Buy Brent and JP Morgan | 29 December 2017

Forecast for the week December 25th – December 29th:

BTC:

Bitcoin has set new historical high in the first day of CME trading, and then showed strong correction to the downside. Now many traders wonder, if it is reversal of uptrend. I believe that it's not. Many traders bought cryptocurrency, as they expected launch of Chicago trades. After trades were launched, we saw traders to close positions. There is well-known saying: buy the rumor, sell the fact! As risk assets demand is still high in the world, I would expect continuation of Bitcoin uptrend. In February, 2018 Nasdaq stock exchange will launch futures trading too. Considering that, why can't bitcoin hit level of $21000? Trading signals: Buy 12300/10150 and take profit 14500.

Brent:

We have mixed signals for oil trading now. We won't mention the last deal of OPEC and Russia today. No doubt, this factor supports market but today we have something else to talk about. I mean decreasing oil output in North America. According to oilfield service company Baker Hughes number of oil rigs in USA and Canada is decreasing; reduction of capital costs by energy companies is to blame. For this reason, we won't see high increase is oil output in North America in 2018. That is a positive signal for oil market. It's impossible to avoid cut in oil inventories that is observed in USA for the last 5 weeks in a row. Trading signals: Buy 64,10/63,55 and take profit 65,36.

JP Morgan:

American index S&P500 rose by 0.28% last week and securities of the largest American bank JP Morgan rose by 1.23%. Bank shares traded higher than average market price and this tendency may continue this week. There are two reasons to buy shares. Firstly, Senate reached deal on tax overhaul and now it's the key driver of growth of American stock market. Secondly, USA Fed raised rate by 0.25% on December 13th, and now growth of interest income of American banks. Trading signals: Buy 107,00/105,84 and take profit 108,39.