WTI Crude Oil Cut Back Gains: Will The Slide Continue?

Titan FX

Commodity

Summary:

WTI Crude Oil price started a fresh decline from the $78.80 resistance.

Key Highlights

WTI Crude Oil price started a fresh decline from the $78.80 resistance.

A connecting bearish trend line is forming with resistance at $72.80 on the 4-hour chart.

Gold could aim for more gains above the $2,670 level.

Bitcoin could accelerate higher if it settles above $66,500 and $67,000.

WTI Crude Oil Price Technical Analysis

WTI Crude Oil price rally stalled near the $78.80 resistance zone. The price started a fresh decline and traded below the $75.00 level.

Looking at the 4-hour chart of XTI/USD, the price settled below the $73.20 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). The bears were able to push the price below the 61.8% Fib retracement level of the upward move from the $66.94 swing low to the $78.78 high.

The bulls are now trying to protect the $69.75 support. It is close to the 76.4% Fib retracement level of the upward move from the $66.94 swing low to the $78.78 high.

On the downside, the first major support sits near the $68.50 zone. A daily close below $68.50 could open the doors for a larger decline. The next major support is $65.50. Any more losses might send oil prices toward $60.00 in the coming days.

On the upside, the price might face resistance near the $72.2 level. The next major resistance is near the $72.80 zone. There is also a connecting bearish trend line forming with resistance at $72.80 on the same chart, above which the price may perhaps accelerate higher.

In the stated case, it could even visit the $76.00 resistance. Any more gains might call for a test of the $78.80 resistance zone in the near term.

Looking at Gold, the price is still showing a lot of positive signs and might aim for more upsides above the $2,670 level.

Economic Releases to Watch Today

US Import Price Index for Sep 2024 (MoM) – Forecast -0.3%, versus -0.3% previous.

US Export Price Index for Sep 2024 (MoM) – Forecast -0.4%, versus -0.7% previous.

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SAXO

Economic

Global Market Quick Take: Asia – October 16, 2024_1

Macro:

Canada's annual inflation rate dropped to 1.6% in September from 2% in August, below the 1.9% forecast. This marks the second consecutive month below the Bank of Canada's 2% target, increasing the likelihood of further rate cuts. The decline was driven by a sharp drop in gasoline prices (-10.7%) and deflation in transportation (-1.5%). Rent growth slowed (8.2%), easing shelter inflation (5%), while food inflation edged up to 2.8%. The trimmed-mean core rate remained at 2.4%. Monthly consumer prices fell by 0.4%.

Euro Area industrial production rose by 1.8% mom in August, the highest since February 2023, recovering from a 0.5% decline in July and exceeding the 1.7% market expectation. Energy, capital goods, and durable consumer goods saw output rebounds, while intermediate goods fell at a slower rate and non-durable consumer goods continued to grow. Germany led with a 3.3% increase, followed by France (1.4%) and Italy (0.1%), while Spain saw a slight decline of 0.4%. Annually, industrial output edged up 0.1% after a 2.1% drop in July.

UK regular pay, excluding bonuses, rose by 4.9% yoy to GBP 648/week in the three months to August 2024, the lowest since June 2022 and in line with market estimates. This follows a 5.1% increase in the previous period. Wage growth slowed in both the private (4.8%) and public sectors (5.2%). Manufacturing saw the highest wage growth at 6%, while finance and business services had the lowest at 4.4%. Adjusted for inflation, real wage growth fell to 1.4% from 1.9%.

Macro events: UK CPI, US Export & Import prices, Canada Housing Starts, Italy CPI

Earnings: Morgan Stanley, Abbott, Prologis, Kinder Morgan, PPG Industries, CSX Corporation, U.S. Bancorp, Discover Financial Services, Equifax

Equities: Wall Street saw a significant decline on Tuesday, largely due to weak earnings from ASML, which spurred a broad selloff in semiconductor stocks, and a sharp drop in oil prices that weighed on energy stocks. The S&P 500 dropped by 0.7%, the Nasdaq 100 fell by 1.2%, and the Dow declined by 324 points. ASML's shares plunged 16.5% after the company lowered its outlook, impacting other chipmakers such as Nvidia (-4.5%), Broadcom (-3.5%), AMD (-5.2%), and Intel (-3.3%). Energy stocks were also hit hard as Exxon Mobil (-3%) and Chevron (-2.7%) slipped following a sharp decline in oil prices. Additionally, UnitedHealth's shares tumbled 8.2% after it issued a weaker earnings forecast. On the other hand, Bank of America gained 0.5% due to stronger than expected third-quarter profits and revenue. Apple rose 1.1%, reaching a record intraday high of $237.49, as reports indicated robust demand for its previous models, boosted by the launch of the iPhone 16.

