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Beniamin Thomas

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  1. Hello, thanks for asking! As markets, today are fairly unpredictable, and any change can result in huge amounts of money gained or lost, it is necessary to carry out all transactions in a timely manner, in order to ensure an orderly and healthy stock market. Therefore, a 3-day rule was imposed in order to guarantee that all transactions are conducted on time, and that payment is put forward, in order to prevent someone suffering losses, because of untimely transfer of funds. The settlement is a term used in this 3-day rule, which indicates that ownership of a certain stock has been transferred from one owner to another and that both sides have been compensated. It is called T+3 which includes the trading day (T) and plus three extra days in which all procedures regarding a sale or purchase need to be settled. It doesn’t only cover stocks but to many bonds, and mutual funds as well. This decreases the risk of manipulation and lowers the overall risk for all parties involved. If this rule is not respected, the damaged side has the right to transfer the incurred losses to the side which hasn’t transferred the funds and thus broke the 3-day rule.
  2. Hi James, thanks for asking! Social trading is a strategy of copying someone else’s investments. While utilizing this strategy it is important to keep notice of their historical record, and plan your strategy and future actions according to this. When setting up this service, it is important to have an outreach to both the customer and broker base and utilize this connection in such a way that they are able to easily contact each other, and share their strategies and tips. It is important to be careful when picking brokers for your service and make sure that they are reliable, professional, and avoid ones that have a suspicious history of trading or history of cons.
  3. Hi Philip, thanks for asking the question. EUR/USD has been trading below the $1.08 handle for the entire day as the sellers regained control yesterday. The bulls failed to clear $1.09 yesterday which was punished by the bears who were supported by the Fed Chairman Jerome Powell, who ruled out negative interest rates. Euro didn’t get much from the ECB either after the central bank warned that the eurozone economy is likely to shrink “at a speed and magnitude that are unprecedented in peacetime”. The ECB expects the EU GDP to shrink at least 5%, while the worst-case scenario points toward a 12% decline. “The latest economic indicators and survey results covering the period since the coronavirus spread to the euro area have shown an unprecedented decline, pointing to a significant contraction in euro area economic activity and to rapidly deteriorating labour markets,” it is said in the latest ECB’s Economic Bulletin. As for the prediction, it will be interesting to see how much lower can EUR/USD go below $1.08. The March lows just above $1.07 may cap the further losses.
  4. Beniamin Thomas

    P/E

    Hi Michael, thanks for the question. The P/E ratio is one of the most popular valuation methods applied by financial analysts to determine the stock value. You can often read in the media about how a specific company performed, with the P/E ratio popping up in conversations quite often. Similar to earnings per share (EPS) method, the P/E method is very popular due to its simplicity and mass adoption. In essence, you don’t have to be a financial genius to calculate the P/E ratio of the company. It is simply calculated by dividing the current market price per share with the basic EPS to get the P/E ratio. For instance, if Facebook trades at $30 per share and its reported EPS is at $3, that makes the P/E ratio at $10. Analysts mostly use it to compare companies in the same sector and ultimately determine if the stock is relatively overvalued or undervalued. It is important to note a difference between the Forward P/E ratio which is based on the estimated earnings per share rather than financial results reported by the company in the past, the values used to calculate the Trailing P/E.
  5. Beniamin Thomas

    BT

    Hello Trevor, thanks for asking. BT Group, the parent company of BT Sport and BT Mobile, reported its first-quarter results last week. The media giant said its pre-tax profit posted a 12% decline to £2.3 billion for the quarter ending March 31. As a result, the dividend payout has been suspended while its reintroduction is scheduled for 2020, with a 50% decrease. Technically, Class A of BT shares is trading near the 11-year low just above 100. Despite the stock market moving higher in April, the BT stock price made a very shallow attempt to rebound higher. Hence, I’d say you should stay away from the BT stock for the time being.
  6. USD/JPY didn’t react to the Bank of Japan’s (BoJ)“summary of opinion” document from the April meeting. Among other things, the document shows that the BoJ believes that the economy “likely to remain in a severe state for time being”. Technically, after a volatile trading period amid the coronavirus outbreak and the stock market crash, the USD/JPY is now trading in a more calm fashion. The pair is attempting to break out above the descending wedge, although with no real volume behind this attempt so far. Still, the resistance of the descending wedge didn’t manage to keep the price action underneath itself and therefore exposing the $107 level. A break of this level would pave the way for USD/JPY to test the $108 mark in the coming days. Overall, I see USD/JPY trading between $106.50 and $108 for the rest of the month.
  7. Beniamin Thomas

