Ethereum Technical Analysis: ETH/USD must break $140 for any hope of a recovery

Ethereum price is trading in the red by some 0.35% in the session on Friday. ETH/USD price action is running at four consecutive days in the green, …

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

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XLM Price Prediction

Yesterday, Stellar price started dealing at $0.0459 and then escalated to $0.0460 by … The currency fell immediately and touched $0.0462 by 1.02%.
  • Stellar price is spotted trading around $0.046
  • The intraday trading looks good with the XLM coin

Stellar price is trading with moderate upside momentum, as seen from the intraday chart, which has spiked hope among the traders. The coin price has been spotted improving the momentum from the last couple of days. The improvement in the coin might last for some time. The future of the Stellar Lumens is speculated to be bright.

XLM Price Prediction

Stellar Lumens NewsStellar Lumens News

Yesterday, Stellar price started dealing at $0.0459 and then escalated to $0.0460 by a marginal hike of 0.62%. Then, it slipped to $0.0458 by 0.52% and again exhibited a slight surge and reached to $0.0461. At this level, the XLM price couldn’t hold itself and fell to $0.0459. Further, there was a tremendous uptrend marked that took the price to $0.0465 by 1.35%. The price slipped to $0.0461 by 0.76%. Stellar price escalated once again, and this time jumped to $0.0469 by 1.58%. The currency fell immediately and touched $0.0462 by 1.02%. The price improved and reached to $0.0465. The closing hour brought the XLM price to $0.0462 by 1.10%. Today, Stellar opened the day with escalation. The counters changed from $0.0462 to $0.0464. The uptrend continued and went up to $0.0468.

Stellar might take the price up to its immediate resistance at $0.0475 in the coming hours. However, if the momentum reverses, the price might drop and find the nearest support at $0.0444. The currency holds a lot of expectations in the future.

Resistance Level Price Support Level Price
R1 $0.047526 S1 $0.044491
R2 $0.048837 S2 $0.042767
R3 $0.050561 S3 $0.041456

The traders who are planning to invest in Stellar Lumens are recommended to opt for short-term investment due to its hasty movement.

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2020 predictions for gold, bitcoin and other precious metals

With equities still on a bull run like no other, it would be reasonable to say that commodities might not be top of the buy list for private investors.

With equities still on a bull run like no other, it would be reasonable to say that commodities might not be top of the buy list for private investors.

But if you are looking for a slug of diversification to add to your portfolio there are three commodities that might attract the interest of savvy investors.

Top of the list is gold, which has had a fabulous run in 2019, returning 21%. That progress may not continue at such an elevated rate, but expect further appreciation.

Less keenly followed but definitely one to watch is precious metal palladium – which is now more expensive than gold.

And then there’s the wildcard play: rare earth minerals. In fact, the ores of the metals collectively known as rare earths aren’t actually that rare; rather, the deposits with high enough concentrations of the 17 rare earth elements to make it economic to mine are few. Recent moves in the US to secure a home-based supply chain prompt interest here.

We will come back to our three picks later. But first, what of other commodities such as oil and agriculture?

To begin with, some general considerations. Demand and supply for the stock of the commodity in question is the key consideration when trying to judge where prices are headed. The US currency is another moving part to bear in mind. We may be at peak strong dollar. Because many commodities are priced in dollars, any weakening in the world’s dominant reserve currency tends to raise commodity prices, most of which are priced in dollars.

Golden returns in 2019, but is it too late to profit?

Energy prices on the back-burner

To make a call on what 2020 has in store for the oil price requires an assessment of the general direction of the global economy and how that impacts both industry and consumers as well as extraneous factors such as how the weather influences demand.

However, the latter is more a concern for traders as opposed to investors taking a longer view, so let’s concentrate on the other factors regulating supply and demand.

Although the non-OPEC US is the world’s largest producer of crude, it is the cartel-like OPEC that potentially has greater sway over prices in its attempts to co-ordinate cuts in production or to opens the taps.

On that front it has not had much success in flow regulation. According to the Bloomberg Commodity Outlook published in November, prices are expected to continue to trade in a range between $50 and $60, with bulls pressuring prices lower at the upper range of that band where price resistance forms.

Although stock markets could be set to power higher going into 2020 following the calming of nerves around the US-China trade dispute and the return of political stability to the UK, that doesn’t mean the global economy will deliver the sort of industrial production surge that could drive crude prices higher – or those of other cyclical commodities such as copper, stuck in a downtrend since May 2018.

JPMorgan Asset Management’s Year Ahead report thinks industrial metals will “stay neutral given sub-trend global growth”, citing China’s property sector as a key demand driver but where the government is “reluctant is ease current real estate restrictions”.

The effects of backwardation, where the spot price is higher than the forward price, should also bear down on the oil price, further stunting any bullish rallies.

