Earnings season is a crucial time for investors and analysts, as it provides insights into how well companies have performed over the past quarter and gives indications of their future earnings. In 2023, expectations for US Q1 earnings were low due to economic challenges and rising interest rates. Surprisingly, many companies beat these low expectations, with 75% of S&P 500 companies surpassing forecasts.
Brent and S&P500 Trade Idea for the Upcoming Week
2021-08-20 • Updated
The latest minutes of the Federal Reserve’s meeting showed most Fed officials agreed they could start slowing the pace of bond purchases later this year given the progress made toward inflation and employment goals. That brought a lot of fear to the markets as S&P500 dropped to the bottom of the rising channel and NASDAQ fell to the 50-day moving average. Today traders await
the release of the US unemployment claims and Philly Fed Manufacturing Index.
Let’s start with Brent as oil is the main markets’ driving force.
Brent, 4H chart
Brent broke through the support line which used to hold it since May 2021. As usually happens, when price breaks through the massive level it returns and tests it once again. That’s why we assume Brent to return in the $68-69 range.
US500, Daily chart
US500, 4H chart
It is important to watch both assets, as changes in oil price tell us about the perspectives of economic recovery. It might be a good time to open US500 short trade as soon as Brent reaches the support line for a retest. Until then, it is a long trade opportunity.
When I started trading stocks a few years ago, I often needed to pay more attention to my technical analysis skills and trust that the market would play fair according to my analysis. I have since discovered that the safer approach to trading stocks is to, more often than not, seek out investing opportunities - that is, catching stock commodities with a potential to rise.
The S&P 500 had a good week due to the impressive start of Q1 earnings and favorable inflation data. In March, the consumer price index rose 5%, lower than the previous month's 6%, and met economists' expectations.
Intraday and swing scenarios based on price action and volume profile.
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Last week I gave a trade idea on XAUUSD with a target around the $2,020 price line. At the time of writing, XAUUSD already exceeded the target and I’m sure that would leave a lot of people wondering what to expect next. Below, I have presented my view of how I expect the price action to turn out in the meantime.