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Luka Rice

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  1. Hello, thanks for asking! Yes, It is possible to buy one share of stock, though that possibility may depend on the type and price of a stock that you are buying. It is always advisable to buy fewer shares before you commit to a larger investment.
  2. Hi Peter, Thanks for the question. I think that now, the answer to your question may be yes! According to media reports, Paypal is working on offering crypto buying and selling services to hundreds of millions of its users. “My understanding is that they are going to allow buys and sells of crypto directly from PayPal and Venmo. They are going to have some sort of a built-in wallet functionality so you can store it there,” an industry source was quoted by CoinDesk. The financial behemoth is reportedly having talks with multiple crypto exchanges, such as Coinbase and Bitstamp. If everything goes according to the plan, PayPal may start offering its crypto service in the next three months. This could prove to be a giant step forward for the entire cryptocurrency industry. Paypal serves more than 300 million users and its direct involvement may bring cryptocurrencies one step closer to mass adoption. “We are a strong believer in the potential of blockchain. The digitization of currency is only a matter of when not if,” PayPal Chief Technology Officer Sri Shivananda said. In related news, PayPal has apparently listed two job vacancies on its website, looking to hire two crypto-related persons. The firm is looking for “Technical Lead – Crypto Engineer” and “Blockchain research engineer”, which all but confirms that the financial giant is indeed preparing to roll out its crypto services. In addition to PayPal, Venmo is apparently also preparing to offer crypto services to over 50 million of its users. Venmo is a mobile payments subsidiary of Paypal. All in all, Bitcoin price has reacted positively to the PayPal news by gaining over 4% in yesterday's trading session. We may finally be ready to attack and clear $10,000 and start pushing higher. The first target to the upside is $11,500. If you want to follow Mike Novogratz's advise, then Bitcoin price may travel to $20,000 by the end of the year.
  3. Luka Rice

    Gold EFT Investment

    Hi Rockey, thanks for asking the question. Exchange-Traded Funds (ETFs) are extremely popular among investors nowadays because they have very appealing expense ratios, and offer some benefits compared to traditional mutual funds. The first step for trading ETFs is setting up a brokerage account. ETFs work like individual stocks because you can trade them only during trading hours. You can choose between various brokers today, depending on which you think will suit your needs. Some financial services companies such as Vanguard and Schwab have their own ETFs which you can trade without paying commission. Other brokers have agreements with third-party ETF providers under which they charge no commission fees when trading ETFs. You should probably do some research and see what each broker offers and then decide which one will work the best for you. Another thing to keep in mind when choosing which ETF to invest in is checking out their costs. There’s a great number of ETFs to choose from and every one of them publish their annual expense ratios. These ratios refer to the percentage of total fund assets that’s meant for covering the costs of the fund. Lower costs will save you some money and some of the most competent ETF providers have expense ratios lower than 0.1%. It’s also a good idea to keep your ETF portfolio diversified. I recommend choosing ETFs that are in different categories like stocks, bonds, real estate, and so on. Increasing your exposure in every category is a good thing to do as well. With stocks, for example, different ETFs that have companies of various sizes and belong to different sectors will do you good in terms of risk management.
  4. Luka Rice

