Day: October 24, 2024

BOJ Inflation Rhetoric Tries to Cool USDJPY Momentum at 153

Posted on by Skerdian Meta

USDJPY surged almost 12 cents in October, climbing above 153 yesterday, and the Bank of Japan was on the wires making some hawkish comments. The BOJ governor Ueda was beating the inflation dram last night again, in hopes of talking the Yen higher and this pair lower. Continue reading “BOJ Inflation Rhetoric Tries to Cool USDJPY Momentum at 153” →

Tesla Pre-Market Surge Explained: Bullish Sentiment as Stock Jumps Over 10%

Posted on by Arslan Butt

Tesla’s pre-market stock price surged by 10.75% to $236.61, up from the previous day’s closing price of $213.65. This sharp rise followed the company’s third-quarter earnings report for 2024, which exceeded Wall Street’s profit expectations.

Tesla reported adjusted earnings per share (EPS) of $0.72, beating analysts’ estimates of $0.60 by a significant margin.

While revenue fell slightly short at $25.81 billion (versus $25.47 billion expected), the company’s improved profit margins and strong free cash flow were enough to drive bullish sentiment in the market.

What is Pre-Market Trading?

Pre-market trading occurs before regular stock market hours, allowing investors to react early to important news such as earnings reports.

Tesla’s pre-market surge indicates high investor confidence, signaling potential gains once regular trading begins.

The company’s ability to surpass profit expectations has fueled this optimistic sentiment, despite slight revenue misses.

Tesla’s Q3 Performance: Strong Earnings and Financial Stability

Tesla’s Q3 2024 earnings report revealed adjusted EPS of $0.72, a 12% beat over expectations. The company’s operating margin climbed to 10.8%, up from 7.6% in the previous year.

While revenue fell slightly short of forecasts, the company’s focus on improving production efficiency led to increased profitability.

Tesla’s free cash flow also impressed, coming in at $2.7 billion, pushing the company’s total cash reserves to $33.6 billion.

This financial stability allows Tesla to comfortably pursue future ventures, including more affordable electric vehicles (EVs).

Cybertruck Milestone and Price Prediction

Tesla also marked a major milestone for its much-anticipated Cybertruck, achieving its first-ever positive gross margin. This milestone underscores Tesla’s ability to manage production costs while expanding its product lineup.

Tesla Price Prediction: Technical Outlook

Tesla’s stock has seen a significant pre-market surge, now trading at $236.61 (+10.75%). This surge comes after the release of its Q3 earnings report, boosting investor confidence.

Tesla stock price chart showing pre-market surge after Q3 earnings
Tesla stock price chart showing pre-market surge after Q3 earnings

The stock shows signs of volatility, with a notable price gap between $236 and $242, signaling potential resistance levels ahead.

Immediate resistance sits at $242.32, with further targets at $250.29.

On the downside, key support is seen at $224.32 and $213.57, with stronger support at $210.32.

TESLA Price Chart
TESLA Price Chart

The RSI of 28.91, in the oversold range, suggests that the stock could be poised for a rebound, particularly if it can sustain momentum above $236 in regular trading hours.

Key Insights:

  • Tesla’s pre-market surge to $236 reflects strong investor optimism following its Q3 earnings.
  • The Cybertruck achieved its first positive gross margin, highlighting operational improvements.
  • Tesla stock faces key resistance at $242, with further upside likely if it breaks above that level.

In conclusion, Tesla’s pre-market momentum and solid earnings point to a potentially bullish trend, but traders should watch for potential pullbacks as the stock approaches resistance zones.

 

AUDUSD Bearish Break Opens Door to 0.6350 After

Posted on by Skerdian Meta

AUDUSD has fallen more than 3 cents lower this month after the reversal above 0.69, and yesterday we saw a bearish break lower which opens the door for the next support zone. That support zone comes around 0.6350s, which is the lowest level of 2024 so far, however, there are more than 2 months left.

Australian Manufacturing and Services PMI for September

Continue reading “AUDUSD Bearish Break Opens Door to 0.6350 After” →

FTSE 100 Slips as Mining Stocks Fall; DAX Steadies Following Three Days of Declines

Posted on by Arslan Butt

On Wednesday, London’s FTSE 100 continued its losing streak, marking its fourth consecutive session in the red, driven by a sharp decline in mining stocks. Investors remained cautious, steering away from riskier assets ahead of the US presidential election and the upcoming UK budget announcement.

Both the FTSE 100 and the domestically focused FTSE 250 ended the day down 0.6%, just above the one-week lows set in the prior session.

