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USA 100

Market Opportunities - 27/07/2020

27 July, 2020

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

USA 100 uptrend opportunity based On 1.00 Lot Calculation:

  • USA100 fell last week more than 5% due to the new political crisis between the US and China, but it managed to preserve a strong upward trend with increasing daily volatility making good trade opportunities in the following days.
  • Futures tracking the Nasdaq indexes rose early Monday as investors braced for a big week of corporate earnings among top and most valued Nasdaq companies and ahead of expected new coronavirus stimulus from the US lawmakers. Market expects a new stimulus package worth much more than one trillion US dollars by the end of this week and these expectations may push stock markets up again.
  • Technically, according to the Daily chart, US100 is in a strong upward movement since the middle of February. All major Technical indicators also support further upward movements of USA100. Despite last week's selloff on the stock market, the Daily Relative Strength Index hit but didn't breach below level 50 keeping a strong positive outlook with a great chance to reach a level of 70 which can be considered as the first resistance level. Looking at Moving Averages, the current price is well above 20-day, 50-day and 200-day Moving Average meaning that the current price has a strong support for further increase. If the price manages to stay above positive trend line and if the Daily Relative Strength Index manages to stay above 50, the USA100 may reach Resistance 1 level of 10890.0

USA 100, July 27, 2020
Current Price: 10,543.0

USA100

Weekly

Trend direction

UP

Resistance 3

11,584.0

Resistance 2

11,237.0

Resistance 1

10,890.0

Support 1

10,196.0

Support 2

9,849.0

Support 3

9,502.0

Example of calculation base on Weekly trend direction for 1.00 Lot*

USA100

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

10,410.00

6,940.00

3,470.00

-3,470.00

-6,940.00

-10,410.00

Profit or loss in €*

8,892.88

5,928.58

2,964.29

-2,964.29

-5,928.58

-8,892.88

Profit or loss in £**

8,104.95

5,403.30

2,701.65

-2,701.65

-5,403.30

-8,104.95

Profit or loss in C$

14,127.41

9,418.27

4,709.14

-4,709.14

-9,418.27

-14,127.41

* 1.00 lot is equivalent of 10 units
** Calculations for exchange rate used as of 14:20 (GMT+1) 27/07/2020
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Senior Account Manager for more details

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