Fixed income: Treasuries ended with lower yields, led by long-end tenors dropping nearly 10 basis points. The decline was driven by gains in Canadian bonds due to benign inflation data. Block trades in Ultra Bond futures also contributed. The rally tightened the 2s10s spread by over 6 basis points and the 5s30s spread by about 5 basis points. The 10-year yield fell by 7 basis points to 4.03%, while Canada’s 10-year yield decreased by 9 basis points. Canadian bonds rallied on softer-than-expected September CPI data, with short-term interest-rate contracts pricing in around 44 basis points of easing by the Bank of Canada on October 23, up from 37 basis points on Monday. New Zealand bonds also gained after Q3 data showed easing inflationary pressures, with the yield on New Zealand’s 2-year note falling by 5 basis points to 3.87%.

Commodities: Gold prices rose to $2,662 and silver prices increased to $31.50, supported by declining Treasury yields as investors awaited key U.S. economic data for insights into the Federal Reserve's policy direction. The appeal of non-yielding assets like gold was bolstered by a drop in 10-year Treasury yields, which followed weak manufacturing data from New York. Meanwhile, WTI crude oil futures fell 4.4% to $70.6, and Brent crude oil futures decreased 4.1% to $74.2. This decline came after reports suggested that Israel might avoid targeting Iran’s oil infrastructure, easing fears of a significant supply disruption in the region. Israel indicated it may heed U.S. warnings and focus on military rather than energy targets in Iran, although tensions remain elevated.

FX: A Bloomberg index tracking the dollar climbed to session highs as Donald Trump defended his plans to significantly raise tariffs on foreign imports, citing trade with Mexico, Europe, and China. The Mexican peso dropped to session lows, with USDMXN rising 1.4% to 19.65. USDCAD reached a session high of 1.3839 after Canada’s CPI data came in below expectations, but then reversed nearly all its gains, ending a nine-day winning streak. GBPUSD edged up 0.1% to 1.3068 following data showing UK wages grew at the slowest rate in over two years during the summer. New Zealand’s dollar fell to a two-month low against the greenback after Q3 inflation data missed the median estimate in a Bloomberg survey. AUDUSD’s short-term implied volatility increased as traders positioned ahead of Thursday’s Australian employment data release.

To stay updated on all economic events of today, please check out our Economic calendar

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FxPro

Cryptocurrency

Market Picture

The cryptocurrency market rose 1% in 24 hours to $2.28 trillion. The market cooled off somewhat during the day, moving away from local highs above $2.30 trillion, which were the highest in more than two weeks. Sentiment jumped sharply to ‘greed’, reaching the 65 level, the highest since late July.

The price of Bitcoin traded above $66.5K for a while on Tuesday, matching the high of 30 July. This is a very nominal break above the previous high and an attempt to consolidate above the resistance of the descending channel. An important driver is the continued optimism in the US equity markets. Barring any sudden bouts of profit-taking, Bitcoin could consolidate the breakout from the multi-month downtrend. The potential first target of the new bull rally looks to be the area of historical highs as it approaches $74K, with a more distant target of $80K by the end of the year.

News Background

According to CoinShares, global crypto fund investments increased by $407 million last week, following outflows of $147 million the week before. Bitcoin investments increased by $419 million, Solana investments increased by $0.6 million, and Ethereum investments decreased by $10 million.

According to experts, BTC’s growth is being fuelled by expectations of new stimulus measures in China. Over the weekend, Chinese Finance Minister Lan Fo’an said that the country will soon introduce a package of additional fiscal measures to support economic development.

Searches for Bitcoin on Google fell to an annual low. Searches for altcoins show a similar dynamic. At the same time, user interest in meme coins remains relatively stable. The segment is recovering despite the massive failure of new coins and the disappointment of some traders.

The UAE Central Bank has approved the launch of a dirham-based stablecoin, the AED stablecoin. This coin is leading the race to become the first issuer of a regulated stablecoin.