Continue reading “FTSE 100 Slips as Mining Stocks Fall; DAX Steadies Following Three Days of Declines” →

Forex Signals Brief October 24: Services and Mfg. PMI Day

Posted on by Skerdian Meta

Yesterday the economic calendar was light in the Asian and European session, however the UD continued to push higher. Gold was also bullish early in the day, printing a new record high at $2,758, but then made a sudden reverse lower, perhaps on comments that Blinken could broker a deal between Iran and Israel. As a result, Gold price dived $50 lower, but remained above $2,700.

The services activity has slowed in the Eurozone

Continue reading “Forex Signals Brief October 24: Services and Mfg. PMI Day” →

CAC Shakes Off Weak PMI Data – ECB Policy in Front Seat, Political Woes on Sidelines

Posted on by Gino Bruno D'Alessio

And cac rallies despite poor pmi data

Data released today showed a sharp decline in business confidence and Flash PMI data. Concerns over the national budget take a back seat.

For today’s Flash HCOB Services and Manufacturing PMIs analysts had been expecting a slight increase. Instead, the market was presented with declines in both.

The Services PMI showed a provisional decline to 48.3 from 49.6 previously, while the manufacturing PMI declined slightly to 44.5 from 44.6. And Business Confidence took a hit, with a drop to 92 from last month’s reading of 98.

The [[CAC]] managed to shake off the negative surprise in the data and rallied to 0.67% on the day. Political concerns have been acting as a weight for French stocks. The govenment presented the 2025 budget to the National Assembly on October10, but investors are concerned about the weight of tax hikes on large companies.

Those concerns seem to have taken the back seat as the market follows bullish ECB sentiment, with the [[DAX]] leading the way, up 0.82%.

[[CAC-graph]]

ECB Sentiment Grows

Sentiment on dovish ECB policy action is growing. Investors are gearing up for a bumper cut in rates at the next policy meeting. The anticipation of a 50 basis point cut in interest rates for the December meeting has been circulating for a few days.

That sentiment is gaining more conviction as comments from various ECB policymakers and national central bankers call for sharp cuts. The latest official to add statements of the kind is Bostjan Vasle.

In a Reuters interview, Vasle said that the ECB should take measured steps to keep cutting rates. Adding that talk of undershooting the inflation target is unwarranted now. The central banker said that going below the neutral rate is not an issue in this environment.

The GDP growth in the ECB has been weak and is expected to decline for FY 2024. The market is beginning to believe that the ECB may act swiftly to cut rates to a level of economic stimulus. The chance of a 50bp cut in December is now at around 40%.

Warren Buffett: “I don’t endorse any political candidate or investment product”

Posted on by Olumide Adesina

Warren Buffett is concerned about an increase in impersonators who want to profit from his brand by posing as him and endorsing a political candidate or investment product on social media.

Berkshire Hathaway took the unusual step of placing a statement about the issue on its website’s home page.

The statement says: “With the rise in social media use, there have been many false allegations that Mr. Buffett supports and endorses political candidates in addition to investment goods. Mr. Buffett does not now sponsor political candidates or endorse investment products, and he never will.”

Additionally, there is a wider worry about so-called deepfakes, which utilize artificial intelligence to pose as well-known individuals for profit or other purposes. As technology advances, the images or videos get more and more realistic. Given that Buffett notably avoids bitcoin and often advises ordinary investors to purchase inexpensive index funds, anyone familiar with the investment legend’s opinions would be skeptical of any endorsement by him of a cryptocurrency or investing product

“We put that on the Berkshire website because I’m concerned about people impersonating me,” the company’s chairman and CEO explained to CNBC’sKamala Harris. If someone tells you how to vote or invest, you shouldn’t believe them.

Buffett’s remarks coincide with a contentious political season in which prominent figures from Silicon Valley and Wall Street, including Elon Musk, Bill Ackman, and Mark Cuban, are divided over the impasse between former President Donald Trump and Vice President Kamala Harris. Bill Gates is privately endorsing Harris by giving $50 million to a group that supports her campaign

XRP Crashes Despite Ripple CEO’s Confidence on Spot Ripple ETFs

Posted on by Dalmas Ngetich

XRP is down, looking at the formation in the daily chart. Even though sentiment remains bullish, favoring optimistic buyers, the short-term aligns with sellers.  For now, the coin is fast approaching $0.50, a crucial support and round number. Overall, the seventh most valuable coin remains inside a narrow range. However, this will change if bears dominate, forcing prices below the round in line with losses of early October. In the near term, traders will closely monitor how prices react at $0.50, only finding relief if there is a decent bounce towards $0.55.