JPMorgan underlines the possibility that “geopolitical tensions in the Middle East (Iran and Saudi Arabia, Syria) could result in episodic oil price surges in 2020”, but concludes that “softer demand growth and sufficient spare capacity globally should curb a sustained rise in oil prices”.

US production of natural gas continues to expand, so don’t expect any substantial price appreciation next year, regardless of the possibility of some improvement in global demand, especially from Asian emerging markets.

A key industrial input is copper and as such it is the commodity deemed most susceptible to the ebbs and flows of industrial activity.

Again, where the price goes is predicated on the direction of the global economy. Even though the trade war truce is bullish for copper and the US economy is still seeing healthy payroll growth, the situation in China remains far from encouraging, with GDP barely above the 6% required for the economy to maintain forward momentum – assuming you hold store in the accuracy of the official data.

Potash fertiliser demand set to rise

A quick word on agriculture. Prices have been trading sideways for key soft commodities that feed the world, such as wheat and corn. Cotton too hasn’t done much but that could change with better news on the US-China trade war front if the truce turns into lasting peace.

The largest agriculture ETF, Invesco DB Agriculture (DBA), is down 7.3% year-to-date and -8.8% over five years, having suffered falling returns since 2011.

A better way of playing agriculture could be the VanEck Vectors/Agribusiness ETF (MOO). It invests in areas such as fertiliser, animal health, seeds, irrigation, farm equipment and machinery.

It is trading up 19% as the year draws to a close. It is well-diversified but nevertheless has substantial exposure to fertiliser producers, which could see it benefit from trade peace.

“For 2020, we expect a full rebound in US acres planted and the recent recovery in palm oil prices to remain in place. Both factors should bode well for potash demand in 2020,” says data provider Morningstar.

Three commodity plays: gold, palladium and rare earths

The bright spot for commodities continues to be in precious metals.

Although gold has come off the boil recently, currently trading at $1,513 (on 30 December) after hitting a six-year high at $1,560 in early September, its safe-haven properties will likely still be in demand in 2020. The yellow metal’s prospects are helped by a continuing low-yield environment and the ever-present possibility of a resurgence in unconventional monetary policy intervention by central bankers and the continuing geopolitical risks emanating from the Middle East, Hong Kong and the likes of North Korea, to name but three hotspots.

And although political risk has lessened dramatically in the UK with the large Conservative majority in parliament, the same cannot be said for the US, which enters the presidential election year with its head of state facing an impeachment trial in the Senate.

Swiss investment banking giant UBS in its Year Ahead 2020 report is backing gold over cyclical commodities, echoing the reasons stated above: “Muted economic growth and now lower interest rates reduce the opportunity cost of holding gold, which does not offer a yield. Political uncertainty could send safe-haven flows into gold. And since gold is priced in USD, a weaker dollar would in turn push gold prices higher.”

The palladium market brings to mind the old investment adage “don’t fight the trend”. Since 2016, the price of the metal has been trending relentlessly higher, currently priced at $2,000 per troy ounce, making it more expensive than gold.

Two variables are at work here – highly constrained supply and rising demand caused by the ongoing tightening of regulations to reduce emissions from carbon-burning vehicles.

Tai Wong, head of base and precious metals derivatives trading at BMO Capital Markets, emphasises the fact that the normal scenario for commodities, where rising prices leads to an increase in production that pressures prices lower, does not apply in this market. “In most cases, the cure for high prices is high prices, but not for palladium,” he explains.

“There doesn’t seem to be any new, ready supply at any reasonable price. So, it could continue to move higher from here, though perhaps with more volatility,” adds Wong.

Palladium is used in catalytic converters and regulations on emissions are set to tighten further, with the replacement of carbon-burning vehicles by electric variants many years away.

WisdomTree Physical Palladium (PHPD) exchange traded product will cost investors 0.49% to hold and provides direct exposure to the metal, with HSBC bank the custodian of the palladium.

Our third commodity pick, Rare earths, are being used by China as a bargaining chip with the US in their trade dispute. China accounts for 80% of supply to the US and 70% of global production. The minerals are used to make key components in electronics for both civilian and military end users. There are 17 rare elements.

The US Army announced it plans to fund the processing of rare earths, an industry that was originally founded decades ago in the US.

The VanEck Vectors Rare Earth/Strategic Metals ETF (REMX) has been struggling this year but one way to leverage the US Army decision is by seeking those US companies lining up for a piece of the action.

One for the risk junkies – bitcoin

There is arguably a new entrant in the commodities world that warrants a mention – bitcoin.

Although touted as a digital currency, it is not used as such, or not very much. Instead, some see it either as a form of digital gold because of its supply being limited to 21 million (currently 18 million have been mined) or as a hedge against unconventional monetary policies.

