USA500 (USA500) weekly downtrend opportunity based On 1.00 Lot Calculation:
- DESCRIPTION: The USA500 is a capitalization weighted index of 500 of the largest firms listed on American exchanges. The index is filled with many growth companies that are highly sensitive to rising interest rates.
- INFLATION is still on very high level. July’s CPI printed at 8.5%, Year-over-Year.
- The U.S. Federal Reserve and other central banks around the world fight inflation by raising interest rates. Jerome Powell said on Friday that the central bank was willing to keep raising interest rates even at the risk of an economic slowdown.
- INTEREST RATES ARE GOING UP: Powell's speech during the Jackson Hole symposium made it clear that expectations for any reversal of the Fed's tightening were unlikely. He also warned of the potential economic danger for households and businesses as the central bank continued to aggressively fight inflation.
- FUNDAMENTAL ANALYSIS: This Friday, a nonfarm report will be published. According to the head of the Fed, the decline in the economy cannot be considered a recession if unemployment does not increase and 300-600 thousand new jobs are created every month. If the Nonfarm Payrolls indicator starts to decline and unemployment (which will also be released on Friday) increases, then Powell is unlikely to deny the beginning of a recession. This is a new reason to show a fall in the US stock market.
(USA500), August 31, 2022
Current Price: 4,000.00
USA500 |
Weekly |
Trend direction |
|
4,800.00 |
|
4,450.00 |
|
4,240.00 |
|
3,750.00 |
|
3,450.00 |
|
3,150.00 |
Example of calculation based on weekly trend direction for 1.00 Lot1
Pivot Points |
||||||
Profit or loss in $ |
-8,000.00 |
-4,500.00 |
-2,400.00 |
2,500.00 |
5,500.00 |
8,500.00 |
Profit or loss in €2 |
-8,021.66 |
-4,512.18 |
-2,406.50 |
2,506.77 |
5,514.89 |
8,523.01 |
Profit or loss in £2 |
-6,900.95 |
-3,871.30 |
-2,064.69 |
2,150.72 |
4,731.59 |
7,312.46 |
Profit or loss in C$2 |
-10,491.20 |
-5,901.30 |
-3,147.36 |
3,278.50 |
7,212.70 |
11,146.90 |
- 1.00 lot is equivalent of 10 units
- Calculations for exchange rate used as of 11:55 (GMT+1) 31/08/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client 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 Client Manager for more detail.