Forecast for a week January 10-14:
The American stock index of high-tech companies last week showed a strong drop in the new five days I expect the continuation of the downward trend. The Fed of the United States discusses not only the increase in interest rates, which can occur already at a meeting of March 16, but also a reduction in the balance, which can begin in the second half of the year. If you turn to the story, the IT companies have always fallen on the increase in interest Balance rates and reduction. In many high-tech companies, a strong bubble inflated in the last two years. In part, it is already sitting, since falling on a number of papers began in October last year, but most of the shares traded at 5% of the historical maximum and this is clearly not enough to form a good correction.
Trading Recommendation: SELL 15998/16210 and Take Profit 15450.
Canadian Barrick Gold Gold Mountain This week can get under the wave Sales Against the background of a decrease in yellow metal quotes. For gold, this year does not promise anything good. First, during the periods of tightening the monetary policy of the Fed of the United States, the precious metal demonstrates weakness. Fed after two months will completely stop QE and immediately can increase the interest rate. Secondly, the world’s largest gold miners this year expect prices for the price of $ 1500 per ounce, which, in their opinion, is a fair level. The cost of mining at the top ten of the world’s largest companies is About $ 1000 per ounce and historically gold traded 1.5 times higher than the cost. This rule works when there are no force majeures and cataclysms in the world. Now we have this situation. Of course, there is a risk of strengthening a COVID pandemic, but somehow global politicians do not want to introduce nationwide locarks and are limited to verbal interventions.
Trading Recommendation: SELL 18.13 / 18.50 and Take Profit 17.51.
The largest IT-company Eastern Europe last Two months demonstrates a strong downward trend and technical correction has been abandoned in the papers. Yandex shares fell by a third of the historic maximum and this fall was crossed for a long time, because in the papers, the bubble was clearly inflated. Over the past two years, the company’s revenue increased by 58.5%, and from January 2020 to November 2021, capitalization increased by 98.3 %. Paper will be ruling with a leading pace, investors were very optimistic. Now everything is the opposite – investors are pessimistic to look at the company and sell it stock. What has changed? Nothing! Companies also work, all of its business directions demonstrate sales growth. As a result, the paper is already looking overlap, because at a rate of income growth at the level of 58.5% of the promotion should cost about $ 69. Investors from one extreme (all super) fall into another extreme (everything is terrible). So it was always and now nothing new happens.
Trading Recommendation: Buy 54.15 / 51.00, Take Profit 56.75.