› Market review, Feb 5 – Feb 9, 2018

Market review, Feb 5 – Feb 9, 2018

BP

On Tuesday, February 6, British petroleum earnings report is expected to be publish. For investors of all kinds - this is a great opportunity to assess the prospects for further development of the company, and for traders - the opportunity to earn on the price jump of this asset.

To assess the opportunities for entering the transaction more accurately, it is necessary to take into account the cost of the resource that the company works with. British Petroleum is the second largest oil and gas company in the world. Accordingly, in order to understand the whole picture, we need also to understand the change in the value of oil during the reported period.

For the last quarter of 2017, the average price of oil was 25% higher than in the same period in 2016, respectively, there is a high chance of publishing a positive profit report. We recommend that traders consider the opening of long positions with an average expiration period.

Market review, Feb 5 – Feb 9, 2018

Bitcoin

For a virtual currency of all names and values, this week was extremely negative. And within the month, the most popular cryptocurrency lost about half of its price.
Bitcoin fell below the psychologically important level of $ 9,600 and touched $ 7700 on Friday, and then rolled back to $ 8961. The probability of breaking through the level of $ 9500 is quite low, therefore, after the end of the corrective rollback - there is a big chance of continuation of the downward movement to the level of $ 6,600.

Things, that at one time has attracted most traders and investors to this cryptocurrency, now, scare them off. Bitcoin exchange is not regulated, noone is protected against loss and fraud, which is an excellent tool for manipulation and tax evasion, and the governments of the most, if not all, countries are not ready to accept it.

Quite remarkable is the statement of Morgan & Stanley analysts: if bitcoin can not be used for payment, then it has zero value. Besides, at the moment we can report that the practical benefits of all crypto are falling.

Market review, Feb 5 – Feb 9, 2018

Google

Google Inc. - includes more than 50 major projects and subsidiaries, each of it somehow makes our life more comfortable and easier. The price of its stocks is steadily growing, that is confirmed by the reports, for the last quarter total incomes grew by 24% (for the same period last year 22%).

Last Friday (02/02/2018), the market reacted quite sharply to the significant strengthening of the dollar with positive data on unemployment and salaries in the US. Shares of such companies every year will be only more expensive, and now a great opportunity to buy cheaper.

The chart clearly shows that before each stock growth, the consolidation takes place, significant growth has been noticed since the beginning of the year, a bearish pullback with the gap was due to a strong strengthening of the "greenback" and revaluation of shares on this ground. The forecast is for growth, after covering the gap, the increased price, consolidation for the next month, which will give enough opportunities for entry.

Market review, Feb 5 – Feb 9, 2018

Eur / Usd

Bear has conquered eurozone last week, report from the US was good enough not pay attention to it, the stormy reaction of the market was observed only right after the release of NFP data. The euro reached its four-year highs, as the level near 1.25 could be observed in 2014. The euro / dollar formed a double top, breaking the bullish trend. In the near future, we expect the tests of the levels of 1.2441-1.2419, in case of confirmation of the confident correctional movement of the dollar we will go further to 1.2391, in case of breaking through this level we will go to a stronger 1.2325. But the week promises to be no less interesting, tonight we expect the speech of the head of the ECB "super" Mario, tomorrow the speech of the president of the Bundesbank Weidmann and the speech of FOMC member Bullard and the next report from the US labor market. We are watching the correction down after the double top, then we observe the reaction of the market to performances and reporting.

Market review, Feb 5 – Feb 9, 2018


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