The bullish rally in stock markets | 24 January 2020

The bullish rally in stock markets


#SP500:


We are expecting the uptrend to develop in the new five-day period. United States and China touted the Phase 1 deal, signed at the White House. U.S. Vice President Mike Pence said further Phase 2 discussions had already begun as negotiators work to resolve differences. China also has promised to open its financial services market, improve protections for intellectual property and forbid the forced transfer of technology to Chinese companies. The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 1.79% to 12.10 a new 1-month low. This is a positive signal for the stock market!


Trading recommendation: Buy 3317.4 and take profit 3350


The bullish rally in stock markets


#WTI:


Positive macroeconomic statistics from China will have a positive impact on the value of oil. Industrial output rose 6.9% in December year on year versus the median forecast of 5.9%. Fixed-asset investment rose 5.4% in the year, versus an estimate of 5.2%. The signing of the phase-one trade deal this week combined with recovering global demand have improved the outlook for Chinese factories and exporters in 2020. China is one of the world's largest oil consumers. Geopolitical tensions in the Middle East will provide additional support to the oil market!


Trading recommendation: Buy 58.81 and take profit 60.30


The bullish rally in stock markets


#MorganStan:


We are expecting a bullish rally. The investment bank said that it had $1.30 in earnings per share and $10.86 billion in revenue, which topped consensus estimates of $0.99 in EPS and revenue of $9.72 billion. The same period of last year reportedly had EPS of $0.80 on $8.55 billion in revenue. Morgan Stanley boosts return on tangible common equity goal to 13%-15% within two years compared with its previous target of 11%-14.5%. In the longer term, it aims to achieve ROTCE of 15%-17%.This is a positive signal for investors!


Trading recommendation: Buy 56.97 and take profit 58.30

 

David Johnson
Analyst of «FreshForex» company
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