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Posts posted by Bogdanovicc

  1. Where do you see DAX Index trading in the few weeks? It seems that there’s only one direction judging by the price developments recently... 

  2. Hi Samir, thanks for the question.

    Fintechs are extremely popular nowadays. Especially with the COVID-19 outbreak that has forced millions of people to shop online. I think that the fintech industry is by far the biggest threat to traditional banking. 

    Given its great potential and heightened consumer demands, fintech has never attracted more attention than now, especially after the COVID-19 outbreak. Looking at numbers, investments in financial technology were estimated at $1 billion. Then years later we are talking about more than $127 billion in 2018 with projections of $310 billion in two years’ time.

    In general, I believe that the best change that fintech has brought is related to stimulating the traditional institutions to change how they operate. You have examples of traditional payment companies that merged with emerging financial startups.

    Of course, regulation is still a big issue. Certain countries are still very cautious as they don’t want to undermine the traditional industry. Hence, the need for proper regulations and security is bigger than ever. 

    In the end, we are not talking about payments and money transfer only. Certain societies and countries that have deep financial problems e.g. Venezuela, see crypto startups for money transfers as much more than a currency. Remittance and money transfers save lives in these regions. 

    The same applies to Africa. Today, there’s a high number of new fintech startups for money transfers. 

    “Africa is rarely mentioned among the largest markets for cryptocurrency, but it may be set to steal a march over other markets,” said Rakesh Sharma, a business and technology journalist.

    Simply, money transfers by the emerging fintech apps are now widely used around the globe. I believe that traditional financial institutions will have to adjust to the new environment and work together with the emerging fintech firms to lay a solid foundation for the future.


  3. Hi Samir, thanks for coming here.

    Chainlink price gained more than 11% last month which is very good. Especially bearing in mind that in April gains stood at 60%. Usually, after a strong month, a dominant market force tents to take a pause and allow correction. Therefore, the buyers are in full control with LINK/USD.  

    Looking fundamentally, the Chainlink platform announced a partnership with Kakao’s global public blockchain project Klaytn. The goal behind this partnership is to use Klaytn’s smart contracts as access to resources outside the blockchain to develop apps that are linked to real-world data and systems. 

    “We look forward to providing the Klaytn ecosystem with secure and reliable oracles to enable the development of next-generation decentralized applications,” said Sergey Nazarov, the Co-Founder of Chainlink. 

    “Klaytn can accelerate towards its goal of blockchain mass adoption with the addition of real-world connectivity made possible by Chainlink oracles,” he added.

    In addition to the Klaytn partnership, Chainlink inked a deal with the cryptocurrency futures exchange Digitex Futures to fully incorporate its Price Reference Contracts (PRC) in a bid to offer precise price data and avoid fluctuations. 

    “Using Chainlink price data enables us to deliver stronger security and performance guarantees to our users, furthering our vision to revolutionize futures trading,” Chief Executive and founder of Digitex Futures, Adam Todd said.

    Therefore, the near future looks very positive for Chainlink. The platform is progressing well, which is reflected in the cryptocurrency market. LINK/USD is currently trading within an ascending parallel channel that is helping the price action to push higher.

    The aim of the bulls is to take the price action towards $4.23, before the $4.69 mark can be tested. In case there is a pullback, the channel’s support around $3.85 will be there to offer demand for LINK.


  4. Hi Predrag, thank you for asking this question. 

    In general, investing is always a preferred option. Additionally, investing in the stock market is the most likely choice for many investors as it offers a high growth rate, although the risk associated with investing in stocks is higher as well. In essence, the higher the return, the higher the risk as well.

    Some people also prefer to invest in more secure assets, such as government bonds. They are far more secure than stocks since the governments are their guarantees. However, they also offer much lower return rates.

    “If you had to choose between buying long-term bonds or equities, I would choose equities in a minute. If I were going to own a 30-year government bond or own equities for 30 years, I think equities will considerably outperform that 30-year bond,” the legendary stock market investor Warren Buffet once said.

    Before you invest, we advise you to first analyze the market that you are looking to invest the funds in. The basis analysis should be conducted both from the technical and fundamental aspects. 

