Market Review 21-09

Market Review 21-09

Guggenheim says buy Netflix shares due to its India growth opportunity

By Tae Kim

Guggenheim Securities said Netflix shares will go higher due to its rising international streaming business.

The firm raised its price target to $420 from $360 for Netflix shares, saying the company’s locally produced content offerings will spur demand in India. Guggenheim Securities also reiterated its buy rating for the company.

“We believe that Netflix subscriber penetration will significantly exceed what is implied in the company’s current valuation,” Michael Morris said in a note to clients Wednesday. “We expect the 3Q launch of original local-market content in India, upgrades to user experience and consumer products development to support share appreciation.”

https://www.cnbc.com/2018/09/19/netflix-shares-rise-after-guggenheim-ups-its-price-target.html

 

Citigroup Seen Dropping 10% On Lower Revenue Forecasts

By Michael J. Kramer

Citigroup Inc.’s (C) stock has fallen about 11% off its highs this year amid growing concerns about the outlook for America’s biggest banks. That may be just the beginning. According to a technical analysis, the bank’s shares may plunge an additional 10% from their current price of around $73. Such a drop would push down the stock 18% off its 2018 intraday high in January.

A key force weighing on Citigroup’s stock is its deteriorating revenue outlook. Analysts are reducing their revenue forecasts for the balance of 2018 and beyond, despite improving earnings.

The technical chart for Citigroup has been trending lower since peaking in January. Additionally, the stock has been unable to rise above roughly $73 since the beginning of May, a level of technical resistance. The stock has failed to rise above $73 three times, creating a bearish technical reversal pattern known as a triple top. That suggests that Citigroup’s stock will fall in the coming weeks.

https://www.investopedia.com/news/citigroup-seen-dropping-10-lower-revenue-forecasts/

 

Crude Oil Price Analysis: Resistance Breached, Bulls Take Charge

By Justin McQueen

Oil bulls continue to take charge with Brent making another push towards $80/bbl. DoE crude report showed a 5th consecutive weekly drawdown in crude stocks, which in turn added to the upward momentum. Alongside this, the recent reports that Saudi Arabia would be comfortable with Brent above $80 has seen oil bulls use that as their first target, while similar comments from the Iranian oil minister has also buoyed sentiment and could possibly see oil continue to push for better levels.

Despite the step up in trade war tensions between the US and China with the Trump administration announcing that they will tariff $200bln worth of Chinese goods at 10%, the looming sanctions on Iranian exports has been the biggest driver for oil prices

Following DoE crude report, WTI crude made a break above the psychological $70 level before breaching the descending trendline from the YTD high. This break confirms that the momentum is to the upside with room for a revisit to the YTD high ($74.06)

https://www.dailyfx.com/forex/market_alert/2018/09/20/Crude-Oil-Price-Analysis-Resistance-Breached-Bulls-Take-Charge.html

 

Sugar, Coffee Seen Joining Cocoa In Q4 Rally As Prices, Demand Turn

By Investing.Com

Sugar and arabica coffee seem ready to share the bullish spotlight with cocoa. This potential fourth quarter rally would come as exhaustion in their price downside occurs just before year-end festivities across the globe raise demand for such soft commodities.

Cocoa has been the number 1 performing commodity of 2018, having gained 16 percent year-to-date.

In the case of sugar, the front-month October contract in New York gained more than 9 percent after hitting 10-year lows, below 10 cents a pound a month ago, helped by charts indicating extreme oversold conditions.

Investing.com’s technical outlook has mixed calls on October sugar, with the strongest Level 3 Fibonacci resistance indicated at 10.92—meaning the contract could rise another one to two cents.

Shawn Hackett of Hackett Financial Advisors in Boca Raton, Florida, said dramatic reductions in EU sugar beet production due to drought had also sparked the rebound in the sweetener’s prices from August lows. Reduced acres and large use of sugar for ethanol-making provided additional support, he said.

But Hackett also noted the strong rally of the past month was also a red flag “as normally, prices retest lows after an initial major low.” He urged sugar bulls to be cautious of a possible setback in coming weeks.

For coffee, Cordier says he expects the March arabica contract to hit $1.15 a lb by the year end, versus Wednesday’s settlement of $1.0005.

Investing.com’s daily technical outlook, however, calls for a “Strong Sell” on the front-month December arabica contract, which last traded at $0.967 a lb.

https://www.investing.com/analysis/sugar-coffee-seen-joining-cocoa-in-q4-rally-as-prices-demand-turn-200344720

 

Gold Prices Trade Higher as Dollar Softens on Easing Trade Concerns

By Investing.Com

Reports of the tariffs imposed by the U.S. and China on each other’s goods being set at lower levels than expected were cited as headwind for the dollar prices, which is widely seen as safe-haven assets.

The dollar was also under pressure after a report said that the U.S. and Canada are unlikely to reach an agreement on NAFTA this week.

Looking ahead, markets would be paying close attention to next week’s Federal Reserve meeting. The U.S. central bank is widely expected to hike rates and discuss paths for future rate hikes.

Higher rates dent demand for non-interest yielding gold and in turn boost the dollar in which it is priced.

https://www.investing.com/news/commodities-news/gold-prices-trade-higher-as-dollar-softens-on-easing-trade-concerns-1616983

 

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