NZD/USD Prices May Fall as ECB Sinks Euro
By Daniel Dubrovsky
New Zealand Dollar Fundamental Forecast: Bearish
The pro-risk New Zealand Dollar headed for another week of declines, depreciating against its major counterparts as trade war fears weighed on global benchmark stocks such as the S&P 500.
An outcome that results in the Eurosceptic Swedish Democrats gaining in popularity could also potentially reduce urgency for the ECB to raise rates in 2019. The central bank’s next interest rate announcement with updated economic projections is on Thursday. If the Euro falls on a more cautious ECB, then USD could quickly find itself rallying at its expense. This could thus pressure Kiwi Dollar lower.
Threats of trade wars are still prominent and may continue weighing on emerging markets and stocks. At the time of this writing, the hearing period for US tariffs on Chinese goods ended. The Trump administration could very well pursue additional $200b in levies on China. Recently, it was reported that Mr. Trump may target Japan next. Neither scenario bodes well for the sentiment-sensitive New Zealand Dollar.
Netflix shares rebound after RBC raises price target for streaming giant, predicts nearly 30% gain
By Tae Kim
Investors should buy the recent dip in Netflix shares due to its dominant position in the streaming video market, according to RBC Capital Markets.
The firm raised it price target for Netflix shares to $440 from $360, representing 29 percent upside to Wednesday’s close. RBC also reiterated its outperform rating for the stock, citing positive results from the firm’s recent consumer survey.
“We believe these results largely confirm Netflix’s strong Value Prop and Competitive Position,” analyst Mark Mahaney says.
Big Gains For Cocoa After Wild Ride Adds Sweetener For Bulls
At Wednesday’s settlement of $2,311 a tonne, cocoa’s most active December contract on ICE Futures US promised a 22 percent return for anyone who had bought in at the end of 2017 and held since. With investors and tacticians projecting highs in the $2,400-$2,500 range next, the confection-and-beverage material could remain the second best performing commodity through the third quarter.
Although cocoa was technically overbought, there were enough fundamental concerns to convince market bulls to add to positions, said Mooses. “Weather premium may also be added to the equation this time of season. Look for $2,400 to be the next target.”
Why Alibaba’s Stock Faces More Declines Ahead
By Michael J. Kramer
Alibaba Group Holdings Ltd.’s (BABA) stock has been in a terrible downtrend with shares falling by 22% from their mid-June highs. Now shares are facing an even steeper decline of up to another 8% based on technical analysis, from the stock’s current price around $163.50.
That is not all, options traders are also betting that shares of Alibaba fall by the middle of January by about 8% as well.
The bearish sentiment is clear on the technical chart with the stock in a downtrend. Additionally, the stock is falling below technical support around $166.60. That means the stock may drop all the way to $151.50 from its current price.
Facebook is having one of its worst quarters since going public. One trader sees more trouble ahead
By Rebecca Ungarino
Facebook shares have taken a massive hit recently, and one technical analyst is betting on more trouble ahead.
Shares of the social media company fell nearly 3 percent on Thursday, bringing its quarter-to-date losses to a whopping 16 percent; that places Facebook on track for its largest quarterly loss since 2012, when it lost 30 percent, and its second-worst quarter since going public in early 2012.
Todd Gordon, founder of TradingAnalysis.com, sees an opportunity in the sell-off.
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