Limited (TSM) posted quarterly results that exceeded analyst expectations, driven by strong demand for AI-related chips:

→ Earnings per share: Actual = $1.95, Expected = $1.79;
→ Revenue: Actual = $23.6 billion, Expected = $23.3 billion.

According to the Wall Street Journal:

→ The company expects its revenue from servers and AI processors to triple this year, representing about 15% of its total revenue.
→ TSMC forecasts Q4 revenue between $26.1 billion and $26.9 billion.
→ Citi analysts believe TSMC’s gross profit could continue growing next year.
→ Morningstar analyst Felix Lee noted that TSMC is well-positioned against competitors like Samsung and Intel.

TSMC shares surged following the report. Today’s stock chart shows: → A 10% increase, reaching an all-time high;
→ The stock surpassed the psychological $200 level;
→ Year-to-date price growth is around 100%.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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.

[FXOpenTeam]

Watch FXOpen’s 14 - 18 October Weekly Market Wrap Video

Weekly Market Wrap With Gary Thomson: GBP, EUR, Natural Gas and NVIDIA (NVDA) Shares

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.

• Pound Falls After Inflation Report
• Euro Tests Key Support Levels Ahead of ECB Meeting
• Natural Gas Price Drops Over 8% Since the Start of the Month
• NVIDIA (NVDA) Shares Fall Over 4%, Missing a Record Hig

Stay in the know and empower yourself with our short, yet power-packed video.

Watch it now and stay updated with FXOpen.

Don’t miss out on this invaluable opportunity to sharpen your trading skills and make informed decisions.

FXOpen YouTube

#marketwrap #marketanalysis #forexmarketanalysis #stockmarketanalysis

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.

#fxopen #fxopenyoutube #fxopenint #weeklyvideo

[FXOpenTeam]

Mastering Trading with Continuation Candlestick Patterns

Continuation candlestick patterns are a common tool traders use in technical analysis to identify when a prevailing trend is likely to continue after a pause. In this FXOpen article, we explain how continuation candlestick patterns work, and how you can use them to identify market trends and make informed trading decisions.

What Is a Continuation Candlestick Pattern?

Candlesticks are a popular tool in technical analysis used by traders to visualise price movements in financial markets, including forex, stocks, and commodities. They show the opening, closing, high, and low prices of an asset within a specific timeframe (such as 1 minute, 1 hour, 1 day, etc.). Continuation candlestick patterns are chart formations that indicate the current price trend (whether bullish or bearish) is likely to continue, rather than reverse.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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.

[FXOpenTeam]

Market Analysis: AUD/USD and NZD/USD Could Recover In Short-Term

AUD/USD is attempting a recovery wave from 0.6660. NZD/USD could gain bullish momentum if there is a clear move above the 0.6090 resistance.

Important Takeaways for AUD/USD and NZD/USD Analysis Today

• The Aussie Dollar found support near 0.6660 and is now recovering against the US Dollar.
• There was a break above a key bearish trend line with resistance at 0.6690 on the hourly chart of AUD/USD at FXOpen.
• NZD/USD is attempting a recovery wave above the 0.6050 resistance.
• There was a break above a major bearish trend line with resistance near 0.6075 on the hourly chart of NZD/USD at FXOpen.

AUD/USD Technical Analysis

On the hourly chart of AUD/USD at FXOpen, the pair dipped from the 0.6760 resistance zone. The Aussie Dollar declined below 0.6700, but the bulls were active near 0.6660 against the US Dollar.

A low was formed near 0.6658 and the pair is now correcting losses. There was a move above the 50% Fib retracement level of the downward move from the 0.6759 swing high to the 0.6658 low. There was also a break above a key bearish trend line with resistance at 0.6690.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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.

[FXOpenTeam]

EUR/USD Approaching Key Support Level

Last week, the European Central Bank (ECB) cut interest rates as expected, marking the third reduction this year. According to Trading Economics, market participants speculate there could be another rate cut in December. This dovish stance is weakening the euro, as the ECB signals deteriorating economic prospects in the Eurozone.

In contrast, the U.S. dollar remains strong, supported by:
→ Robust economic data, including retail sales figures that exceeded expectations last week.
→ Expectations that Trump may win the next U.S. election, with his proposed trade and tax policies likely to support the dollar.

As a result, EUR/USD continued its decline last week, with the pair falling by about 2.5% since the start of October. Will the downtrend persist?

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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.

[FXOpenTeam]

Netflix (NFLX) Shares Hit Record High in Aggressive Move

Netflix (NFLX) shares reached a record high in a dynamic move. As shown in Netflix’s stock chart, the price hit an all-time peak, with Friday’s candle closing above $760. This follows an aggressive rebound, given that on Thursday, the price had fallen below the psychological level of $700.

This sharp move created a significant bullish gap, with the difference between Thursday’s and Friday’s closing prices exceeding 11%. The catalyst for this surge in volatility was the release of Netflix’s strong third-quarter results:

→ Earnings per share: Actual = $5.40, Expected = $5.11;
→ Gross revenue: Actual = $9.82 billion, Expected = $9.77 billion. Netflix also forecast a 15% growth in Q4 2024;
→ Free cash flow increased from $1.213 billion in Q2 to $2.194 billion in Q3.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

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.