Weekend Market Wrap Up - 21st October 2023 Edition
More downside to come?
Hello cryptocurrency enthusiasts, FX traders, stock, and ETF investors! Here's a comprehensive update on last week's happenings and what's expected for next week. So, grab a cup of coffee (or an energy drink in my case), and let's dive in!
Bitcoin Crypto Market and Dealing with the Range
Bitcoin continues to hover within a specific range, with traders anxiously waiting a breakout on either side of the spectrum. Last week, it managed to climb back over the 200-week moving average, indicating positivity. But beware! Although Bitcoin showed a strong performance, it is currently at a level where resistance was met a few times.
Gold and Silver Dynamics
Gold is another captivating subject worth discussing. Instead of a pullback following its massive weekly candle, Gold consolidated. This created an opportunity for traders to buy gold over a little flag it displayed on the four-hour chart.
The perspective on Gold for the long term remains bullish, mainly due to a massive multi-year cup and handle evident in the charts. This could lead to a strong, interesting spike in gold. Surprisingly enough, silver is escalating but does not seem to be on par with gold, indicating that it's less attractive compared to its counterpart gold.
Currency Markets WatcList - What is Bouncing Off?
Next in our line of discussion is the FOREX market, where the Euro and the Dollar seem to be bouncing off from the anchored VWAP. When pulled back into the VWAP, it presents an opportunity for traders to look for long positions and trade on the short term charts, which we've been doing for the past couple of weeks.
In the same light, take a look at Pound Dollar with anchored VWAP acting as support again. Should a bounce off happen here, it could be a potentially interesting oversold bounce to play.
On the flip side, USDCHF is showing the inverse effect. After a nice push, it reacted wildly off a certain level and came back to the lower anchored VWAP. While it didn't respect the watched level around the daily chart and dropped right through, it now provides a potential chance for a bounce in the opposite direction, if it happens.
Last but not least in the currency space is Aussie CAD. I've been monitoring it closely and trading it with significant success, even though it's relatively new to me. After some successful long plays, it's now back to that critical level. Hence, both sides of the market interest me at this stage.
Underlying Stocks and ETFs
Let's focus on SPY and look into its bearish engulfing candle. The market moved down all week, closing right at the 420 area. This is not what I had expected to see going forward in a bullish situation. However, I'm not looking at this as the end of days scenario. I'm merely stating that I would expect some follow-through on a push lower before the possibility of turning higher.
Sector Watch- Uranium, Oil and Semiconductors
Uranium and oil trends are our topics for the 'under the hood' section. Uranium, (symbol URA) golfed in an uptrend, showed an impressive bullish reversal, contrasting with the market's downtrend. Oil too portrayed a positive performance last week, given that the market went through a shakeout candle and started to climb again.
Semiconductors, on the other hand, seem to experience a round-top with potential to break 140 and push even lower. If it breaks, levels that are interesting to watch are: the breakout around 120 and the round-top area.
Interesting Stocks to Watch
Lastly, let's take a look at some stock names piquing my interest:
SN 0.00%↑ (Sanchez Energy Corp) - After a few satisfactory trades, I'm keeping an eye on it as it pulls back to the supporting $40 area.
NUVL 0.00%↑ - After breaking the barrier, it's now pulling back to the breakout area, offering a potential bounce-off point.
CRNX 0.00%↑ - This one showed up on my Trade Ideas Relative Strength Scanner.
BLTE 0.00%↑ - A recent addition to my portfolio; betting on a breakout over the zone.
GRPN 0.00%↑ - With the stock putting on a tight consolidation at highs, it's worth watching.
UEC 0.00%↑ and UUUU 0.00%↑ - These two are uranium plays and could do well if the prediction of a high uranium market turnout is accurate.
Don't forget that your work isn't done when the stock market is falling. Instead, this is the time to put in some work, build your watchlist, and prepare for when the market turns and starts pushing higher.
"The aim of a successful trader is to make the best trades. Money is secondary." - Alexander Elder
Watchlist: https://www.trade-ideas.com/Cloud.html?code=0970e94548fbcff1ab607950ef6dae1a