Tech Stocks

Bitcoin is Finished? US Dollar says otherwise!

If traders believe that DXY will still act as a number one indicator for Bitcoin, they ought to expect Bitcoin to bounce.
China has been on a rampage trying to crackdown on cryptocurrencies, threatening banks and miners throughout the country. Over this past weekend, China ordered domestic banks and payment platforms to prevent provides services linked to trading of virtual currencies. As a result, Bitcoin has been selling off on fears that way forward for currency might not be Bitcoin, but rather simply digital fiat currencies. However, China isn’t the sole one spreading fear into crypto HODLers. An Elon Musk tweet can send Bitcoin in either direction, counting on how he feels that day. The United States government retrieved ransom Bitcoin, which until now , was thought to be untraceable. additionally , more and more officialdom within the US and round the world are calling for regulation of cryptos (governments always way their piece of your money!).

So, Bitcoin is moving lower. In February, Bitcoin began forming a rounding top formation and reached its all-time high on April 14th at 64895.22, which happened to be an equivalent day because the Coinbase IPO (coincidence?). On May 10th, the cryptocurrency began to unload aggressively and stalled near 30,000. Bitcoin consolidated during a flag pattern from May 10th to June 22nd between 30,066 and 41,341. On June 19th, the 50 Day Moving Average crossed below the 200 Day Moving Average forming a “Death Cross”, which because the name may imply, may be a bearish signal. Today, price broke below the 30,066 lows and therefore the bottom of the flag. The target of a flag pattern is that the length of the flag poll added to the breakdown point from the flag, which during this case targets near 11,500.

If we overlay a chart of DXY (blue line) on a chart of Bitcoin, it appears that the US Dollar Index has been leading BTC since February. Price in DXY formed 3 higher highs before Bitcoin. The US Dollar then began moving lower on March 30th, before the Bitcoin selloff which began in April 14th. DXY bottomed on May 25th and commenced moving higher, with a breakout on June 16th (FOMC). The US Dollar Index traced to the 61.8% Fibonacci retracement level from the March 31st highs to the May 25th lows, near 92.00. If traders expect this relationship to continue, BTC could also be certain an aggressive bounce soon. It’s difficult to work out where BTC may bounce to if it’s following DXY, as we don’t yet know if today’s low goes to be the low to live from. However, if we assume it’s , the 61.8% Fibonacci retracement in Bitcoin from the April 14th highs to today’s lows is near 51,030!

BTC by itself points to a continued selloff to close 11,500. However, the present relationship between US Dollar and Bitcoin points to a bounce to 51,030. Which is right? If traders believe that DXY will still act as a number one indicator for Bitcoin, they ought to expect Bitcoin to bounce. If traders feel the flag pattern may be a more reliable formation, BTC will move lower. Perhaps BTC won’t reach either level. However, if Bullard and Kaplan still be hawkish, while Williams and Powell still be bearish, there’s bound to be good 2-way action within the coming months in both BTC and therefore the US Dollar!

S&P 500 finds support: Record highs in sight?

With major US indices during a seasonal “quiet period” between earnings seasons and therefore the ate up hold, traders are likely to require their cues from technical developments
This week’s bloodbath within the crypto markets is garnering all the headlines, but yesterday’s big bullish reversal in global stock indices is that the more important development for many traders and investors.

Following a period of low volatility, markets were spooked by hotter-than-expected inflation figures and last week’s big hawkish shift from the Fed, resulting in the S&P 500’s worst week since February. The elastic band snapped back yesterday, with the index seeing a pointy 1.4% rally off support from the 50-day exponential moving average and therefore the bottom of the well-established bullish channel.

With major US indices during a seasonal “quiet period” between earnings seasons and therefore the ate up hold, traders are likely to require their cues from technical developments, a minimum of until next Friday’s Non-Farm Payrolls report, and from a purely technical perspective, the bias for the S&P 500 remains bullish. After two months of consolidating near record highs, yesterday’s price action created a “Bullish Marubozu” candle, signaling strong buying pressure throughout the day:Considering the strong support from the 50-day EMA and rising channel, also as a uniform floor at 40 within the RSI indicator, bullish traders could consider buy trades near current levels with stop losses below support within the 4150 area and a target somewhere in record high territory around 4300+.