As of writing, XRP is sliding, shedding nearly 5% in the last week. Despite sellers taking charge, engagement is decent, at just $1 billion, steady over the past day. A break below the $0.05 range will be a severe blow for bulls since it opens up the coin for more losses in the coming sessions.

XRP Daily Chart for October 24

The following XRP and Ripple news events are making headlines:

  • Brad Garlinghouse, the CEO of Ripple, thinks the approval of spot XRP ETFs, similar to those of Bitcoin and Ethereum, is inevitable. Bitwise–a top digital asset manager–has applied for this product.
  • In a recent interview, BlackRock executive Samara Cohen said crypto investors are emerging as the new Wall Street. The asset manager has since changed its stance on crypto, even tokenizing United States Treasuries on Ethereum.

XRP Price Analysis

[[XRP/USD]] is under immense selling pressure.

After days of sideways movement, the coin broke down early this week.

Yesterday’s confirmation could see XRP drop below the local support at $0.50 if the selling pressure is sustained.

Technically, this means that sellers in early October are back. In that case, prices can easily sell off hard to $0.45 in a bear trend continuation pattern.

However, if the coin finds support, a break above $0.55 will be a massive endorsement for Ripple.

Still, risk-off investors would have to wait for the coin to clear September highs before considering longs.

Ripple: XRP ETF is “inevitable”

Posted on by Olumide Adesina

Brad Garlinghouse, CEO of Ripple Labs, stated that XRP inclusion in a spot exchange-traded fund (ETF) in the United States was “just inevitable.”
“It is demonstrating there’s demand from institutions, and retail to access this asset class,” he said, referring to the more than $21 billion that has poured into spot Bitcoin (BTC $67,191) ETFs since January.

“Interest in XRP has increased,” Garlinghouse stated. “You’ve seen two or three ETF filings around XRP, and I think it’s just a given that you’ll see an XRP ETF in addition to Bitcoin and Ether.”
SEC has received applications for spot XRP ETFs from asset managers Bitwise and Canary Capital.

Garlinghouse highlighted that an XRP fund would “do quite well” because the cryptocurrency has a “very interested and active community” in the US and overseas.
He also stated that “more and more institutionalized participation in the crypto industry” is a trend that includes crypto ETFs.

He stated, “I think we’ll continue to see that, it puts upward pressure on the prices of different crypto assets including XRP.”

Brad Garlinghouse, the CEO of Ripple Labs, acknowledged that his company should have contacted US regulators sooner. As a result, the crypto sector and Ripple Labs are catching up after facing legal enforcement actions.

Additionally, he claimed that Ripple has been “very active” in its political contributions. The business has donated around $50 million to the pro-crypto FairShake PAC, which supported Democratic and Republican candidates. Chris Larsen, a co-founder of Ripple, announced on October 21 that he had contributed $10 million to a PAC that backed Democratic presidential candidate Kamala Harris.

Ethereum Drops As August Bears Press On: Time To Fade Aggressive Sellers?

Posted on by Dalmas Ngetich

Ethereum is falling, looking at the formation in the daily chart. In three days, the second most valuable coin lost nearly 10. The confirmation of the double bar bear formation of October 20 and 21 means that sellers are in control. So far, the immediate support is at $2,300, but for this to be valid, buyers must contain these unyielding sellers. Before then, risk-off traders can wait on the sidelines for either bear trend continuation or a welcomed reversal above $2,800 and even July high.

The series of lower lows of the past day has seen Ethereum lose double digits in three days. On the last day alone, ETH is down a discouraging 3%, compounding the misery of holders. Interestingly, the sell-off is with light engagement, standing at around $19 billion in the past 24 hours.

Traders are keeping track of the following trending Ethereum news events:

  • Even with the proliferation of Ethereum layer-2s and dropping mainnet gas fees, analysts believe ETH has a bright future. In the scramble for decentralization, Arbitrum, Scroll, and other popular rollups will have to buy decentralization from mainnet validators, lifting revenue and, thus, prices.
  • Uniswap has launched a permissionless cross-chain bridging that supports, among other things, Ethereum and most of its layer-2s. The DEX is one of the largest generators of fees and, by extension, pulls ETH demand.

Ethereum Price Analysis

[[ETH/USD]] is under pressure when writing.

There is hope that buyers will flow back and contain losses, especially after the close of the October 23 bar with a long lower wick.

Bullish as this is, Ethereum is bearish from a top-down preview.

For now, bulls must defend $2,300 to keep hope alive.

If broken, sellers may force ETH to $2,100 in a bear trend continuation pattern aligning with early August losses.

This preview will only be invalidated when there is a decisive close above August 5 highs at around $2,800.