    Fundamental analysis is looking to measure the natural value of an asset. For instance, fundamental analysts tend to look at Apple’s revenue, cash flow, dividends, management, earnings, growth etc. This way they would calculate the value of each Apple share.

    Conversely, technical analysts would simply look at the market price of Apple shares to tell you the price. They believe that all financial and fundamental factors are priced in.

    Although completely different, these two methods can work together in an efficient manner. First, you should analyze the stock from a fundamental viewpoint. This should tell you whether this stock has a good outlook. If the answer is yes, then the technical analysis should help you WHERE to buy the stock i.e. the price. This way, you will get the price levels at which buying the stock X is attractive.


  5. Hi Samir, 

    Thanks for the question. 

    The ascending triangle is a bullish chart formation. It is made out of two trend lines with the upper trend line being flat while the lower trend line is forcing the price action higher. Therefore, the price action is creating a series of the higher lows, which is a characteristic of the bullish price movements.

    As with other triangles, the break of the price action above the resistance trend line activates the pattern. This way, the ascending triangle comes in the middle, with an uptrend preceding the triangle and resuming after the triangle is broken.

    On the other hand, the descending triangles are bearish chart patterns that take place during a mid-trend. They look very similar to an ascending triangle, with the difference being that the descending triangle is a bearish chart formation. In this case, the lower trend line is flat while the upper line pushes the price action lower. Before two trend lines converge, the break out occurs and activates the pattern. 

    Both patterns are extremely powerful continuation chart formations. The idea behind these two triangles is that chances of the continuation are higher than the reversal. This equips traders with a trading setup to play with. The break of the resistance/support line activates the pattern and provides traders with stop loss, take profit and entry. Therefore, the triangle is a classic “ride the trend” strategy. 

    The biggest weakness of these triangles is the possibility of a false breakout. This happens when the market breaks above/below the trend line and then reverses its course to trade in the opposite direction. Traders are faked to enter the market, get on the wrong side by believing that the market is about to extend the overall trend, however, the reversal stops them out. This is why it is important to set a stop loss inside the triangle and limit potential losses if the market fakes us out. 


  6. Hi Predrag, thanks for coming here.

    Tezos (XTZ) has been actively covered by the media in recent days after Bitcoin Suisse, the Swiss crypto financial services company, said it will start with the custodial and staking support for Tezos.

    The crypto-financial company is targeting institutional clients to store and get rewarded for making Tezos deposits. The Zug-based firm manages more than $1 billion in assets. 

    “Tezos was created with fundamental security features like formal verification that allow for institutional-grade smart contract security,” said Roman Schnider, Chief Financial Officer and chief of operations at the Tezos Foundation.

    “We are excited to be adding XTZ to the Bitcoin Suisse Vault thereby making XTZ available for clients requiring a fully audited custody service. We are also very impressed by the development of the Tezos ecosystem and by including XTZ in our institutional-grade infrastructure are proud to contribute to that development,” he further said.

    Bitcoin Suisse is looking to raise additional funds by selling 20% of its mother company at a pre-money valuation of $283 million.

    On the other hand, Tezos surged 70% in April as one of the best-performing coins. In the current month, the XTZ price has been trading sideways as the buyers consolidate recent gains. Tezos, which is planning the rollout of its mainnet, has been consolidating its gains just below the $3.00 mark.

    It is important to note that the San Francisco-based Tezos trades in a symmetrical triangle. Given that the price action created this triangle from a bullish uptrend (from the lows), it is considered to be a bullish symmetrical triangle. 

    The buyers must force a close above $2.90 to activate the break of the triangle. A move towards $3.70 would then complete the pattern, which means an increase in price by at least 30%. 


  7. Hi Predrag, thanks for your question. 

    DAX Index has been one of the best performers recently. The German benchmark index has recorded a series of consecutive days of gains as it closes in on the key short-term support near 12000.

    Fundamentally, the DAX Index has been boosted by the decision of national authorities to allow travel to 31 European countries (EU member states + the UK, Iceland, Norway, Switzerland and Liechtenstein), starting from 15 June.

    This decision comes as a result of increased pressure on Angela Merkel to lift some restrictions. In a meeting between the federal government and regional authorities, the agreement has been reached to extend social distancing measures until the end of June. Moreover, the limit of the maximum number of people that can meet has been increased from two to ten. 

