Forecast for the week November 6th through November 10th:
Bitcoin is a perfect trend instrument. Uptrend is speeding up and now it might be the time to join in to this tendency for two reasons. Firstly, on the previous week CME Group, that operates the world's largest options and futures exchange, announced its plans to launch bitcoin futures. It effectively means Bitcoin recognition as financial instrument not only in USA but also in the rest of the world, as investors from all over the world are involved in CME trades. Earlier many traders doubted, whether cryptocurrencies will fit financial markets format, now, on the contrary, investors are lining up to get Bitcoin. Secondly, cryptocurrencies are considered risk assets, therefore they are sensitive to changes in dynamics of VIX. At the moment the index is declining, which has positive impact on bitcoin. Trading signals: Buy 6899/6545 and take profit 7370.
Now oil is trading at twenty-seven-month high, and moderate rates drop is likely to happen during this week. One of the reasons for correction towards $62 per barrel is growth of oil output in USA to the level of two-year high. In early November investors closely followed OPEC news and completely forgot about American shale oil producers, who managed to compensate the loss after hurricanes and increase production volumes. Another reason to sell oil is the strengthening of US dollar. At the moment USDX is at its three-month high, which is negative for oil, oil products price is quoted in US dollars. Trading signals: Sell 64,30/65,05 and take profit 62,00.
This week the second largest Russian bank VTB is to release its nine month financial results according to International standards. Positive release may be expected, which will in turn boost up VTB shares price. Earnings Seasons always cause high volatility, which gives great opportunities to earn. Why is positive data likely to be released? In October the bank released report for 8 months of this year. The report pleased investors with positive data and rates. Net profit increased by 160%, and net margin increased by 0.5% to 4.1%. Rapid growth of key rates allows us to count on strong data this time. This will support VTB shares. Trading signals: Buy 0,0596/0,0586 and take profit 0,0609.