A Brief look At Sony 15/05/2013

The value of Forex on the shares of Sony gained close to 12% after investor Daniel Loeb proposed the separation of Sony` s entertainment division from the holding company. The investor` s proposition is aimed at following the general TV business rally which has already reached a three and half years increase. The idea is basically for a sale of 20% of Sony` s movie, music and TV business in order for the independent company to benefit from a more disciplined management, investors` attention and a larger profit for the holding company. It is expected that Sony could potentially raise $6.1bln from the sale of its division. Comparing the market value of Sony with key competitors such as Disney, Lions Gate and CBS which are all at their all- time highs, Sony appears to have fallen behind them. More detailed fundamental analysis suggests that current market price is 8 times EBITDA and shares could potentially surge 60% more in case the unit is gets partially sold.

The graph provides a clear representation of the steep upward trend, which started at the beginning of the month. The change from 1560 to 2153 more than clearly expresses Forex investors` future expectations. The Bollinger Bands provide the relative range within which Forex should be trading. The short term support level is set at the bottom at 1560 as the level indicates bearish investors` aim. The intersection of the 50 and 200 Day Moving Averages coincides with the origin of the steepest increase, suggesting the presence of a great technical analysis` credibility. The short term resistance level is set at the top at 2153, but this level is expected to be surpassed as early as the next trading session. Although the Relative Strength Index suggests a forthcoming brief correction, Forex investors could potentially benefit from the longer term positive trend.

Disclaimer: The information in the above analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.

A Brief Look at Coca-Cola 17/04/2013

The Forex on Coca-Cola rose more than 5 percent on Tuesday after the company reported its results for the first quarter. The first quarter earnings of Coca-Cola exceeded Wall Street’s expectations posting items of 46 cents per share, versus 45 cents in the same period of the previous year. The revenue of the company fell to $11.04 billion from $11.14 billion in year ago.
Reuters’ analysts expected the company to report earnings per share of 45 cent on $10.94 billion in revenue. Markets participants were surprised by the strong growth in some regions like Thailand, India, Russia, Mexico and Brazil. The soft drink giant saw more modest growth in China and United States, where volumes for the first quarter of 2013 rose by one percent in each market. Total volume rose 4 percent, led by a 15 percent in Eurasia. The CEO of the giant Muhtar Kent said that he is pleased with performance of the company in the first quarter.
Technically speaking, the bullish trend from the last several months was confirmed with the last rise above 41 level and further swings on upside could be expected. The Relative Strength Index is in the overbought zone and a cross below the 70 level would suggest for a small correction. The price is higher than its 50 moving average which is a good signal for continuation of the trend. As a firs support level in case of fall could be taken the previous high at 41.40 and a price movement below it would lead the Forex on Coca-Cola to the next support at 40.90. Only a clear break and a weekly close below psychological 40 mark could change sentiment of investors on downside. Above this level bulls will stay stronger on the market.

Disclaimer:
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.

A Brief Overview of Carrefour 13/03/2013

The value of Forex on Carrefour, one of the world`s largest retailers, declined by more than 1.6% after the company announced its fifth consecutive smaller-than-estimated annual profit. The negative news was further enhanced by the company`s pledge to lift capital expenditure in order to revive positions in the domestic French market. Capital expenditure is set to increase to 2.3bln euro and they are set to improve price perception, refurbishing outlets and part of it should go to broadening the business in Latin America and Asia. The company’s plans regarding local outlet improvement is aimed at attracting even more customers, considering the fact that French stores are 30% larger, on average, compared with outlets in other countries. Dividend proposition is for 58 cents per share, payable in cash or stocks. Net debt for the company has improved by 2.6bln to 4.32bln which actually equals 1.2 times the EBITDA numbers. The graph provides a clear indication of the significant volatility which has been present since the beginning of March. The steep positive trend` s origin could easily be referred to as the moment of the broadly improved Forex investors` economic expectation. Furthermore, trend reversal moments coincide with the intersections of the 50 and 200 Day Moving Averages, signaling the credibility of investment decisions based on technical indicators. The weak resistance level is currently set high, slightly above the psychological level of 23. An eventual breach of that level would signal a forthcoming, medium to long term continuation of the positive trend. On the other side of the spectrum, the short term support level is set at the recent low of 21.75 and an eventual break of that level would signal the presence of a short term correction of the longer term positive trend. The Relative Strength Index confirms the forthcoming positive trend, so call options investors could take advantage of the forthcoming dynamics.

Disclaimer: The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument. 

