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ADM: Fundamental Analysis +41%With 2024 revenue of $ 85.53 billions, Archer-Daniels-Midland is an american agricultural and animal nutrition provider. EverStock identifies a fundamental revaluation potential of +41 %. Valuation at 16.8 x net earnings : Currently valued at $ 30.23 billions in market capitalization, Archer-Daniels-Midland posted a profit of $ 1.80 billions in its latest fiscal year (2024). Balance sheet and debt : In the company annual report, tangible net asset value stood at $ 15.40 billions, giving a market capitalization / tangible net asset value ratio of 1.96. The gearing ratio is good, at 0.66. (Total financial debt / net tangible assets valuation). Current share price : 62.92 $ Target price : 88.70 $ Upside potential : + 41 % (including dividende income) Dividend : 2.04 $ (0.51 $ per quarter) Yield : 3.24 %
NYSE:ADMLong
by skollkuul
DHI: Fundamental Analysis +45%With 2024 revenue of $ 36.80 billions, D. R. Horton is an american homebuilding company. EverStock identifies a fundamental revaluation potential of + 45 %. Valuation at 10.1 x net earnings : Currently valued at $ 48.26 millions in market capitalization, D. R. Horton posted a profit of $ 4.76 billions in its latest fiscal year (2024). Balance sheet and debt : In the company annual report, tangible net asset value stood at $ 25.15 billions, giving a market capitalization / tangible net asset value ratio of 1.92. The gearing ratio is good, at 0.24. (Total financial debt / net tangible assets valuation). Current share price: 161.87 $ Target price : 235.36 $ Upside potential : + 45 % (including dividende income) Dividend : 1.60 $ (0.40 $ per quarter) Yield : 0.99 %
NYSE:DHILong
by skollkuul
1
SP500 Secondary trend. Part of the channel. Reversal zone. 2025 Logarithm. Time frame 1 month (less is not necessary). The SP500 index primarily reflects the "health" of the American stock market and the economy as a whole. This is reflected in all markets by the domino effect. Now, after a huge takeout and recovery, the price is at the maximums of the local trend that has formed, and this is also the maximum of the index as a whole for its entire 100-year existence (before displaying on the chart). 🔄 Locally, the price has run into the resistance of the median of the ascending channel (green dotted line). Now the resistance level of this zone will be formed. 🟢 A breakout of this zone upwards - an exit above the median, promises strong growth and pumping of the stock market as a whole. 🔴 And the reverse process is not a breakthrough and not a consolidation above this zone - consolidation in the range under resistance and above the dynamic support of the internal channel. An extremely negative case is a decline in the lower zone of the channel. 🧠 The chart as a whole shows the channel range itself. Including on both sides, price slippage zones (low probability), as well as key support / resistance levels of this secondary trend that exist, and those that will be formed in the future, but will be key for the development of the trend. This can be an addition to the analysis and formation of tactics and money management in other markets, including cryptocurrency.
VANTAGE:SP500
by SpartaBTC
Palantir Technologies (PLTR) Shares Plunge Below $150Palantir Technologies (PLTR) Shares Plunge Below $150 Shares of Palantir Technologies (PLTR), a company specialising in big data analytics software, delivered an unpleasant surprise to investors: → just last week, the stock was trading at its all-time high of around $190; → yesterday, the price collapsed below $150. At yesterday’s intraday low, PLTR stock had dropped almost 25% from its record peak. Why Did Palantir Technologies (PLTR) Stock Fall? Bearish sentiment may have been driven by: → capital rotation from risk assets into so-called defensive stocks ahead of the Federal Reserve Chair’s speech at the Jackson Hole Symposium (as we reported yesterday); → growing speculation that a “bubble” is forming in the technology sector, which could burst. According to Investor’s Business Daily, Andrew Left, founder of Citron Research, bet on downside in PLTR, arguing that the stock is severely overvalued following its phenomenal 340% rally in 2024. Technical Analysis of Palantir Technologies (PLTR) Stock In our previous analysis of PLTR’s price action, we: → identified an ascending channel (shown in blue); → suggested that the upcoming earnings release would push the stock towards the upper boundary of this blue channel. Indeed, the strong earnings report on 5 August acted as a catalyst for the surge (breaking through resistance at $160, as indicated by the arrow) towards the channel’s upper boundary. However, the optimism stemming from these fundamentals was swiftly and completely erased – a highly significant bearish signal. That said, the bulls still have valid reasons to remain hopeful, as the price: → staged a false bearish breakout below the key $145 level, which had previously acted as resistance (and has now flipped into support); → closed yesterday’s volatile session above its opening price (forming a dragonfly doji on the daily chart); → thus, the blue channel remains valid, with demand showing signs of aggression. We can assume that the market has undergone a stress test and, after the volatility spike, the price has returned to the prevailing ascending channel, maintaining the uptrend. If so, the bulls will need to prove their resolve by overcoming key resistance levels at $160 and $170 (these mark not only the gap boundaries but also psychological barriers). If successful, PLTR’s price could advance towards the channel’s median line. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
NASDAQ:PLTR
by FXOpen
1
