Interesting Week | 08 Diciembre 2017

Forecast for the week December 4th through December 8th:

BTC:

Capitalization of the most popular digital currency in the world is about to reach 200 billion dollars. Uptrend is still relevant and it might be the time to go long for two reasons. First of all, Bitoin is a risk asset that is strongly affected by capital flows. Investors are actively buying risk assets. For instance, American stock index S&P500 is testing new highs and renewing historical high. Bitcoin has a strong correlation with S&P500. Second of all, on December 18th Chicago stock exchange CME Group is to launch futures trading, which will boost cryptocurrency demand. Besides, another American stock exchange will launch bitcoin futures trading in early 2018. That's the stock exchange Nasdaq, which has futures section. Trading Signals: Buy 10300/9800 and take profit 11300.

Brent:

Long-awaited OPEC summit has finally been held, and oil cartel hasn't disappointed investors, as production cut agreement has been extended till December 31st, 2018. That is a positive signal for the market. This agreement allows cutting oil inventories in the world's largest storages. Decreasing supply will positively affect oil prices. Some traders can disagree and say that the market has already taken into the account OPEC decision. I wouldn't agree with that, as OPEC had two options to choose from: either to prolong agreement till September 30th or till December 31st. The first option was fully taken into the account by the market before Vienna meeting, and second option was in question. Trading signals: Buy 63,10/62,15 and take profit 64,53.

JP Morgan:

USA Fed may raise the interest rate by 0.25% next week already. Usually media try to scare us saying that Fed rate hikes negatively affect stocks. However, there are shares that only benefit from that. These are bank shares, especially the largest American credit institutions. Fed rate hikes boost growth of bank credit interest rates, which in its turn leads to growth of financial institutions' net profit. So, the more often Fed raises interest rate, the more profit commercial banks will get. At the moment in USA it's JP Morgan that is characterized by high profitability and perfect for opening long positions. Trading signals: Buy 103,90/102,11 and take profit 105,19.