Nick Batsford, CEO of Tip TV, was joined by Zak Mir, technical analyst for Zak's Traders Café, and Alan Green, CEO - Brand Communications, on the Tip TV Finance Show to discuss the future for the S&P 500, the EUR/GBP, as well as a focus on the UK and Europe and a stock outlook.
More strength in the S&P 500
Batsford highlighted that on Friday the S&P 500 achieved both a close above its 200-DMA and also its September price spike. He continued that the low from Friday at 2020.46 now needs to provide support, as moving beneath it on a closing basis would negate the breakout above the bottom’s neckline. He believed that the indicators are not yet overbought, so more strength is to be expected over the next few days. Mir added that the S&P 500 went through a bull flag and then a breakout, thus he noted that it is in a mid-move consolidation and has on reason to be down.
EUR/GBP: bullish break failed, focus on Carney and the ECB
Batsford moved on to FX Street, who noted that the bullish inverted head and shoulder break failed, and they added that doors are open for a re-test of 0.7440 if it can hold the 0.7260 level after the ECB announcement, but below this level would be bearish. This rebound would be possible if the ECB stays put, and thus Draghi will be unlikely to hint at more QE or a rate cut, and also if Carney and the BoE turn dovish at testimony.
Stock Outlook
According to Mir, ASOS is looking strong with a bounce of the 50-DMA and a key reversal to the upside, he targeted the 200-DMA at £35.
Mir continued to Gold, which he believed to be dancing either side of the 200-DMA, and concluded that it needs confirmation before we see a new leg in either direction.
He noted that INSP has been a recent riser, and bounced of its 10-DMA as well. As it remains above 0.4, Mir believed the target to lie around 0.8.
Green reflected on IMC exploration which he mentioned in his last appearance on Tip TV, he reminded viewers that it has a great deal with Koza Gold and is hopefully heading for the main market before the end of the year.
Watch the video to see more analysis on BARC, ITV, ALL, IMG, MYSQ and the DAX.
Bullish on UK and European equities
Green outlined that he remains bullish on European and UK equities and expected a Santa rally in the build up to Christmas as long as the ECB doesn’t do anything stupid. Mir contributed that Carney is expected to speak about a Brexit today, and he believed that the UK government is more pro-EU than they let on.
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