This general technique, where you limit your downside risk while trading within the same direction of the established trend, can help put the chances in your favor over the end of the day , though a person trade can always still fail.

Chip company stocks to watch in 2021

Chip companies are within the spotlight thanks to the worldwide shortage of semiconductor supply caused by increasing demand during Covid-19 – and this high demand has been great for semiconductor stock prices. Discover how chip stocks have performed and therefore the companies to observe .
What are semiconductors?
Semiconductors, also referred to as chips, are utilized in electronic circuits to conduct current – but only partially, because the name implies. Most semiconductors are made out of silicon and are an important a part of all electronics. Without them, there would be no smartphones, radios, TVs or computers.

What are chip companies?
Chip companies are the companies involved within the design and/or manufacture of semiconductor chips and related parts. they’re thought of as a part of the technology sector but also are manufacturers – as like all manufacturer , a chip company’s supply chain is reliant on commodities.

Chip companies are the drive behind tons of trends because of their use in just about every sort of device . a number of the foremost prominent trends are:

Connectivity – including 5G mobile networks
Computing – like graphics processing units (GPUs) for gaming
Healthcare – for instance within the automation of surgeries through robotic assistance
Military systems – like computers, sensors, switches and amplifiers
Transportation – most notably the increase of electronic vehicles (EV)
Semiconductor industry performance
Semiconductor stocks generally performed extremely well in 2020 as they were shielded from the continued health crisis by a boom in consumer electronic sales, also as cloud computing and online gaming.

And as demand for chips reached new highs, supplies ran low, causing a worldwide shortage of semiconductors. Demand for mobile-device chips was expected in 2020 with the shift to 5G but increasing demand for PC chips amid Covid-19, caused massive issues with supply chains. The chip shortage didn’t really hit the broader market until car manufacturers – including General Motors Co and Ford Motor Co – announced they’d need to halt production on some models thanks to the shortage of semiconductors.

If the shortage continues, it’s expected that this may only push chip stocks into higher valuations. In fact, most chip companies are reporting above expected earnings for 2020, surprising markets and pushing share prices even higher.

As a result, the PHLX Semiconductor index was performing well above benchmark indices the S&P 500 and Nasdaq composite in February 2021. It had gained 433% within the past five years, compared to only 104% and 208% for every benchmark respectively.

The semiconductor industry remains extremely volatile, which may present opportunities for going both long and short. you’ll speculate on rising and falling markets with CFDs.

Ready to open an account? start trading chip stocks today or practise during a demo first.

Who are the highest semiconductor manufacturers?
The top five chip companies within the world by revenue are:

Intel – $77.9 billion 1
Samsung – $60.39 billion2
TSMC – $45.05 billion3
Broadcom – $23.88 billion4
Qualcomm – $23.53 billion5
Micron – $21.44 billion6
ASE Technology Holding – $17.12 billion7
NVIDIA – $16.68billion8
Texas Instruments – $14.46 billion 9
STMicroelectronics NV – $10.22 billion10
In terms of nations , South Korea currently leads with a 25% share of the world’s advanced chipmaking capacity, followed by Taiwan, Japan and China. The dominance of those countries, particularly China, caused concern for US politicians who believed it had been a threat to US commercial and military developments. US chipmaking capacity has plunged from a 3rd of the market in 1990 to only 11% in 2021.

Chip company stocks to observe
There are quite 750 companies within the semiconductor industry, all competing to create subsequent hot device or power future tech. So, with plenty to settle on from, your decision about whether to trade an outsized cap, mid cap or small cap conductor chip will depend upon your strategy and therefore the research you’ve done. Remember, past performance is not any guarantee of future results.

