The G20 summit took place in Bali, Indonesia, on November 2022…
Tesla: two reasons why it dropped
Information is not investment advice
Tesla dropped amid the wider stock sell-off and by that erased all its gains for this year. Why? Actually, there are two reasons. The first is Bitcoin. Tesla has just recently invested $1.5 billion in cryptocurrency and made $1 billion in a month from its investment. However, the current weakness of Bitcoin made some investors go away from Tesla in the near-term. The second reason is Tesla announced it would stop selling its cheapest car: The Model Y. That raised questions over the demand for Tesla cars. Since Ford and General Motors are entering the market of electric vehicles, some investors worry whether Tesla can sustain this competition.
In the short term, Tesla may keep falling. However, in the long term, it should rebound from its losses as the company has a huge army of fans that believe in its further prosperity. The good news for FBS traders is that they can make both buy and sell trades. So a trader doesn’t need to hold already an asset to sell it. Thus, traders have a chance to profit in case of either outcome.
If Tesla drops below the 100-day moving average of $625.00, the way down to the December low of $560.00 will be clear. On the flip side, the move above the 50-day moving average of $780.00 will drive the stock further up to the February high of $880.00.
Don't know how to trade stocks? Here are some simple steps.
- First of all, be sure you’ve downloaded Metatrader 5. FBS allows you to trade stocks only through this software.
- Open the MT5 account in your personal area.
The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?