    Roku

    Hi Anna and thank you for your question. In general, you are right. Roku stock price plunged nearly 8% yesterday despite Roku’s first-quarter revenue numbers that topped the analysts’ estimate. Roku said it added 2.9 million new active accounts, which represents a 37% increase compared to the same quarter last year. Another important metric that is closely scrutinized by analysts and investors - streaming hours - Roku reported a jump of 49% on an annualized basis. However, the fact that the advertisers slashed spending during the coronavirus pandemic hurt Roku’s financial performance, causing the stock price to drop nearly 8%. The stock price is strongly supported below $120, hence I’d be cautious with playing the Roku stock on the sell side. A more bullish scenario would see the stock price trade between $120 and $150 in the coming weeks as the latter is a strong resistance.
  8. Thank you for your question. In general, AUD/USD has been one of the most volatile pairs out there recently. Following the creation of an 18-year low in March, the Aussie has rebounded strongly to trade at the February levels. The price action tested the 100-DMA on Friday just below $0.6540. A break of this resistance level would pave the way for a move to $0.6670, a confluence of the 200-DMA and the horizontal resistance. The confluence usually tends to attract the price action like a magnet, hence I’d be expecting the Aussie to try to test $0.6670 before rotating lower.
  9. Hi Trevor, thanks for the question. It is quite difficult to predict price movements given the rapidly evolving situation amid the COVID-19 outbreak. Technically, the pair is attempting to set up a base near the $1.0760 mark, where the triangle’s support is located. If you look at the big picture, the symmetrical triangle is created, which is generally considered to be a neutral consolidation pattern. Still, the buyers managed to force the price action to bounce off of the triangle’s support and they will be now aiming to test the upper line, trading just underneath the $1.10 handle. In this zone, there is also the 200-DMA, adding an additional degree of resistance. Hence, I suspect we may be heading towards the $1.10 handle in the coming days while the break of this level would open the door for higher levels in EUR/USD.
  10. Beniamin Thomas

    Bitcoin

    Hi Anna, thank you for your question. As you have probably read, the Bitcoin halving event is scheduled to take place this week. In general, it is considered to be a bullish event for the Bitcoin as the reward for miners is cut in half. Technically, the Bitcoin price broke above a very important resistance area yesterday. This $9,000 zone capped Bitcoin from moving higher in the past. The path for the extended rally to the upside is now clear with Bitcoin buyers eyeing $10,500 next. Hence, I believe that Bitcoin has a very good chance of ending the month above $10,000.
  11. Beniamin Thomas

    Gold

    Hello Anna, and thanks for coming here to hear our assessment. Technically, gold prices had a robust month in April by gaining 7%, also hitting the highest price recorded since November 2012. Please note that the price action is creating a bull pennant chart pattern - a continuation pattern that helps the uptrend to extend higher. For this pattern to be activated, the gold prices need a move above $1,740. Ultimately, a push to $1,900 should complete the formation. Hence, it is very possible that gold prices can extend the current rally to, or near, the $2,000 mark.
  12. Hello Philip, thanks for the question. USD/JPY managed to break below the $107.00 horizontal support yesterday and hit the fresh 2020 low. As a result, the pair traded at the lowest levels since September last year. USD/JPY has managed to recover a portion of earlier losses. The price has now come back to retest the broken support at $106.45 resistance, now acting as a resistance. Looking lower, USD/JPY has big support at $104.50, which is a key level for the pair and expected to attract the price action since the risk is now to the downside. However, the sellers will have to first clear a 61.8% Fibonacci retracement at $105.20.
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