Market trivia research report

Date - 27th May, Monday, 2024

01 - Key News Insights

02 - Economic Calender

Economic_Calender

03 - Previous Day Performance

Previous_Day-Performance

04 - Instructions/Guidelines for executing suggested trade

  • Close your trades within 8-10 hours or before 6:30 PM UTC (midnight IST), regardless of profit/ loss.
  • By chance, if you face losses in your “Primary Trade”, the “Alternative Call” is designed to recover those losses.
  • That’s why, always place the “Alternative call” alongside the “Primary Call”.
  • In case the “Alternative or Recovery Call” doesn’t get triggered the same day, a new call (or signal) will be provided the following day.
  • Generally, the Global Market Outlook Report includes signals with a higher reward-to-risk ratio (from 2:1 and higher).
  • Therefore, consider booking partial profits in steps as follows:

For example, if the reward is two times the risk (or 2:1), consider booking half (or 50%) of the profit when levels reach a 1:1 ratio, and maintain the remaining position.Then, when prices reach twice the risk (2:1), book the remaining 50% position.

To make this process seamless and smooth, consider placing two calls simultaneously with the same Stop-Loss (SL) and Entry-Level but different Target-Levels.

Note: These guidelines aim to optimize your trading strategy while managing risks effectively.

05 - Gold Analysis

Overview: Gold rose past $2,340 per ounce on Monday, recovering slightly from two-week lows. The increase came amid retreating speculations of multiple Federal Reserve rate cuts. Recent US economic data showed accelerating business activity and a resilient labor market.

Biasness: Gold touched an all-time high of 2450 last week. Later the prices saw substantial losses and tested lows of 2325.5, a weekly fall of around 5%. Gold seems to be forming an ascending wedge pattern. The prices are rising from the support of the lower trend line of the wedge.

Key Levels:     R1:2344       R2:2365
                         S1:2330
       S2:2300

Primary Driver of Gold: Sticky inflation in US and hawkish opinions from Fed officials have heightened volatility in the gold markets. The dollar had fallen back after data showed a slowdown in consumer price rises due to which gold seems to be witnessing some recovery.

Technical Analysis: Prices have med highs of 2347.5, but important resistance exists at 2343.90 (fib level 0.618). Hence gold looks poised to further strengthen this week. Also, prices exist in the selling zone of Bollinger band & RSI.

Data Releases: However, there are no crucial data to be released from the US docket, but Friday’s reading for the core PCE Price Index, Fed’s preferred inflation measure is expected to be steady month-on-month.

Alternative Scenario: If prices successfully breaches the ascending wedge pattern and fall below the support at 2330, then prices might further fell towards crucial support levels.

While writing the report, gold is trending at  2343.50

LOT SIZE SUGGESTION FOR ACCOUNT SIZE OF $10000: 0.30   

Gold_XAUUSD

06 - Crude Oil

Overview: Expectations of a September rate drop by the Federal Reserve contributed to a small uptick in market risk appetite and West Texas Intermediate (WTI) oil prices. WTI is moving inside of a channel on the 1-hour chart, but if it breaks over the immediate resistance around $77.90, it might climb higher. $76.70 is the immediate support price.

Biasness: As market risk sentiment has improved, WTI Oil price is making an effort to hold onto its gains. On the macro level, the 5-year Consumer Inflation Expectations for May from the University of Michigan somewhat decreased to 3.0% on Friday from the 3.1% predicted. Investor optimism about prospective rate reduction by the Fed is being supported by this fall in inflation expectations.

Key Levels:     R1: 77.90  R2: 78.50
                         S1: 77.50    S2: 76.70

Indicator: Oil’s current position traded around the middle Bollinger Band and 8-day Exponential Moving Average (EMA). One can expect an upside move if it crosses the immediate resistance mark of 77.90.

Data Releases: There won’t be any significant data releases today. Prices will fluctuate in accordance with supply and demand dynamics.

Alternative Scenario: If XTIUSD breaches an immediate support mark of 76.70, and trades below its middle band of BB and EMA which depicts a bearish view.

While writing the report, WTI oil is trending at 78.30

crudeoil wtiusd

07 - EURGBP

eur-gbp

Overview: ECB Chief Economist Philip Lane’s cautionary remarks have caused EUR/GBP to remain in the 0.8510 range. It is traded in a channel pattern technically. If it breaks the immediate support level at 0.8500, a decline is anticipated; the immediate resistance is at 0.8535. Bullish views are supported by indicators such as BB and RSI.

Biasness: The ECB proposed a June interest rate drop, which caused difficulties for the EUR/GBP exchange rate. The annual inflation rate in the UK has, nevertheless, decreased and is now approaching the 2% objective set by the Bank of England. Investor expectations of a rate cut in June have been dampened by this moderation, which may put pressure on the pound sterling (GBP) and restrict the decline of the EUR/GBP cross.

Key Levels:     R1:.08535     R2: 0.8565
                        S1: 0.8500     S2: 0.8470

Indicator: Initial support is seen at 0.8500. One can see a downside move if it breaches the same level.

Macro-Economic Factors: There are no significant data releases scheduled for today.

Alternative Scenario: EURGBP could see an upswing by crossing immediate resistance mark of 0.8535, with confirmation if it trades above Bollinger Bands and EMA middle band in positive territory.

While writing the report, the pair is trending at 0.8513


LOT SIZE SUGGESTION FOR ACCOUNT SIZE OF $10000 & 2% risk: 0.50

08 - Disclaimer

  • CFD trading involves substantial risk, and potential losses may exceed the initial investment.
  • Signals and analysis are based on historical data, technical analysis, and market trends.
  • Past performance does not guarantee future results; market conditions can change rapidly.
  • Consider your risk tolerance and financial situation before engaging in CFD trading.
  • Signals are for informational purposes only and not financial advice.
  • Each trader is responsible for their decisions; trade at your own risk.
  • The report does not consider individual financial situations or risk tolerances.
  • Consult with financial professionals if uncertain about the risks involved.
  • By accessing this report, you acknowledge and accept the terms of this disclaimer.

Safe trading,
Market Investopedia Ltd

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