Risk Warnings and Disclaimers

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Glendon

Economic

Oriental Rise Holdings Ltd., based in Ningde, China, is set to make its debut on U.S. markets with an Initial Public Offering (IPO) aiming to raise $12 million. This offering is significant for the company as it seeks to capitalize on growth opportunities in the manufacturing sector, primarily focusing on specialized metal components for the automotive and heavy equipment industries. By entering the public market, Oriental Rise aims to enhance its financial standing and invest in its operational capabilities.

IPO Pricing and Details

The company has announced the pricing of its IPO at $4 per share, offering 3 million shares to investors. This pricing gives the company a market valuation of $12 million upon the completion of the offering. The shares are set to be traded on the NASDAQ under the ticker symbol "ORIS." The IPO is structured as a micro-IPO, typically attracting smaller-scale investors, including those looking for early-stage growth potential. Investment banks specializing in emerging growth companies are spearheading the offering, indicating a robust backing for Oriental Rise as it enters this new phase of growth [4].

Business Background

Oriental Rise Holdings operates within the specialized manufacturing sector, producing high-quality metal components. The company primarily caters to the automotive and heavy equipment markets, where demand for innovative manufacturing solutions continues to rise. With a strong focus on efficiency and technological advancements, Oriental Rise is well-positioned to leverage the growth trends in the Chinese industrial landscape. The IPO funds will enable the company to invest in modernizing its facilities, thus improving its production capabilities and expanding its market reach.

FastBull Insights

FastBull analysts perceive the Oriental Rise Holdings IPO as a pivotal opportunity within the burgeoning Asian manufacturing sector. They emphasize that while the company has strong domestic growth prospects, its ability to scale operations internationally will be crucial for long-term success. FastBull advises potential investors to consider the inherent risks associated with micro-IPOs, which can include limited liquidity and heightened volatility. Investors are encouraged to weigh the potential for substantial returns against these risks, particularly as Oriental Rise plans to expand its footprint beyond China.

Use of Funds

The capital raised through the IPO will primarily be allocated towards the acquisition of new plants and advanced equipment. This strategy signals the company’s commitment to modernizing its manufacturing processes and increasing production capacity. A portion of the funds will also be directed towards general corporate purposes, which may include research and development (R&D) initiatives and marketing strategies aimed at international markets. This comprehensive investment plan indicates a strong commitment to enhancing operational efficiency and competitiveness in a rapidly evolving industry.

Market Trends and Growth Potential

The manufacturing sector in China has been on a growth trajectory, supported by government initiatives aimed at enhancing industrial output and innovation. As the global economy continues to recover from disruptions caused by the pandemic, demand for manufacturing services is expected to rise. Companies like Oriental Rise Holdings, with a strong focus on technological advancements and operational efficiency, are well-positioned to capitalize on this upward trend.

Moreover, the automotive and heavy equipment industries are experiencing significant transformations with the advent of electric vehicles (EVs) and smart manufacturing technologies. As these industries evolve, manufacturers that can adapt quickly will likely outperform their competitors. Oriental Rise’s commitment to investing in new technologies and expanding its product offerings positions it favorably in this changing landscape.

Final Thoughts

The Oriental Rise Holdings Ltd. IPO offers a compelling investment opportunity for those seeking exposure to China’s dynamic manufacturing sector. With plans for modernization and international expansion, the company presents a potentially lucrative growth trajectory. However, investors should remain aware of the inherent risks associated with micro-IPOs, including volatility and liquidity concerns. Conducting thorough due diligence and evaluating the company’s long-term strategies will be essential for making informed investment decisions.

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Owen Li

Economic

The World Bank faces a “challenging” task of raising a record amount of new money to help the most impoverished nations, according to a top official from the development lender.

Akihiko Nishio, vice-president of development finance, said a strong US dollar is one key factor, as are the competing funding demands on donors, including aid to support Ukraine, refugees and those impacted by higher food prices.

“We have a good chance of getting there, but it’s challenging,” Nishio said in an interview. “Given the steep appreciation of the US dollar, almost all donor currencies have depreciated,” he said, adding that some European countries will need to increase contributions by around 20% just to maintain inflation-adjusted donation levels.

World Bank president Ajay Banga last year set a goal of raising a record-breaking amount of donations for the International Development Association, the bank unit that makes low-interest loans and grants to the roughly 75 poorest countries.

The last high of US$93 billion (RM400.79 billion) was raised in the most recent donor round, which ended in 2021. Nishio said the IDA would need to mobilise at least US$105 billion just to maintain the size of replenishment in real-dollar terms.