Jan Van Eck, chairman and chief executive of ETF provider VanEck, leans towards viewing bitcoin as a hedge against central bankers. “It’s not exactly like gold [but] it’s a form of private money that will act as a hedge against central bank inflation,” he said in a recent Financial Times interview.

The reward that miners receive for doing the bookkeeping on the bitcoin blockchain will be halved in May 2020, a mechanism that kicks in every four years. Miners currently receive 12.5 bitcoins for each block they verify. This is the way that new bitcoins come into circulation.

Constraining supply in this way should lead to price appreciation. However, bitcoin is dominated by speculation so there is no certainty here, to put it mildly.

Add to those technical considerations working in bitcoin’s favour is the expectation of further geopolitical uncertainty ahead and the continuing absence of a full-blown recovery in the global economy.

But that won’t happen before the momentum from the stalled Facebook Libra crypto launch fully dissipates, with the price at the time of writing just above $7,000. Bitcoin’s Libra-induced high in 2019 was $13,700.

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Bitcoin Options Trading Poses New Risks to the Market

The Bitcoin (BTC) market will have another source of risk – trading in options. The intention of derivative instruments is to hedge the risk for owners, …
Bitcoin Options Trading Poses New RiskBitcoin

Avatar

Christine Vasileva| Dec 30, 2019 | 06:11


The Bitcoin (BTC) market will have another source of risk – trading in options. The intention of derivative instruments is to hedge the risk for owners, or potential buyers. But trading option positions holds an additional risk of its own.


Bitcoin Options Exposure Expected to Grow Next Year

Options exposure is growing, as the markets already offer several tools on various types of exchanges. The mainstream Bakkt exchange has been offering Bitcoin (BTC) options since December 9, and the CME will start the product on January 13.

However, exposure is also growing on the dy/dx DeFi exchange, and other crypto-to-crypto markets. The growth of options trading may turn into a source of losses, especially given the volatile nature of BTC. OKEx also launched its options trading for BTC this December 27, linking it to one of the most active futures markets. The Deribit exchange is also a source of European-style options, and is one of the leading markets.

$9.5MM in options exposure. 2020 is going to be a hell of a year.

Come gamble on options, guaranteed to lose your money but your affiliate fees go to charity:https://t.co/nCea2QzPwZpic.twitter.com/fa4Mla4D3G

— light (@LightCrypto) December 30, 2019

Options should, in general, offer strategies to offset various price move risks. There are multiple complex options strategies used for stock price moves. The risk with bitcoin comes from the much smaller market.

Over the past years, futures trading saw traders liquidated after sharp BTC moves. Options may open similar risks, as some strategies may prove unsuitable for bitcoin price moves.

As with futures, there are the possibilities to trade options positions, without buying the actual underlying asset. The inherent risk in positions trading may create more complexity, especially with fast and unexpected BTC price moves.

Riskier Options Offered by Small Startups

The other risk will stem from smaller startups offering their own options types, where trading may be even riskier. The trending of options trading on larger platforms is also rekindling the interest in bitcoin binary options, perhaps one of the riskiest bets of all.

In this case, the options are a bet on which direction the bitcoin price would take. Making the wrong bet could lead to immediate losses, and in the case of BTC, price moves often happen within hours. Options also mean no chance of holding actual bitcoin, an asset that at least cannot be confiscated or liquidated.

There is no way to predict how fair or active the options market would be. Even large exchanges are currently building up their usage.

⬇️Global Listed BTC Option Open Interest more than halved after the Dec19 expiry.

📈How long will it take before reaching the same levels?

❓More importantly, what will be the split between venues at the same time next year, with Bakkt, CME and OKEx ready to challenge Deribit? pic.twitter.com/bnduBiPjYa

— skew (@skewdotcom) December 29, 2019

Other predictions are more pessimistic, seeing options trading as a tool to further tame the bitcoin price.

Bitcoin will never go to 1 Million (or even 100K for that matter),….why? Because of BAKKT Cash Settle Futures option on Bitcoin. If you don’t believe that, just look at what has happened to the Precious Metals Markets with CASH Settled Options. No True Price Discovery.

— Cryptonaut (@Crypton09915373) December 30, 2019

While BTC could grow with no limits on the spot market, driven by bots and whales, options markets gather a new type of trader, interested in positions and not the long-term future of BTC.

What do you think about BTC options trading? Share your thoughts in the comments section below!


Images via Shutterstock, Twitter @LightCrypto @skewdotcom @Crypton09915373

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Litecoin Price Analysis: LTC/USD switched to the recovery mode

Litecoin (LTC), the sixth-largest digital asset with the current market capitalization of $2.8 billion, has gained 1.3% in recent 24 hours. At the time of …

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

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