A Brief Overview of Boeing 13/03/2013

The value of Forex on one of the world` s largest airplane makers – Boeing – gained 1.47% during the US trading sessions this morning as the Federal Aviation Administration announced their approval for the redesign of the 787 Dreamliner`s battery system. The agency has allowed Boeing “limited test flights” which could be regarded to as the first step towards resuming the service of the currently grounded fleet of 787s. The current value of the shares of the company are at their highest since 2008. The redesign of the battery is aimed at minimizing the possibility of an eventual short-circuit, by adding battery insulation and venting systems. Current issues with the plane caused two emergencies; one in the US and one in Japan, which led the global fleet of 787 Dreamliners to be grounded on January 16th. Despite the current persistence of the issue, yesterday it was announced that Ryan Air has conducted a deal with Boeing for one-isle 737s valued at $15.1bln. Cathaway Pacific-Asia` s largest carrier was also announced to have demanded a renewal of its Boeing fleet which further contributed to the relative increase of the company` s capitalization. The graph clearly indicates the current increase in the value of Forex on the shares of the company. The origin of the upward trend coincides with the intersection of the 50 and 200 Day Moving Averages which provides solid grounds for technical analysis. The first support level is set at yesterday` s low at 83.50 and an eventual break of that level would signal the presence of a brief short term correction of the medium term positive trend. On the other side of the spectrum, the weak resistance level is set at the top at 84.50. The numerous breaches of the Upper Bollinger Band suggest that call options investors tend to prevail over the bearish ones. The Relative Strength Index reads in the overbought zone, so Forex investors should be careful when placing call orders.

Disclaimer: The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument. 

A Brief Look At DAX 12/03/2013

The German DAX index is trading mostly unchanged after the annual statement of the Bundesbank. The German bank almost doubled its risk provisions in 2012, citing increased potential for losses stemming from the ECB monetary policy. Bundesbank increased provisions for general risk from 6.7 billion euros to 14.4 billion euros.

The European Central Bank injected more than 1 trillion euro in the banking system on the old continent with two three-year refinancing loans. Some 22 percent of those loans have since been paid back as the ECB’s pledge to buy unlimited government bonds if certain conditions are met eased tensions on financial markets. In his speech after the statement Weidmann said that German growth can be expected to pick up during the course of the year. Over the last year the German economy has grown 0.7%, with these numbers being confirmed by the Bundesbank.

Expectations for 2013 are for growth to slow to 0.4%, however this news didn’t affect much on the Forex on DAX.

On the other hand, European shares were under pressure after the announcement that Manufacturing Production in the U.K. fell to -1.5% from 1.5% for the previous period. Analysts expected the percentage to fall to 0.0%.

Forex on the DAX are trading around a psychological level of 8000. On Monday, the price of the German major index tested the zone but closed the day below it. The next test of the zone could be seen very soon as general positive movement for the global economy triggered sharp rise last week. If we see a clear break and weekly close above 8000, the next target will be set at an all-time high of 8239. In the short term view, first resistance above 8000 is at 8115. On the downside, first major support could be projected around 7860. Price movement through this level would lead the price towards 7557. The last level is crucial for the bullish trend and a break there would unlock negative sentiments of investors and we could see deep decline of the Forex on the DAX. Until this level holds, the bullish momentum will probably stay intact.

Disclaimer:

The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument. 

A Brief Look At Dow Jones 08/03/2013

Forex investors have probably noticed that the leading industrial index in the US has hit its highest level since June 2008 and an all-time high. Alongside the US dollar touched a fresh 3-1/2-year high against the yen on Friday, which is supporting indications that the risk sentiment is returning in full force to the asset markets. Ahead of us is the U.S. jobs data which is expected to point to a continuing pick up in the world’s biggest economy. China also gave markets a boost as official data showed February exports grew 21.8 percent versus a year ago, more than doubling expectations. European shares have also rebounded strongly after last week’s aftermath of Italian elections and U.S. spending Cuts.
It appears that the stock market is in a wild risk-on mood and the negativity from the Italian elections was shrugged off pretty quickly as the Fed has made it clear that its policy will remain accommodative for the foreseeable future. If we get a get a good set of payrolls numbers, that will further fuel the sentiment. Investors have been returning to stocks and other riskier assets over the last eight months as slowly improving world growth has been bolstered by the European Central Bank’s pledge last August to prevent a break-up of the euro. Today’s U.S. payrolls report, due at 1330 GMT is expected to show U.S. employers added 160,000 jobs last month, picking up slightly from January’s 157,000 count. The report is key to gauging the Federal Reserve’s policy course and following the central bank’s promise that as long as inflation doesn’t pose a threat it will keep U.S. interest rates near-zero until unemployment falls to 6.5 percent.
Looking at the chart the Dow Jones Industrial Average has been on a tear. Strong support on the daily chart is around post Italian elections low at 13784. With the index trading at 14328 as of writing we are several hundred points away with no sign of the bulls giving up their tight grip on the market.