Banga will likely make an appeal to donors, including top shareholder US, during the bank’s annual meetings next week in Washington. Final donation figures will be announced at an event in Seoul in early December.

The Washington-based lender highlighted the need for the funds in a report released Sunday that showed the poorest economies — those with annual per capita incomes of less than US$1,145 — are worse off today than on the eve of the Covid-19 pandemic.

As well, the world’s 26 poorest economies are “deeper in debt than at any time since 2006,” the fund said in the report.

US Treasury Undersecretary Jay Shambaugh said in a speech last Friday that low-income countries are spending about US$60 billion annually to service debt, up from an average of US$20 billion between 2010 and 2020.

Nishio said in the interview that he’s seeking to shore up support from nations in the Gulf Cooperation Council, which includes Saudi Arabia and the United Arab Emirates.

“Some countries are very generous donors, but we would like to see all GCC countries being generous donors,” he said, declining to name specific nations.

Nishio also said that Latin American countries Brazil, Colombia and Chile should be more involved as donors. He added that Brazil is “seriously considering” coming back as an IDA donor since its last pledge almost a decade ago.

Source: The edge markets

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Glendon

Economic

Synergy CHC Corp. is a Canadian-based company focused on developing and commercializing innovative health and wellness products derived from natural ingredients. Founded in 2012, Synergy aims to address the growing demand for natural health solutions amidst rising consumer awareness regarding synthetic chemicals in healthcare. The company operates in various segments, including nutraceuticals, over-the-counter (OTC) products, and wellness supplements, positioning itself as a leader in the natural health market.

Recent Developments

In late 2023, Synergy CHC Corp. filed for an Initial Public Offering (IPO) on the Canadian Securities Exchange (CSE), seeking to raise approximately $9 million to accelerate its growth trajectory. The company plans to use the proceeds from the IPO for product development, marketing initiatives, and enhancing its distribution network. This IPO is particularly significant as it represents a strategic move to expand Synergy’s market reach and tap into the burgeoning demand for natural healthcare solutions.

Product Portfolio

Synergy CHC’s product portfolio is designed to cater to a wide range of health concerns. The company prides itself on formulating products that meet stringent quality standards while harnessing the benefits of natural ingredients. Key offerings include:

Nutraceuticals: Synergy’s nutraceuticals are formulated to support overall health, targeting specific needs such as immune support, digestive health, and cognitive function.

OTC Products: The company’s OTC product line includes remedies for common ailments, such as pain relief, cold and flu symptoms, and allergy relief, all developed with a focus on natural formulations.

Wellness Supplements: Synergy offers a variety of wellness supplements that promote holistic health, including vitamins, minerals, and herbal products, catering to the growing consumer trend towards preventive health measures.

Market Trends and Opportunities

The global natural health market is experiencing significant growth, driven by a shift in consumer preferences towards organic and natural products. According to recent market research, the global nutraceutical market is expected to reach USD 710.18 billion by 2027, growing at a compound annual growth rate (CAGR) of 8.9%. This trend presents an enormous opportunity for Synergy CHC Corp. as it expands its product offerings and distribution capabilities.

Increased Consumer Awareness: With growing awareness of health and wellness, consumers are increasingly seeking products that promote natural healing and wellness, creating a favorable environment for Synergy’s offerings.

Regulatory Support: Governments worldwide are implementing supportive regulations for natural health products, facilitating easier market entry for companies like Synergy.

E-commerce Growth: The rise of e-commerce platforms has revolutionized product distribution, allowing Synergy to reach a broader customer base and enhance sales channels. The convenience of online shopping has become paramount, especially in the post-pandemic landscape.

FastBull Insights

FastBull analysts have identified Synergy CHC Corp. as a compelling investment opportunity within the natural health sector. The company’s strong emphasis on quality, innovation, and sustainability aligns well with current market trends. Key insights from FastBull include:

Strong Market Position: With a robust product portfolio and a growing market demand for natural health solutions, Synergy is well-positioned to capture market share and drive revenue growth.

Investment Potential: The upcoming IPO is expected to attract interest from investors looking for exposure to the booming natural health sector. The funds raised will enable the company to invest in research and development, enhancing its competitive advantage.

Positive Industry Trends: The overall positive trajectory of the natural health industry, coupled with increasing consumer preference for natural products, positions Synergy favorably for future growth.

