Cycle Trading: Bullish Bias

LikesMoney Independent Analyst

On Thursday we discussed how we were unclear if day 45 hosted the daily cycle low. While we still lack clarity, stocks do have a bullish bias.

A break below Thursday's low of 2566.33 would provide concrete evidence that stocks were declining into an extended daily cycle low. And a break above last Tuesday's high of 2597.02 would eliminate any doubt that day 45 hosted the daily cycle low. Since neither has occurred we will look at what is available.

First off we can say that stocks still closed below the 10 day MA, which is bearish. But that is countered by stocks forming a swing low and closing above Thursday's high. We can see that the RSI is beginning to turn higher. Stocks also formed a bullish engulfing candle on Monday. And stocks continue to close above the upper daily cycle band, remaining in a daily uptrend. All of this points to a bullish bias for stocks.

Author

LikesMoney

Independent Analyst

Assets (such as stocks, gold, and the dollar) have identifiable cycles.

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold jumps above $5,000 as China's gold buying drives demand

Gold price rises to near $5,035 during the early Asian session on Monday. The precious metal extends its recovery amid a weaker US Dollar and rising demand from central banks. The delayed release of the US employment report for January will be in the spotlight later on Wednesday.

Week ahead: US NFP and CPI data to shake Fed cut bets, Japan election looms

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.