July 2017 Market Wrap Up | Japan’s Geopolitical Uncertainty, The Weak US Dollar, RBA Rates & More

Dear traders,

We hope that it’s been a rewarding month for you as we close the books on July. Here is a Market Wrap Up to summarise Revelation Trading’s biggest talking points from the past month.

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Shinzo Abe’s declining popularity spells trouble for his economic policies. (Reuters)

1. Japan’s Geopolitical Uncertainty vs The Weak US Dollar

Japanese politics and abenomics have been constantly iterated issues throughout July as geopolitical uncertainty continues to rise. Though one might expect that the yen will weaken, one must also consider that the dollar hasn’t been doing so well either (see next point). Given the unfortunate situation in Japan, the yen may now bear the brunt of this political tension. Only time will tell if abenomics will continue as highlighted in Revelation Trading’s 24th July Market Update. View the full chart and possible scenarios on TradingView here.

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Scaramucci exits from the White House after just 10 days on staff. (Reuters)

2. US Dollar Weakens as Euro, Aussie Dollar & Pound Rises

Over the last few trading days, traders have bore witness to a stronger euro, aussie dollar and pound as the USD trades weaker across the board. This chaos is attributed to the lack of direction from the White house as a result of Scaramucci’s removal, Fed Fischer’s dovish comments and a stronger than expected Eurozone CPI.

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Getty Images

3. Reserve Bank of Australia Holds on to Rates

As mentioned early on in the month, Revelation Trading expects that the soft Australian CPI and a dovish Lowe speech should result in the RBA holding pat on their rates for a while longer. 0.8150 is a key level to watch on the weekly chart.

4. Currency Pair to Look Out For – EURUSD

Lastly, here’s a tip moving forward in the month of August. EURUSD is also approaching an area of resistance between 1.1810 to 1.19. Two probable scenarios may take place at this juncture: A drop may occur with a test of 1.155 and 1.47, or alternatively surpassing 1.19 may revisit long forgotten levels at 1.2430. Stay with us in the days to come for more updates on this and more.

Regards,
The Revelation Trading Team

Pharmaceutical Stocks Analysis – GSK, Pfizer, Abbott Labs

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GLAXOSMITHKLINE – Full chart here.

Since our last bullish outlook on the pharmaceutical sector, Revelation Trading feels that GSK is one stock to look out for. Though it has caused a slight dent, the failure of Congress to repeal and replace Obamacare has not caused the pharmaceutical stocks on our radar to tumble. In fact, they have held their well defined ranges. That to us, is strength.

Also, with reference to our TradingView post on 24th June, the NBI has also been maintaining its upward momentum. Thus, Revelation Trading concludes that apart from the media sensationalising the failure to replace Obamacare, there is no change to our analysis on the sector.

With regards to GSK , we are looking for actionable ideas above 43 with an initial stop loss established at 40, targeting 45.50 and above.

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PFIZER – Full chart here.

Pfizer, like GSK is reporting on 1st August for their earnings. Another exciting stock caught in a range. Since this stock has yet to trend but is still caught in the consolidation phase, actionable regions are maintained at those price balloons on the chart. The argument for bullish price action is the same as GSK.

Lastly, with regard to Abbott Labs, we are looking for further upside with the invalidation of the double top at 51.73 to confirm Revelation Trading’s bullish bias. Near term support is at 46.33.

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ABBOTT LABS. Full chart here.

“Second-quarter of 2017 adjusted earnings from continuing operations is 62 cents per share, 3.3% higher than the Zacks Consensus Estimate and up 12.7% year over year. This adjusted quarterly number also remained ahead of the company’s guidance range of 59 cents to 61 cents…”

Credits to Nasdaq. Read more about it here.

Make sure to follow Revelation Trading on Trading View to get updates on these pharmaceutical stocks, alongside other FX tips. Happy weekend!

Regards,
The Revelation Trading Team

Market Update | 18 July 2017 | How To be A Relevant Trader, AUD/NZD Updates

In today’s market update, let’s talk about the negative repercussions of trading solely with technical facts and how this might lead us to read the market wrongly. We also bring you updates on the situation in Australia and New Zealand.