Disclaimer: The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.

A Brief Look At Google 08/03/2013

As we near the on of the trading week, we present to our fellow Forex investors a view on the share price movements of Google. The company announced it is to cut further 1,200 jobs at Motorola Mobility which constitutes 10 percent of its workforce, as the smartphone maker tries to return to profitability. These lay-offs top up the 4,000 jobs cut at Motorola Mobility in August as Google plans to make more smartphones and fewer simple handsets. As Google bought the money-losing cellphone maker for $12.5 billion last year, its largest acquisition ever, its Motorola Mobility’s armory of patents to fend off legal attacks on its Android mobile platform and expand beyond its software business. However the acquisition raised concerns on Wall Street that Google was entering a business with much lower profit margins and bigger competition.
The company announced recently that it began testing a same-day delivery service with retailers in recent weeks, which represents the latest move into Amazon.com Inc’s e-commerce turf by the world’s largest Internet search company. Google Shopping Express helps local retail stores sell products online and have the items delivered to shoppers the same day. The company arranges for third parties, such as couriers, to pick the products up from local stores and deliver the items to shoppers.
Google Shopping Express is the latest sign that the company is embarking on an expansion from its online search roots into e-commerce. The move also suggests that Google may be constructing an online marketplace that connects merchants and consumers, a business model that has made Amazon and eBay Inc successful in the United States. Whilst in the past, consumers would search for an item on
Google.com, an Amazon sponsored link would pop up, hence the shopper would click through, Google would get paid for the ad and Amazon got the sale. Today Google needs a new strategy, because consumers are cutting out Google and going straight to Amazon for their product. So the company is looking for new ways to make money.
These days prices for Forex on Google are on a roll, making it the $800 gorilla in the room. Its shares hit an all-time closing high of $838.50 on Tuesday and some securities analysts are already forecasting the search company could soon be a $1,000 stock. Its surge to new highs has come as its Android software dominates the mobile phone market and it continues to lead in mobile advertising. Google has been on a steep rise since late last year, hitting new highs multiple times, and is up 16.1 percent since the start of the year. That makes it the highest-priced stock in the S&P 500 by more than $100 and puts it within striking distance of the median analyst price target of $851 a share, according to Reuters data. The stock is up 721 percent since its first started trading at $100 in 2004.
Looking at the charts, we are observing on the daily a nice breakout to the upside from 774. Should the price start to pullback this is the first level to consider as a support. On the upside the chart is blank as these are all time highs in the price, so closest resistance is Tuesday high around $840.

Disclaimer: The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.

A Brief Overview of Renault 07/03/2013

The value of Forex on France` s second largest automaker-Renault gained almost 3.4% during yesterday` s trading sessions. A key event related to the company is the fact that local labor unions announced their support for the forthcoming job cuts amounting to 7500 at the company. According to French law, companies are allowed to undertake job cuts only in case they gain the support of at least 30% of their staff. The unions` approval allows Renault to reduce its workforce by 17% and simultaneously increase the working hours. The company`s estimations reveal that the cuts could potentially save 500mln euro annually. The value of Forex on Renault has increased 26% this year, valuing the company at 15.2bln euro. Other data from the company` s statements reveal that global deliveries have fallen 6.3% to 2.55mln vehicles last year. Numbers for the European market show a decline of 19% in local sales. Recently it was announced that Daimler` s Mercedes Benz is looking to build it’s A and B class models at a Renault` s plant. The graph clearly indicates the relative increase in the value of Forex on Renault` s shares which started at the middle of March. Although the Relative Strength Index reads in the overbought zone, Forex investors could potentially benefit from a medium to long term continuation of the negative trend. The steep increase coincides with the indication of the 50 and 200 Days Moving Averages, further strengthening investors` bullish expectations. The weak resistance level is set at the psychological level of 53 euro per share. An eventual breach of that level would signal a short to medium term bullish prevail. On the other side the weak support level is set at the multiple bottoms at 47.50. An eventual break of the weak support could potentially cause the value of Forex on the shares of the company to aim at the levels around 45. The Bollinger Bands have remained relative intact, signaling the lack a significant intraday volatility of Forex trading.

Disclaimer: The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument. 