    Separately, the German government is bailing out Lufthansa, a national carrier. The deal will give a 20% stake in the carrier to the government in exchange for €9 billion. The government intends to sell the stake at the end of 2023, it is announced.

    “The support that we’re preparing here is for a limited period. When the company is fit again, the state will sell its stake and hopefully … with a small profit that puts us into a position to finance the many, many requirements which we have to meet now, not only at this company,” said Germany’s Finance Minister Olaf Scholz.

    Going back to the technicals, the DAX Index reached the early March levels for the first time today. It means that more than half of corona-triggered losses are now recovered for the index as the buyers prepare for an assault on the key resistance near the 12000 mark. This is a zone that hosts a series of key moving averages on both the daily and weekly charts.


  8. Hi Samir, thanks for coming here.

    As you may expect, the Italian economy is facing enormous challenges. The government has decided to open the doors of restaurants, cafes, museums and shops this week after nearly three months of lockdown. 

    “One step at a time, with caution and attention, so as to avoid falling and going back. Italy will start running again,” wrote PM Conte in a column in a daily newspaper.

    However, the very strict hygiene and social distancing measures are still in place, which makes it difficult for businesses to operate.

    “Were I to open tomorrow, I wouldn’t have one client. There are 12 luxury hotels on the street. Sixty percent of my business comes from their clientele and they’re all closed,” an owner of a bar in Rome was quoted saying by the AFP.

    Italy has also opened beaches and its museums in a bid to attract international tourists. It is estimated that around 10% of the Italian GDP is based on tourism. Their hopes will be boosted by the fact that international travel is set to resume next week. 

    Looking at the charts, the FTSE MIB index printed in March the lowest levels seen since 2013. The price action has been attempting to recover since both April and May now likely to finish in the green. 

    The buyers have pushed the price action to the 38.2% Fibonacci retracement, which is located above the 18000 mark. If this level is broken, the buyers will aim to force the price action towards the key intraweekly resistance at 18,500. In addition, the horizontal resistance also sits here, which makes this area very difficult to break.

    All in all, the FTSE MIB is still struggling. Its German counterpart, for instance, has already managed to recover more than 60% of corona-related losses.


  9. Hello Samir and welcome to our forum. Thanks for asking the question related to scalping. 

    Scalping is one of the most popular trading methods due to the simplicity and given that it doesn’t require you to have a great degree of knowledge about markets and trading in general. It works the best in highly liquid markets given that the spreads are the lowest in such an environment.

    The basic idea behind scalping is that it is looking to build a series of winning trades by opening and closing trades quickly. By adding a few pips here and there, scalpers are not interested in the larger market trends. Instead they are targeting a big number of smaller and quicker traders. 

    What you have to know about scalping is that it is only useful in the trending and directional markets. A strong trend provides the basis for the different scalping methods that can be used to make profits. 

    In order to make it work, scalpers must close the day with a high percentage of winning trades as they can’t rely on the size of winning trades. They aim to close positions very quickly, move on and look for new scalping opportunities. 


  10. Hi Predrag, thanks for the question. 

    EUR/USD recorded today one of the best days recently by surging nearly 1% to test the zone around $1.10. 

    Fundamentally, all eyes are on Germany.  A possible ruling of the German constitutional court that would ban the Bundesbank from taking part in the EU's QE has made the European Central Bank (ECB) start working on the contingency measures. If fears become reality, the share allocated to Bundesbank is likely to be taken by the ECB.

    Legally, the ECB could get on with the QE without the Bundesbank. However, the market is likely to take this situation very seriously. 

    “There is no doubt that such a step would shake the market’s confidence in the ECB’s ability to do ‘whatever it takes’ for as long as it takes. Spreads might widen again and risks to financial stability would rise,” said Marco Annunziata, a member of the ECB’s Shadow Council and the European Council of Economists.

    Hence, EUR/USD may continue to trade in the shadow of fundamental events. With today’s rally, EUR/USD price has entered the key resistance zone that consists of four different resistance levels - from $1.0960 to $1.1010. A break of this zone opens the road for much higher levels, with $1.1150 as the next target.


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