Tuesday, April 13, 2021

Daily Trading Analysis 13.04.2021

Trading Analysis of USD/CAD
In the accompanying statement at the end of the monetary policy meeting the Bank of Canada said:
The Central Bank will maintain the rate at current levels and continue QE until inflation reaches the target level on a sustainable basis;
The Central Bank will maintain a transparent communication policy and continue to implement the QE program at the current pace (at least C$4 billion per week);
The C$ remains relatively stable against the USD, but has strengthened against most other currencies ;
The economy is showing better-than-expected resilience in the second wave of the pandemic;
Canada's Q1 GDP is expected to show growth (versus January's forecast of contraction);
The spread of more contagious strains of COVID-19 poses downside risks to activity;
Inflation in Canada may rise temporarily near the upper end of the range over the next few months;
After that, inflation will fall as the effects of the low base fade.


Our Analysis:

Provided that the currency pair is traded above 1.2550, follow the recommendations below:
  • Time frame: 30 min
  • Recommendation: long position
  • Entry point: 1.2575
  • Take Profit 1: 1.2610
  • Take Profit 2: 1.2635

Alternative scenario:

In case of breakdown of the level 1.2550, follow the recommendations below:
  • Time frame: 30 min
  • Recommendation: short position
  • Entry point: 1.2550 
  • Take Profit 1: 1.2535
  • Take Profit 2: 1.2520

Trading Analysis of S&P 500 Index
U.S. stock indices declined in trading on Monday due to investors' reluctance to open new positions at the start of a week full of quarterly company reports and economic statistics. The S&P 500 declined 0.81 points (0.02%) to 4127.99 points.


Our Analysis:

Provided that the index is traded above 4100.00, follow the recommendations below:
  • Time frame: H4
  • Recommendation: long position
  • Entry point: 4128.00
  • Take Profit 1: 4140.00
  • Take Profit 2: 4170.00

Alternative scenario:

In case of breakdown of the level 4100.00, follow the recommendations below:
  • Time frame: H4
  • Recommendation: short position
  • Entry point: 4100.00 
  • Take Profit 1: 4065.00
  • Take Profit 2: 4035.00

Fundamental Trading
Analysis of Tesla 
When Tesla recently reported first-quarter deliveries, the U.S. market did not have a chance to react to what was happening as the stock market was closed for the occasion of Good Friday. The figures easily beat analysts' expectations, even though production of the company's flagship Model S and Model X vehicles has been halted as Tesla is retooling those production lines for the updated versions announced earlier this year.


Our Analysis:

While the price is above 601.00, follow the recommendations below:
  • Time frame: D1
  • Recommendation: long position
  • Entry point: 677.00
  • Take Profit 1: 786.00
  • Take Profit 2: 839.00

Alternative scenario:

If the level 601.00 is broken-down, follow the recommendations below:
  • Time frame: D1
  • Recommendation: short position
  • Entry point: 601.00
  • Take Profit 1: 514.00
  • Take Profit 2: 463.00

Risk Warning: Forex and CFD trading carry a high degree of risk. As such they may not be suitable for all investors. Investors should ensure they fully understand the risks associated with CFD trading before deciding to trade. Investors may choose to seek independent advice and should not risk more than they are prepared to lose.

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