We’ve compiled an inventory of six popular chip companies to observe . While a number of these stocks also are on the list of largest semiconductor producers, there are some smaller companies that have also caught tons of market attention.

  1. Taiwan Semiconductor Manufacturing Co (TSM) shares
    Taiwan Semiconductor Manufacturing (TSM) is one among the most important independent pure-play foundries – businesses that only create chips and don’t have any design capabilities themselves. This leads most other semiconductor companies to outsource their manufacturing to TSM.

Taiwan Semiconductor has been one among the highest performing stocks within the industry but was a surprise star for several . TSM stock gained over 25.2% in January 2021 alone after Intel discussed outsourcing a number of its processor production to the corporate .

When the worldwide chip shortage occurred, TSM took matters into its own hands and has already checked out expansion opportunities in Japan and has secured a affect Apple (APPL) to develop a complicated display technology.

  1. Broadcom (AVGO) shares
    Broadcom may be a global designer, developer and supplied of semiconductor devices. In it’s Q4 2020 earnings, it reported a 11.9% revenue growth and 56.3% net growth. Semiconductor solutions’ revenues (75% of Broadcom’s total net revenues) totalled $4.83 billion, which was a rise of 6% from Q4 2019.

This boost was because of 5G sales coming in above expectations, which was because of increasing spending by telecommunications companies, also as higher cloud spending by data centres. Broadcom’s business model also includes a large enterprise software unit, a rarity within the semiconductor sector.

For the financial year ending October 2021, the chipmaker is predicted to earn $26.28 per share, which is a rise of 18.6% from the previous year.

  1. Qualcomm (QCOM) shares
    Qualcomm (QCOM) may be a semiconductor and telecommunications company that designs and sells wireless communications goods. Most telecommunications companies use its code division multiple access technology (CDMA) which may be a core component of wireless developments.

Qualcomm also creates Snapdragon chipsets for mobile platforms, which are designed to be extremely fast and efficient – they’re expected to be one among the most beneficiaries of the move to 5G connectivity. In fact, Qualcomm noted on its Q4 earnings call that its chips for 5G handsets were one among the core drivers of growth.

  1. Advanced Micro Devices (AMD)
    Advanced Micro Devices surprised the market in January 2021 with its record Q4 income statement – smashing all expectations for revenue growth and earnings. This was largely because of demand for the company’s higher-end processors – approximately 1 million units of its latest Ryzen 5000 processors were shipped during the quarter.

The company’s earnings were also boosted by the booming demand for semiconductors from cloud computing giants Microsoft and Google.

AMD was significantly underperforming compared to competitors about six years ago, with massive failures in its processing units. But now it’s dominating gaming computer processing units (CPUs), leaving competitors like Intel to scramble for market share. It still features a thanks to go before its market share rivals that of our top ten, but its growth thus far has put it on the radar of Wall Street.

  1. NVIDIA (NVDA) shares
    NVIDIA reported a record revenue of $5 billion for its Q4 2020 – which may be a massive 61% rise from the previous year. the corporate dedicated this achievement to its gaming and data centre platforms. NVIDIA has seen an enormous uptick in demand for its GeForce RTX 300 series GPUs, which enable gamers access to realistic graphics and cutting-edge AI .

As NVIDIA has always been a GPU manufacturer, it’s still miles before most other companies during this area – with spending on the tech expected to around $110 billion by 2024. But it’s other areas of revenue intake too, like its data-centre networking acquisitions and connectivity hardware acquisitions.

  1. Ambarella Inc (AMBA) shares
    Video chip developer Ambarella (AMBA) has burst onto most semiconductor stocks to observe lists after strengthening its position within the AI (AI) space. the corporate is creating a variety of imaging solutions to form cameras smarter, therein they will extract data from live video streams.

Ambarella’s products are utilized in a good sort of human and computer vision applications, including security, advanced driver assistance systems (ADAS), drive recorder, autonomous driving, and robotic applications. there’s significant optimism that this computer vision (CV) will still play a task in industrial automation.

Currently, Ambarella earns most of its revenue from Taiwan.