Technical Analyst, Saxo Bank
Electronic Arts EA is a very volatile stock illustrated by the big shadows or wicks on the weekly candlestick chart.
Longer-term EA seems to form an Ascending triangle like pattern – see monthly chart.
RSI is showing positive sentiment and if EA can stay above its lower rising trendline it could built an uptrend to test strong key resistance around $150.30.
A close below the rising trend line AND below 109.24 could fuel a sell-off down to around $86-74.
First indication of this scenario to play out would be a close below 114.
Match Group (The online dating company) is opening above its medium-term steep falling trendline. If closing above, there is likely to be more reversal potential ahead.
There is no divergence on RSI but price can reverse despite this. Match Group could bounce around $75 where there is some resistance but there is room up till around 94-100.
If Match share price slides back and closes below 40.20 the down trend is likely to continue towards 33. First indication of the bearish scenario to resume and continue is if Match closes below its falling trendline.
Airbnb opens 6% lower at $102.65. If Airbnb closes below 99.70 down trend is confirmed. And share price is likely to drop to July lows around 86.75.
Medium-term the pas couple of months look like just a correction after the heavy sell-off in the first half of 2022.
RSI is showing negative sentiment on weekly time period and if closing below 40 the down trend is confirmed resumed. A down trend that could push Airbnb to new lows below 86.75. A weekly RSI close below its rising trendline is likely to be first indication of this bearish scenario to play out.
2024: The wasted year
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.