Overnight Moves

Today, we looked at 13 charts; below are only a few. Join us in the morning call on Discord to see it all. Let’s have a look at the overnight moves. Yesterday’s market was mostly uneventful, as strikes against Lebanon briefly caused an increase in oil price, but things quickly returned to the status quo when Israel announced that it would engage in talks with Lebanon. Following yesterday’s profit-taking and headlines, we believe today will also be a wait-and-see market driven by headlines, but we expect the conditions to improve in the coming weeks as negotiations between Iran and the U.S. continue.

Software

The software sector was one of the few eventful parts of the market yesterday, as it experienced a drop across the board, reaching new lows, with some cases going down to 2023 levels. We think this is the result of a ratation play by fund managers, as there aren’t any major factors pushing against the softwares. It’s worth noting that while Microsoft (MSFT) did also take a hit, it seems to hover stably around the $370 range, so which could be worth keeping an eye on it.

Oil

The Strait of Hormuz remains closed following airstrikes in Lebanon, and disagreements between the U.S. and Iran. But Israel’s announcement of talks with Hezbollah seems to have stablised the oil price around $91. It’s worth noting that so far, both Iran and the U.S. have stayed in the ongoing negotiations which is mediated by Pakistan and attended by Vice President JD Vance. As a result, we speculate that both sides are interested in ending the war soon. We think oil will continue to hover in place today, but recommend keeping an eye on on the headlines, as it’s possible for oil to jump up with the right catalyst.

The magic happens in our community!

We’re posting on TradingView, we’re posting on our blog… but the real magic happens in our client community where you can get access to our ideas as they develop. So, open your account and join us and start taking advantage of South Africa’s Top Broker for both Active Traders and Traditional Investors. We have a Discord server, with a Daily Morning Call at 08:30 (Monday – Friday), where our Trading Strategist shares market updates and posts information with the Community. If you are not trading with us yet, what’s stopping you?

*Please note that these trade ideas form part of a larger weekly plan and the value of financial products can increase as well as decrease over time, depending on the value of the underlying securities and market conditions. The risk of loss arising from trading in Contracts for Difference can be substantial. You should carefully consider whether such investments are suitable for you in the light of your circumstances and financial resources.