Given yesterday’s lacklustre CPI readings from New Zealand, it is unlikely that the RBNZ will follow in the footsteps of the BOC by hiking their interest rates. Based on this assumption, one would fade any rally of NZDUSD to 0.74, targeting 0.7240 and 0.7090.

However, if you are a purely technical trader, your perspective might be decisively different. After all, you’re not wrong to say that the dollar index is still bearish and that the NZDUSD is still consolidating between 0.7370 and 0.7260. The list can go on and on. Yet, in order to be a relevant trader, one must be able to see the big picture and form his or her own hypothesis while trading. Thus, we urge traders not to be narrow-sighted and to use technical facts alongside other tools to help make trading decisions.

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Lastly, Australia and New Zealand are both in need of buoyant housing growth to stimulate their economy. The positive growth surprises in China and the recent bullish iron ore prices (which have caused the AUDUSD to appreciate further) makes it even harder for Australasia’s economy to be propped up. Thus, the RT Team reckons that the market is going to see AUDUSD trade sideways between 0.7710 and 0.7835 for a while before a clearer direction is formed.

Regards,
The RT Team

New Beginnings – Passion, Profit, Peace.

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It has been a while since we launched Revelation Trading and we are so happy to welcome you into this community! Thank you very much for following our content for the past six weeks. The few interactions we’ve had so far have been very encouraging and with that, a proper introduction is due – so here it is.

First things first – are we a professional trading company? Are we the kind to guarantee you great returns if you follow our trading tips? Not really. I don’t think Singapore, or the world at large, needs another currency or stock channel that shares market updates and stock tips. If Revelation Trading wants to imitate that, I can assure you that there are many better companies out there with top-tier market professionals and algorithms that can guarantee you success in your trading career. They definitely have more manpower, experience and systems in place to get you there. So I guess the question is this: What separates Revelation Trading from the rest of them?

Take a look at our values:

PASSION – We are passionate about the market and promise to create excellent trading content for you.

PROFIT – We give you practical and easy-to-execute trade ideas to help maximise your profitability.

PEACE – We journey with each individual in their search for self-discovery and help them embrace their own trading personality.

“Passion” and “Profit” are quite self-explanatory, but what about “Peace”? If you find it hard to relate this value to trading, fret not – you’re not the first one to say so. How is peace even related to trading? I find that this concept is best encapsulated in this bible verse:

Let the peace of Christ rule in your hearts, since as members of one body you were called to peace. And be thankful.”

Colossians 3:15

Peace is something that’s hard to come by when you’re a trader. I understand the anxiety, fear and doubts that can crowd traders’ minds. However, I’d like to think of RT as a tool that can help you to grow holistically and not only in trading. That’s why we believe in curating stories and revelations such as this. In the end, the goal is to have PEACE with both your trades and yourself as a person as you take this journey of self-discovery. And how better to do it in a community – members of one body – that learns together?

The RT team believes that each individual’s personality traits are what make them a different trader from the next person. The word “Revelation” is unique to each individual and means a brand new beginning that comes with new perspectives, insights and ways of trading to be learnt and harnessed. This is why our values are three-fold – it’s all-encompassing of the trading experience.

To put it simply, we see trading like how other people might see art, music, writing, etc. Through this journey, there are many stories and lessons to learn, and it is our privilege to help you embrace the unique trader that you are.

Valerie Nicole Tan
Founder of Revelation Trading

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Market Update | 13 July 2017 | Yellen’s Interest Rate Hike Announcement

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What an exciting trading day it was for traders yesterday as they digested Yellen’s newly-announced projections on her interest rate hiking intentions. Moving forward, she is opting for a gradual rate hike over the next few years. As such, we saw the US dollar being sold off as the market heaved a sigh of relief. The S&P and Nasdaq continued to make new highs.

As such, at least from a technical perspective, sideway trading is to be expected for USDJPY between 113/115.1 while EURUSD needs to close above 1.1470 to validate upward momentum to 1.16 and 1.18.

Also another market moving news was the loonie which raised its interest rate, choosing to overlook the lackluster inflation results as temporal. Thus, USDCAD strengthened against the USD to 1.2680.

Revelation Trading urges readers to refrain from picking lows or using the same assumptions like oil price to trade the loonie i.e. Take note of Canada’s significant shift in its monetary policies.

Regards,
The Revelation Trading Team