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Jordan Maddison

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  1. Hello Grace, Tokyo’s Nikkei Index could drop when the trading resumes on Monday, after the initial weekly jobless claims count in the US rose for the first time in 4 months, to 1.416 million. This figure beat the market estimates of 1.30 million. This could indicate the resurgence of unemployment, following a second Covid-19 large=scale in some of the states of the US. The recovering US trading session may have affected Asian stocks at the open. However, it is more likely that this represents a healthy correction instead of a big reversal of the bull market, given that US corporate earnings continue to look good. Over 80% of the S&P 500 companies that posted earnings results have exceeded analysts’ estimates. Nikkei components are consolidating near the key support level at 22,550, where its 20-Day Simple Moving Average (SMA) is positioned. Dropping under this level could send the index further down towards the 22,480 (10-Day SMA), followed by the major support at 22,000.
  2. Hi Jane, The Ichimoku Cloud refers to a group of technical indicators designed to determine support and resistance levels, momentum and trend direction. The indicators achieve this by taking several averages and outlining them on the chart. Ichimoku Cloud also uses the averages to calculate a so-called “cloud” which serves to predict where the price could find support or resistance. The method was designed by Goichi Hosoda, a Japanese journalist, and put to service in the late 1960s. The cloud offers more data points compared to a standard candlestick chart. The Cloud consists of five lines or calculations, and two of them form a cloud where the difference between the two lines appears shaded. To calculate the Ichimoku Cloud, you could add the indicator to your chart and it will do the calculations automatically, but there’s also a way to do it manually.
  3. Hi Dennis, thanks for joining us. A Bull Call Spread is an options trading strategy used by traders to make a profit from a gradual price rise in the underlying stock. The strategy is made up of one long call with a lower strike price and one short call with a higher strike price. Both of them involve the same underlying stock and have the same expiry date. It is set up for net costs and profits as the price of the underlying stock increases. The profit is limited in case the share price rises higher compared to the strike price of the short call, and the possible loss is limited if the stock price drops below the strike price of the long call. While the main advantage of the strategy is its ability to cap the losses, the main disadvantage is that the gains are capped as well.
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