    Gold

    Hi Fernando, thanks for the question. Although your question was posted a month ago, I believe that Gold analysis has no time-relevancy, therefore I will offer my 2 cents below. In the past two weeks, gold prices gained more than 5% after printing a 6-week low near the $1,670 mark on June 05. The latest bullishness can be attributed to the low real interest rates, currency debasement concerns and the surge in COVID-19 infection cases, which has placed fresh doubts over a quick global recovery. “Could a rise in new infections force advanced economies to re-impose lockdowns that are so harsh and widespread that they would shatter confidence and disrupt the nascent economic rebound? Four months after the virus started to hit Europe badly, that remains the key risk to watch for the economic outlook as well as for financial markets,” said Holger Schmieding, chief economist at Berenberg. Banks have also been bullish on gold in the past few weeks. Most importantly, Goldman Sachs updated its prediction on gold to $2,000 in the next 12 months, again citing currency debasement as the main reason. “Policy uncertainty aside, we believe that debasement fears remain the key driver of gold prices in a post-crisis environment such as this. As we have argued in the past, gold investment demand tends to grow into the early stage of the economic recovery, driven by continued debasement concerns and lower real rates. Simultaneously, we see a material comeback from emerging market consumer demand boosted by easing of lockdowns and a weaker dollar,” Goldman’s analysts said. This comes after the Bank of America famously upgraded the gold target for this year from $1,000 to $3,000 in March. Technically, the price action broke above the ascending triangle, which is a bullish continuation pattern that signals a likely continuation of the overall uptrend. The calculated target for this pattern, which has been activated following a move above $1,750, is $1,820. Before that, the buyers would need to clear the 8-year high at $1,765 first. I hope you found my answer helpful.
  5. Luka Rice

    L Brands

    Hi Trevor, Since its last closing price, shares of L Brands, Inc. (NYSE: LB) climbed by 1.03%. Brokerage companies have already issued their reports on the LB stock, with Telsey Advisory Group rating the stock to Market Perform once again. The investment banking company set the price target of $15 for LB stock. Another financial services organization, Wedbush, on the other hand, raised their price target on LB stock to $12, up from the previous target of $10. However, Wedbush rated L Brands stock as Neutral. The American fashion retailer secured $1.25 billion in its first bond sale after losing a very important deal with Sycamore Partners that would have provided the private equity firm with control of Victoria’s Secret. L Brands recently sold $750 million in secured notes at a yield 6.875% plus $500 million in unsecured bonds at a yield of 9.375%, compared to original price discussions of nearly 8% and 10.5%, said a person familiar with the matter. L Brands will use the funds to pay off debt and inject cash to the balance sheet, the person stated. Last year, the retailer secured $500 million in unsecured 10-year bonds at a yield of 7.75%. The company has been making modifications since the deal with Sycamore Partners fell apart. If the deal went through, Sycamore Partners would have gained majority stake of the Victoria Secret. “The now-abandoned deal, in which Sycamore was poised to take a 55% stake in Victoria’s Secret for about $525 million, was thrown into jeopardy in late April when Sycamore sued to terminate the transaction, arguing that Columbus, Ohio-based L Brands violated the terms of the agreement by failing to pay rent and furloughing thousands of workers amid the coronavirus pandemic. The pact to terminate the deal was mutual.”
  6. Hi James, Thanks for coming here. AMC stock has come into a spotlight of the wider public after media reported last month that the e-commerce behemoth Amazon may be acquiring the theater chain. Hence, many people do ask questions about the AMC stock and I see that there's interest in this forum as well. All in all, the AMC share price is struggling a lot this year which is completely understandable given the nature of their business. The national lockdowns imposed as a measure to stop the spread of COVID-19 meant that theaters are closed. The company operates around 600 theaters in the United States only, and the lockdown facilitated an unprecedented impact on the business and revenues. The company found itself in the media spotlight again two days ago when it said it won't require all guests to wear masks, but would rather "encourage them". This stance invited a strong backlash from the public against AMC, including some famous actors. The theater chain was then forced to reverse its decision to require all guests to wear masks when inside the theaters. “At AMC Theatres, we think it is absolutely crucial that we listen to our guests. It is clear from this response that we did not go far enough on the usage of masks. As we reopen theatres, we now will require that all AMC guests nationwide wear masks. The speed with which AMC moved to revise our mask policies is a reflection of our commitment to the safety and health of our guests,” AMC Chief Executive Adam Aron said in a statement. The stock price, as you correctly noticed, modestly recovered off the multi-year lows to trade above the $7.00 handle but that bounce was short-lived. The inability to close above this level has cost the buyers a lot as the opposite market side was able to push the price lower. Therefore, the AMC share price closed the week more than 6% in the red. All in all, I'd join Brock in advising caution when investing in the AMC stock. I don't believe that it's wise to invest in cinema stock in this environment as there are many other more profitable industries that are better positioned at this moment. Thank you for trusting is with our assessment.
  7. Luka Rice

