Tomasz Wisniewski
Axiory Global Ltd.
Last week, we were analyzing the S&P 500 and mentioned the most important line on the market – the long-term down trendline connecting the lower tops in the entire 2022. Traders worldwide were seeing this line and wondering if we will see a bounce and a following mid-term drop or a breakout and a following bull market.
We do not have to wonder about this anymore as on Monday, SP500 finally broke this down trendline establishing a mid-term buy signal. At first, traders were hesitating as other indices were not following this optimism. Two crucial sessions happened on Wednesday and Thursday. On Wednesday, SP500 tested the down trendline but this time from the top, and created a beautiful hammer candle, which showed a rejection of the lower levels. On Thursday, the price rose significantly, establishing new yearly highs, which is a confirmation of bullish momentum and the entire concept of the bullish breakout.
With all this, the sentiment is positive and the next few weeks should be bullish. A positive scenario will be canceled, when the price will come back below the red downtrend line but chances for that are now rather limited.
Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.
Recommended content
Editors’ Picks
AUD/USD pressures as Fed officials hold firm on rate policy
The Australian Dollar is on the defensive against the US Dollar, as Friday’s Asian session commences. On Thursday, the antipodean clocked losses of 0.21% against its counterpart, driven by Fed officials emphasizing they’re in no rush to ease policy. The AUD/USD trades around 0.6419.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday during the early Asian session. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
With all eyes peeled on the halving, Bitcoin is the center of attention in the market. The pioneer cryptocurrency has had three narratives this year already, starting with the spot BTC exchange-traded funds, the recent all-time high of $73,777, and now the halving.
Billowing clouds of apprehension
Thursday marked the fifth consecutive session of decline for US stocks as optimism regarding multiple interest rate cuts by the Federal Reserve waned. The downturn in sentiment can be attributed to robust economic data releases, prompting traders to adjust their expectations for multiple rate cuts this year.