What Are Autoregressive Models in Trading?What Are Autoregressive Models in Trading? Autoregressive (AR) models help traders analyse market movements by identifying statistical relationships in historical price data. These models assume that past values influence current prices, making them useful for spotting trends and price behaviour. This article explores “What is autoregression?”, how AR models function, their role in trading, and how traders apply them to market analysis. What Is an Autoregressive Model? Autoregressive (AR) models are statistical tools that can be used in numerous spheres, including market prices, weather, and traffic conditions. They analyse market movements by using past price data to understand current trends. The autoregressive definition refers to a model where each value in a time series depends on previous values plus an error term. The number of previous values considered is called the “lag order,” denoted as AR(p), where ‘p’ represents the number of lags. In an autoregressive model example, an AR(1) model looks at just the previous value to estimate the current one, while an AR(3) model considers the last three. In trading, the key idea is that if historical prices show a consistent pattern—whether trending or reverting to a mean—an AR model can help identify that structure. This approach differs from other time series models. Moving averages (MA) smooth out fluctuations by averaging past prices, while autoregressive integrated moving averages (ARIMA) combine both approaches and adjust for trends. AR models, however, focus purely on the statistical relationship between past and present values, making them particularly useful in markets where past behaviour has a clear influence on future movements. Traders use an autoregressive process to explore trends, momentum, and potential reversals in markets that exhibit persistent patterns. However, their effectiveness depends on market conditions and the assumption that past relationships remain relevant—something that isn’t always guaranteed, especially in volatile or news-driven environments. How Autoregressive Models Work in Trading Traders use AR models to examine how past prices influence current movements. An autoregressive model trading strategy often involves assessing whether an asset’s price exhibits momentum or mean reversion tendencies. For example, if an AR(1) model shows that today’s price is strongly influenced by yesterday’s price, it may suggest a continuation bias—meaning traders could expect trends to persist in the short term. In contrast, if an AR(2) or AR(3) model highlights a tendency for prices to move back toward an average after a few periods, it could indicate mean reversion. This is particularly relevant in range-bound markets where prices frequently return to support and resistance levels. The number of past values included in an AR model is a key decision. Too few lags might miss relevant patterns, while too many can add unnecessary complexity. Traders typically determine the appropriate lag length by evaluating past data and statistical criteria like the Akaike Information Criterion (AIC). AR models are more popular in markets where historical relationships hold for extended periods. It’s common to use autoregressive models for trading forex, equities, and commodities, especially in detecting short-term trends or cycles. While they aren’t predictive tools, they provide a structured way to analyse price behaviour, offering traders a statistical foundation for evaluating market movements. Stationarity and Its Role in AR Models For an autoregressive time series model to work, the data must be stationary. This means the statistical properties of the time series—such as its mean, variance, and autocorrelation—remain constant over time. If a dataset is non-stationary, meaning its trends, volatility, or relationships shift unpredictably, the AR model's analysis can become unreliable. Why Stationarity Matters The autoregressive model, meaning it assumes a consistent statistical structure, can struggle with shifting market conditions if stationarity is not ensured. If a time series is non-stationary, it might show an upward or downward drift, meaning price relationships aren’t consistent over time. This makes it difficult to analyse patterns. For example, a stock experiencing long-term growth won’t have a stable mean, which can distort AR-based analysis. Testing for Stationarity Traders often check for stationarity using statistical tests like the Augmented Dickey-Fuller (ADF) test. This test helps determine whether a time series has a unit root—a key characteristic of non-stationary data. If the test suggests a unit root is present, traders may need to adjust the data before using an AR model. Transforming Data to Stationarity When data is non-stationary, traders often apply transformations to stabilise it and convert it to an autoregressive model time series. Differencing is a common method, where they subtract the previous value from the current value to remove trends. Log transformations can also reduce the impact of volatility. Once stationarity is achieved, an AR model is believed to be more effective to analyse price movements. Using an Autoregressive Model in Practice Understanding how autoregressive models work is one thing—actually applying them in trading is another. These models are primarily used in quantitative strategies, where traders rely on statistical methods rather than gut feelings or news events. While AR models aren’t a complete trading strategy on their own, they can provide valuable insights when used correctly. Building an AR Model The first step in using an AR model is preparing the data. Traders typically start with a time series dataset—such as daily closing prices—and ensure it is stationary. If the data shows trends or changing volatility, they may apply differencing or log transformations to stabilise it. Once the data is ready, the next step is determining the lag order—how many past values should be included in an AR(p) model. This is done through statistical tests like the Akaike Information Criterion (AIC) or Partial Autocorrelation Function (PACF), which help identify how far back price movements remain relevant. For instance, an AR1 model considers only the previous price