    Germany and Dax

    Hi Phillip, thanks for coming here. The German blue-chip stock market index DAX fell on Monday due to several factors including profit-taking, weak industrial results as well as poor trade figures from China. The index lost 0.22% to 12,819 points. However, in spite of declining the overall outlook for DAX still looks promising. DAX advanced over 10% since the beginning of June and it’s currently above the 200-DMA of 12,128 points. In addition, recent US labour market reports boosted the index as there’s a significant increase in employment rate since May. The unemployment levels dropped unexpectedly, giving the reason for optimism regarding economic prospects. However, the industrial production rate in Germany was lower-than-expected in April, doubling the contraction recorded in the month before. Still, analysts believe the production rate will recover from now on but for that to happen, the second wave of COVID-19 must be prevented, said economics company Capital Economics. "However, even with the government's latest fiscal stimulus, domestic demand will probably remain sluggish and external demand will be even weaker given that the rest of Europe will be even slower to get back on its feet", said Andrew Kenningham, Chief Europe Economist. The top performer among DAX components was the stock of airspace giant Deutsche Lufthansa, which was fueled by the announcement that it will start gradually accelerating its operations from June 15. Shares of Lufthansa advanced nearly 8%. Even though there are almost no reverse signals in DAX, the index is now at its key threshold level. This is the same lower limit DAX was before the coronavirus collapse. In order to reach its record highs once again, the index would have to break above this threshold.
  8. Hi Jane, A thrusting pattern refers to a candlestick pattern used when conducting technical analysis. The pattern is created when a long black candle is followed by a white candle. Usually, thrusting pattern is a part of the bearish continuation pattern but in some cases, it can also indicate a bullish reversal. That’s why it’s always recommended to confirm the thrusting pattern using other indicators before trading it. If it’s the part of a continuation pattern, a black candle that follows the pattern should confirm the prediction and should close below the second line’s opening price. On the other hand, if the pattern is followed by a white candle, you may expect a trend reversal. In this instance, the white candle is supposed to close above the first line’s starting price. Otherwise, the candle could break out of a trendline or the closest resistance area. If a higher trading volume follows the candle, that’s a good indicator. Even though many consider it a bearish continuation pattern, statistical research has suggested that the thrusting pattern can indicate a bullish reversal. Due to the fact that it could go both ways, the traders should be prepared for a breakout in any direction when analyzing the charts. Traders are advised to enter the market only when the breakout direction is confirmed with other technical indicators. Another useful thing to do when preparing to trade the thrusting pattern is to use stop-loss orders. Traders can place the order at various places. For instance, if the price breaks above the chart pattern, placing a stop loss under the pattern’s low could be a good idea. Similarly, in case of a downside breakout, traders can put the stop loss above the high of the pattern or above the latest breakout candle.
  9. Hi Phillip, thanks for coming here. In general, decisions of the Bank of England (BoE) have a profound impact on the sterling and price developments in the currency market in general. Let me illustrate this relationship in a simple example. Two days ago, the BoE held a regular monthly meeting to discuss the recent economic developments and the impact on the COVID-19 crisis on monetary politics. The BoE decided to increase the quantitative easing (QE) program by an additional £100 billion, increasing the overall value of the program to £300 billion. The total stock of asset purchases is now £745 billion. The BoE also decided against moving into the negative territory with interest rates to keep the base interest rate at 0.1%. "Sterling sold off before and after yesterday's BOE announcement and, judging by the questions we received on it during the afternoon, we weren't alone in being surprised at the extent of the sell-off. Ourselves, we saw mainly real money buying on the way down but clearly there was a flow-driven element to the move; the BOE decision itself provided little explanation," JPMorgan's analysts wrote in a note. The pound moved lower before and after the BoE announcement, which means that these high-impact events almost always bring higher volatility. In some cases, moves in the currency market can't be explained as investors tend to process the latest information received from the BoE. All in all, the BOE-related events almost always bring fun to the markets. An advise that I can give to novice traders is to stay away from the high-impact events as they bring higher volatility. Technically, the pound broke below the critical support in the short-term following the BoE meeting on Thursday, 19 June. This break can facilitate lower levels in the coming week with $1.2270 the next target for the sellers. I hope you found my answer hopeful.
  10. Hi Hakiza, thanks for the question. As Koby mentioned in his post, Chainlink looks like an interesting digital asset in the short-term. This is mostly due to the recent developments connected to the Chainlink platform, which has been placed on the list of the TOP 100 technology pioneers by the World Economic Forum (WEF). “Using smart contracts on the blockchain to bring enforceable guarantees to contractual obligations has widespread social and economic benefits. We’re proud to play a role in bringing accountability and automation to global and local economies, and we look forward to contributing to Forum dialogues on this challenge,” the company’s co-founder and boss of Smartcontract.com, Sergey Nazarov, said. This award is given based on community standards, such as leadership, innovation, influence and the importance of the project. Separetely, new data from the crypto analytics platform Santiment show that the number of investors owning 0.1 – 10,000 LINK is currently at all-time highs. All these fundamental indicators point towards a likely move higher in the near future. Technically, the LINK/USD price is currently up 5% on the week as the buyers are testing the resistance near the $4.20 handle. The bulls used an opportunity presented to them by the sellers, who failed to force the price action to close lower on a weekly basis. As a result, the buyers were able to return the price action back above $4.00. This near-term positive development in the price action has now created a base to push higher. The buyers are now likely to target the $4.60 horizontal resistance next in the short-term. Of course, the entire crypto market is heavily dependent on what Bitcoin does next, hence that correlation should be monitored closely. Thank you for your trust and I hope you are satisfied with my assessment.
  11. Luka Rice

