Welcome to our weekly newsletter where we provide an overview of the main US and UK indices, a specifically selected outperforming asset with deep analysis. Finally, an analysis of an asset in our portfolio, including a discussion on the returns the asset generates for our Phoenix members.
Let’s get into this week’s newsletter!
US & UK INDICES OVERVIEW
This week the US indices again declined, their worst week in over a month resulting in a snap in the bullish momentum of January. On the monthly time frame, the S&P 500 has declined by 2.5% in February but remains up for the year by 3.0%. On the weekly time frame, price has declined to close below the 50 SMA. Whilst on the daily time frame, price closed the week below the 20 SMA, and remains below the 50 SMA. On Friday, a positive sign for the bulls was the bounce off the 200 SMA. Next week will be crucial; the bulls will be trying to price back above the weekly 50 SMA, whilst the bears will be trying to push price down below the daily 200 SMA and confirm this week’s close below the weekly 50 SMA.
The performance of the Nasdaq 100 is largely mirroring the S&P 500. On the weekly time frame, this week price weakened to also close below the 50 SMA, and Friday’s low was also at the daily 200 SMA. The Dow Jones Industrial index closed the week at an important level – just above the weekly 50 SMA.
This week the FTSE 100, the UK index, took a break from its bullish run with a decline of 1.6%. The strength in January remains in February with a gain to date of 1.4%. On the daily time frame, price has weakened to close below the 20 SMA; the bulls will be watching for a bounce off this moving average and a continuation of the trend.
OUTPERFORMING ASSET FOR THE WATCHLIST
FTI Consulting - FCN
FTI Consulting is a business advisory firm headquartered in Washington, D.C., United States. FTI is one of the largest financial consulting firms in the world and consistently ranks as one of the top global management consulting firms. The company specialises in the fields of corporate finance and restructuring, economic consulting, forensic and litigation consulting, strategic communications and technology.
FCN is a stock that was first floated in 1996. The stock has displayed periods of solid trends, such as in 2007, 2018 and 2019. Between July and December 2022 price was in a period of consolidation. This month price has been bullish with a gain to date of 15.2%.
On the weekly time frame, the Sublime trend filter is green. Price has bounced off 50 SMA, however, remains below the all-time high at $190, set in July 2022. On the daily time frame below, price is trading above the 20, 50 and 200 SMA, and the Sublime trend filter is also green. However, the 20 and 50 SMAs remain below the 200 SMA. The next area of resistance is the all-time high along with the $200 round number. We will update our Phoenix community should opportunities arise in a bullish stock with a history of strong trends.
OUTPERFORMING ASSET FOR THE WATCHLIST
USD/JPY is the symbol used to denote the currency exchange rate for the U.S. dollar and Japanese yen. USD/JPY is one of the most liquid and traded currency pairs in the world.
USDJPY is an asset with a history of trends. The most recent trend commenced in October 2021, where price commenced a bullish trend peaking in October 2022 after gaining 33.7%. Between October 2022 and January price retreated from an all-time high of 152.0 to 127.2. In February price regained strength, with a gain to date of 4.9%.
On the weekly time frame, price has closed above the 200 SMA. Whilst on the daily time frame, price is trading above the 20 and 50 SMA, but remains below the 200 SMA. This week the 20 SMA crossed above the 50 SMA, a near-term sign of strength.
Looking ahead, price, currently at 136.5, is immediately faced with the daily 200 SMA at 137.0. A close above the daily 200 SMA, followed by a continuation pattern could offer our Phoenix community members an opportunity in an asset with a long history of trends.
Last week’s weakness continued into this week. Whilst we remain vigilant, we continue to share ideas with our Phoenix community for opportunities for excellent returns.
Keep it simple. Keep it Sublime.
The ST Team
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