Competitive Landscape

Synergy CHC operates in a competitive landscape characterized by several established players and emerging startups in the natural health space. Key competitors include major brands that have already made significant inroads into the market. However, Synergy differentiates itself through its commitment to quality, innovative product development, and consumer education. The company's strong focus on research and development ensures that its offerings remain at the forefront of the natural health industry, enabling it to adapt to evolving consumer preferences.

Conclusion

As Synergy CHC Corp. prepares for its IPO, it stands on the brink of significant growth in the thriving natural health market. With its innovative product portfolio and strategic vision, the company is well-positioned to meet the rising demand for natural healthcare solutions. Investors looking to capitalize on this trend should keep a close eye on Synergy CHC Corp. as it embarks on this exciting journey toward transforming the health and wellness landscape.

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Glendon

Economic

Aduro Clean Technologies Inc. is a Canadian clean tech company revolutionizing the recycling and waste management industries. Founded in Ontario, Aduro specializes in converting waste plastics and renewable oils into high-value chemicals, aiming to tackle the pressing global challenge of plastic waste. The company has developed proprietary technology that not only mitigates environmental impact but also creates valuable products, thereby enhancing the circular economy. By focusing on sustainability and innovation, Aduro is positioning itself as a leader in the clean technology space.

Upcoming Uplisting Details

Aduro Clean Technologies has filed for an uplisting to the NYSE American, intending to raise approximately $5.08 million through the sale of about 1.1 million shares priced between $4.25 and $5.00 each. This uplisting marks a significant milestone for the company, as it will enhance its visibility in the financial markets and provide the capital needed for further expansion and the development of its proprietary technologies. This funding is essential for scaling operations, investing in research and development, and increasing production capacity to meet growing demand.

Innovative Technology and Market Potential

Aduro's patented technology is designed to convert plastic waste into valuable chemicals such as benzene, toluene, and xylene (BTX), which are critical feedstocks for various industries, including petrochemicals, solvents, and plastics manufacturing. This innovative process not only addresses the environmental crisis posed by plastic waste but also creates a sustainable source of raw materials for the chemical industry.

Proprietary Processes: The company employs a unique hydrochemical technology that allows for the efficient breakdown of waste plastics at lower temperatures compared to traditional methods, minimizing energy consumption and costs.

Market Demand: The global market for recycled plastics is expanding rapidly, driven by increasing environmental awareness and regulatory pressures for sustainable practices. With major corporations committing to sustainability goals, the demand for recycled materials is expected to surge, positioning Aduro favorably within this growth trend.

Competitive Advantage: Aduro’s ability to transform low-value waste into high-value chemicals provides a competitive advantage in the recycling market. The potential for high-margin products from waste streams that would otherwise end up in landfills significantly enhances Aduro's business model.

FastBull Insights

According to FastBull analysts, Aduro Clean Technologies represents a significant opportunity for investors looking to capitalize on the burgeoning clean tech sector. The company’s strategic focus on innovation and sustainability aligns with current market trends that prioritize environmental responsibility. FastBull highlights several key factors for potential investors:

Growth Potential: As global awareness of plastic waste issues continues to rise, companies like Aduro, which are committed to innovative recycling technologies, are likely to experience substantial growth.

Investment Readiness: The upcoming uplisting is expected to attract new investors and strategic partnerships, further enhancing the company's market position and growth trajectory.

Positive Market Trends: With governmental and societal shifts toward sustainable practices, the clean tech market is on a strong upward trend, making Aduro a timely investment opportunity.

Market Trends and Future Outlook

The global clean tech market is projected to grow rapidly, driven by increasing environmental awareness and governmental policies supporting sustainable practices. Key trends include:

Regulatory Changes: Many governments are implementing stricter regulations regarding plastic use and waste management, which could drive demand for recycling technologies.

Corporate Responsibility: Corporations across various sectors are adopting sustainability goals, pushing for the use of recycled materials and clean technologies in their supply chains.

Technological Advancements: Innovations in recycling technology are advancing quickly, creating new opportunities for companies like Aduro that can leverage these advancements to improve efficiency and output.

Conclusion

Aduro Clean Technologies is making significant strides in addressing the critical issue of plastic waste through innovative solutions. With its upcoming uplisting and focus on developing cutting-edge technology, the company is well-positioned for future growth. Investors interested in the clean tech sector should consider Aduro as a promising opportunity for capitalizing on sustainability trends in the market. The company’s ability to transform waste into valuable resources reflects a growing recognition of the importance of sustainable practices, aligning with global efforts to combat climate change.

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