    Bitcoin

    Hi Anna, thanks for the question. Although your question relates to Bitcoin price analysis in May, let me follow up on the latest developments and see where we stand in June. In the last week or so, Bitcoin has been trading pretty much in the sideways manner. The range is tight as the price action trades between $9,100 and $9,500. This situation comes after the buyers failed to clear $10,000 resistance in the second attempt in the past few weeks. Fundamentally, the latest data show that the market’s biggest players, the so-called whales, have continued to stockpile Bitcoins. According to the blockchain analytics company Glassnode, the number of Bitcoin whales was 1,840 as of the last week. This figure is 2% higher compared to the number of whales present on May 1. On Monday, the number of Bitcoin whales hit a new high - 1844, which is the highest level recorded since November 2017. This situation is likely a result of the post-halving accumulation of Bitcoins, which on the other hand, indicates the optimism among investors when it comes to Bitcoin’s long-term prospects. Technically, Bitcoin price looks depressed around $10,000. However, analysts at Bloomberg believe that Bitcoin might hit an all-time high of $20,000 before the end of 2020. One of the reasons that indicate this situation in the near future is exactly the consistent accumulation of BTC that might ultimately cause the Bitcoin price to rise well above $10,000. “We are bullish in the medium term with a target of $12,000. Bitcoin is currently trading as a ‘risk asset’ and will likely be subject to continued volatility as further US economic data is released in the coming days,” said Matthew Dibb, one of the founders of Stack, a provider of digital asset trackers and index funds. All in all, Bitcoin bulls may have opted to force the current situation and consolidate gains above $9,000. This way, they are setting up a base before launching a powerful attempt to clear $10,000 and target $11,500 - $12,000 next. I hope you found my assessment helpful.
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