SP500 forecast for the week January 20-24
The US stock market rose by 3% over the past two weeks. An uptrend is called as the signing of the first phase of the trade agreement Mezhuyev Washington and Beijing, as well as low interest rates the Federal Reserve. At the beginning of the week I expect a technical correction to the psychological level of 3330 points, as the index of "fear" the VIX is below 12.5 points, which usually indicates a technical correction, if the stock market is showing continued growth. This week, many well-known American Corporation will publish its financial statements for the fourth quarter, and investors are waiting for surprises, since the Fed last year cut interest rates three times than that provided good support for business. Therefore, I recommend using the correction to the psychological level of 3300 points to open Buy positions,
SP500 recommendation: Buy 3310/3285 and take profit 3345.
BRENT Forecast January 20-24
OPEC oil cartel and the International Energy Agency together have raised their forecasts for growth in demand for hydrocarbons in 2020. At this step of spodviglo signing of a trade agreement between the US and China. That trade war was the main threat to the oil market in 2019. As Washington and Beijing were able to reach a consensus, but now oil companies expect growth in the world economy and the fascination of oil consumption, especially in Asia. The main emphasis is on China and India. In my opinion, technical market correction is over and now it is possible to expect continuation of the uptrend.
BRENT recommendation: Buy 64.44 / 63.05 and take profit 66.14.
XAGUSD Forecast January 20-24
After the signing of the US Trade Agreement and China's industrial metals market has begun a good upward trend. Against this background, I recommend buying silver as the metal, though belongs to the precious metals, but it is widely used in the industry and has a strong correlation with copper. Completion of the trade war of the two largest economies in the world have a positive impact on the commodity market.
XAGUSD recommendation: Buy 17.98 / 17.56 and take profit 18.25
Company analyst FreshForex