A Brief Overview of Microsoft 07/03/2013

The value of Forex on the shares of the world` s largest software manufacturing company-Microsoft declined by 0.92% this morning after the announcement that the company will be fined $723mln by the EU regulators. The software giant has breached a voluntary agreement, stating that it will provide users of Windows with the possibility to choose web-browsers from a list which includes rival platforms. Microsoft has not managed to keep the terms of the agreement and the company has deprived 15mln users of the opportunity to pick alternatives to Internet Explorer. The current fine represents the next-in-line controversy between the EU and the US company. Previously Microsoft was fined a record 1.6bln euros for failing to provide rival companies with information at market fair prices and for tying its Media Player to Windows hence again depriving users from the possibility to individually choose the program used to watch media. Under European regulations, a company could be fined an amount representing 10% of fiscal revenue for the preceding year. Steve Ballmer, Microsoft CEO, got deprived of half of his yearly bonus in part because of the company` s failure to introduce Web Browser choice option. The graph clearly presents the recent fluctuations in the value of Forex on the shares of Microsoft. The short term weak support level is set at 27.78 and an eventual break of that level would signal a forthcoming continuation of the negative impulse. On the other hand the short term resistance level is set at 28.53, which is the top from this week` s trading. In case the value of Microsoft breaks above this level Forex investors could potentially benefit from an upward trend aimed at the psychological level of 30. The short term trend coincides with the intersections of the 50 and 200 Days Moving Averages. The positive and negative breaches of the Bollinger Bands suggest a greater trading volume which has ultimately led the value of the stock to decline.

Disclaimer: The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument. 

A Brief Look At Apple 04/03/2013

In the first analysis of this week we bring to the attention of Forex traders a recap of recent developments at Apple. The company had a major setback in its ongoing patents battle with Samsung Electronics on Friday, as a federal judge slashed a $1.05 billion jury award by more than 40 percent and did set a new trial to determine potential damages caused by patent infringement. Last year in what was the biggest and highest-profile of a number of legal trials around the world, a jury awarded the massive sum to the American company. It centered on the use and alleged abuse of patents in the highly competitive mobile market. The iPhone maker convinced the jury that the Korean company, which managed to overtake Apple as the global smartphone leader, infringed on its iPhone and iPad patents. Samsung said in a statement: “We are pleased that the court decided to strike $450,514,650 from the jury’s award, Samsung intends to seek further review as to the remaining award.” Apple declined to comment. Judge Koh said the jury had mistakenly calculated a big chunk of the damages and that a new trial was needed to determine the actual, final dollar amount. This could end up less than or more than the original $450.5 million set by the jury. The judge rejected Apple’s motion for an increase in the jury’s damages award, ordered a new trial on damages for the 14 devices, which include the Galaxy SII. The jury’s award to Apple for 14 other separate products, totaling almost $599 million, was maintained. The decision was taken amidst an impermissible legal theory on which the jury based its award. As a consequence Forex traders witnessed shares of the company closing down 2.5 percent at $430.47 on Nasdaq. Whilst CEO Tim Cook won reelection to Apple’s Board of Directors by a 99.1 percent vote and the company is enjoying record profitability the share price is not performing very well. Rumors are circulating that Apple is working on a new project — a smart watch. Cook acknowledges disappointing share prices amid lawsuit. Many investors are worried that future Apple products won’t be as big hits as the iPhone and iPad; others are angry that Apple is sitting on $137B USD in cash and securities, yet is failing to grow share buyback and dividends at an equivalent pace. Speaking at the annual shareholder meeting, Mr. Cook tried to counter his critics, arguing he was as mad as the next guy about low share prices. A patent application was filed by Apple that indicates the company is most likely working on a wrist wearable device, it will work much like a slap bracelet. The patent application, discovered about a week ago, was for a bi-stable spring with flexible display. Apple filed for it in August 2011. According to the patent application, the bi-stable spring wristband would be made out of thin steel and wrapped in fabric covering, then heat-sealed. The display would be located on one side of the bracelet and the logic board and battery would be placed on the other side. Another idea shows that display mounted right to the bracelet and framed by a thicker fabric. Forex traders could take long term positions basing their belief on whether this potential product will succeed or fail. Looking at the chart, we are fixing Forex investors’ attention on the weekly graphs. Previous upside breakout level is very close at 427, from Q4 2011. Traders should pay close attention on price action around this level to be able to predict future price movements. If investors prove to be confident enough in the future of Apple’s product line we could see rather significant upside, however if this level is broken on a sustained basis we expect a test of the psychological barrier around 400.

Disclaimer: The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.