Chart Advisor: Predicting Favorable Conditions

Articles From: Investopedia
Website: Investopedia

By Manuel Tellechea, CMT

1/ Risk-On / Risk-Off

2/ Oil Prices Decline

3/ The Next Challenge in Sight

4/ Heading towards $1,000

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1/ Risk-On / Risk-Off

Cross signals persist in the market. However, risk appetite remains present. It may not be as dominant as before, but it still holds a superior position.

Safe-haven assets are not currently the most sought-after in the market, with investors continuing to seek higher-risk assets to achieve greater returns.

Despite the less-than-ideal market conditions, there is still no rush towards safe-haven assets. Instead, it appears that the market is optimistic about a quarter that, on average, has proven to be favorable. Is Santa coming to town?

2/ Oil Prices Decline

The price of light crude oil is unable to maintain the $90 level and continues its descent. Following the aggressive sell-offs in the last two sessions (-4.73% and -2%), the price experienced a relatively flat session today, closing around $75.

Light crude is persistently losing strength and momentum, indicating a potential return to the $65 range in the days ahead.

3/ The Next Challenge in Sight

Speaking of risk appetite, Bitcoin appears poised to conclude another week on a positive note. With a 4.37% gain so far this week, unless there’s a significant change in Friday’s session, the cryptocurrency is set to close its fourth consecutive week in the green.

The range between $34K and $38K seems to be the upcoming zone with the highest trading activity from 2019 to the present. We might witness a period of sideways price movement around this range in the upcoming sessions.

Should BTC manage to break out of this range, it could be heading towards $48K in the next upward swing. Will it achieve this before the end of the year?

4/ Heading towards $1,000

The technology sector remains influential, with various players reaching new highs this week. Today, Fair Isaac Corporation, a company specializing in credit rating services, took the spotlight.

Following a remarkable surge, the share price temporarily stabilized after surpassing the $900 mark. After this brief pause and the formation of a base, the price has surged convincingly above resistance. Today’s session concluded with a gain of +2.37%, settling at approximately $962.

Originally posted 10th November 2023

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