Unicorns Companies Loses Momentum is it Time for Stock Markets?

Technology companies known as unicorns seem to be missing momentum. The current season of publication of income of the technologic sector appears to be moving away from the interest of the investors.

According to a ranking published by Fortune magazine, among the ten unicorn companies, the list is headed by Uber (NYSE: UBER) and bottomed is by Pinterest (NYSE: PINS).

UBER disclosed its third-quarter revenue on Monday, November 4. The company reported a net loss of $ 1.16 billion, higher than the losses of $ 986 million reported in the same period of 2018. UBER this week accumulates losses of 14.15%, reaching $ 25.58 per share.

Nasdaq 100 index during this year advances 33.23% (YTD). However, in a record high context, the inevitable question is, how much longer will this euphoric sentiment led by the technology sector continue?

Technical overview

 The Nasdaq 100 index big picture illustrates a rally that continues reaching new all-time highs. According to the Elliott wave theory, the current structure suggests that the technologic index runs in an incomplete ending diagonal pattern.

The current formation moves inside the fifth wave of Cycle degree, labeled in blue. This upward path started on the late of December 2018, when Nasdaq found buyers at 5,871 pts.

Looking at the 4-hour chart, we see that Nasdaq moves inside of wave (C) of intermediate degree labeled in green. The wave (C) began on October 02, 2019, when Nasdaq found buyers at 7,646.50 pts. Remember that the Elliott wave theory says that this segment must have five waves.

In the same timeframe, the technologic index shows the price unveils to the price action running in the wave 5 of Minor degree labeled in blue.

As a summary, the Nasdaq 100 index moves mostly bullish in an ending path. This sequence shows the price running in the fifth wave of the Minor degree, inside the fifth wave of Intermediate degree, of the Primary degree, of the Cycle degree.

Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex Analysis

Editors’ Picks

EUR/USD: Bullish breakout faces next challenge at 1.1150

The EUR/USD pair closed the week at around 1.1100, its highest settlement in two months, as poor US data coupled with a relief rally of high-yielding assets ahead of the close. Several European countries will start the week celebrating a holiday.


GBP/USD: Post-Brexit relationship taking centre stage

The GBP/USD pair hit 1.2393 on Friday, a two week high, retreating sharply from the level ahead of Trump’s speech to later recover on relief and settle at 1.2345. Cable is technically neutral, although the bullish potential seems limited.


Cryptocurrencies: $348M in matured derivatives boost the market

Futures and options contracts' expiration brings a wave of volatility to the crypto market. Ethereum takes advantage and attacks resistances in the market dominance chart, Bitcoin goes back. Ripple disappoints despite regaining the third place in market capitalization.

Read more

Canada's economy falls by 8.2% annualized in Q1, better than expected, USD/CAD shakes

The Canadian economy squeezed by an annualized rate of 8.2% in the first quarter of 2020, better than -10% expected. Quarterly, Gross Domestic Product (GDP) squeezed by 2.1%. Most of the downfall occurred in March, with a drop of 7.2%, better than 8.5% projected. 

Read more

WTI drops 4% and eyes $32 mark amid risk-off, weakening demand

The selling pressure around WTI (July futures on Nymex) accelerates following the break below the 33 level, as bears now target the 32 support zone heading into the key US macro data and US President Donald Trump’s response to the Hong Kong issue.

Oil News

Forex Majors