point, while an AR3 model incorporates the last three observations. Choosing too few lags might miss important relationships, while too many can overcomplicate the model. After selecting the lag order, traders fit the AR model using statistical software such as Python’s statsmodels or R’s forecast package. The model estimates how past prices influence current ones, producing a set of coefficients that define these relationships. The trader then analyses these results to determine if the model aligns with market behaviour. Applying AR Models to Trading Once built, an AR model provides insights into how past price behaviour influences future movement. For example: - If an AR(1) model shows a strong positive coefficient, it suggests that today’s price is closely linked to yesterday’s, reinforcing a short-term trend. - If an AR(2) or AR(3) model suggests a return toward a long-term mean, it may indicate a market where price cycles are present. Traders use these insights in different ways. Some apply AR models to analyse short-term market momentum, while others use them to examine mean-reverting assets like certain forex pairs or commodities. They can also compare AR-based analysis with other indicators like moving averages or Bollinger Bands to refine their decision-making process. Autoregressive models are also used in machine learning for time series forecasting, helping algorithms detect patterns in sequential data. In trading, autoregressive model machine learning techniques can refine models by dynamically adjusting lag parameters, improving adaptability to changing market conditions and reducing reliance on fixed assumptions. ARIMA: Extending AR Models While AR models work well on stationary data, many financial time series contain trends or seasonality that a basic AR model can’t handle. This is a scenario where Autoregressive Integrated Moving Average (ARIMA) models become useful. ARIMA combines AR components with moving averages (MA) and differencing (I for “integrated”) to account for non-stationary behaviour. For example, if a stock price has an upward drift, an AR model alone won’t be sufficient. An ARIMA model can first remove the trend through differencing, and then apply AR and MA components to analyse underlying patterns. This makes ARIMA more flexible for complex market environments. Challenges and Considerations When Using AR Models Autoregressive models can be useful for analysing price movements, but they come with limitations that traders should consider. Financial markets are complex, and historical price patterns don’t always repeat in the same way. Understanding where AR models fall short might help traders apply them more effectively. Overfitting and Choosing the Right Lag Order One of the biggest challenges in using AR models is selecting the right lag order. Including too many past values can lead to overfitting, where the model becomes overly sensitive to historical fluctuations that may not be relevant going forward. Overfitting can create misleading analysis, making the model seem accurate in hindsight but ineffective in real-time market conditions. Traders typically balance complexity with statistical tests like the Akaike Information Criterion (AIC) to determine an optimal lag length. Market Noise and Unexpected Events AR forecasting assumes that past price relationships remain relatively consistent. However, financial markets are influenced by a wide range of external factors—economic reports, central bank decisions, and geopolitical events—that models based purely on past prices cannot account for. A market that has historically followed a trend can abruptly reverse due to news or institutional flows, reducing the usefulness of AR-based analysis. Data Quality and Stationarity The reliability of an AR model depends on the quality of the data used. Non-stationary data, sudden regime changes, or structural shifts in the market can distort results. Traders often need to check for stationarity and adjust their approach when market conditions change, ensuring that their models remain relevant rather than assuming past relationships always hold. The Bottom Line Autoregressive models offer traders a statistical approach to analysing price movements, helping them identify trends and market behaviour based on historical data. While they are not standalone trading signals, they can be valuable when combined with other analytical tools. FAQ What Is an Autoregressive Model? An autoregressive (AR) model is a type of statistical model that analyses time series data by expressing a variable as a function of its past values. It assumes that past observations influence current values, making it useful for identifying patterns in sequential data. What Is an Autoregressive Model in Finance? In finance, AR models are used to analyse price movements by examining historical data. Traders apply them to identify trends, momentum, or mean-reverting behaviour in assets like stocks, forex, and commodities. AR models help quantify how past price changes relate to current movements. What Is an Autoregressive Model for Stock Analysis? AR models in stock analysis assess price patterns by using historical data to determine potential relationships between past and present values. They can highlight statistical trends but do not account for external market drivers like news or economic events. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
Profit-taking hits NASDAQ100: Uptrend still intact? The NASDAQ100 extended its losing streak as investors keep taking profits in tech stocks Advanced Micro Devices and Broadcom each lost around 1%. Intel slid over 7%. Apple , Amazon , Alphabet , and Tesla also posted losses. Market volume typically falls in late August, which can lead to wilder swings. The index has now broken below 23,600 and is trading near 23,300, marking its steepest pullback since late June. The short-term trend that began in mid-July is still possibly intact, with higher highs and higher lows. However, volume on down days suggests sellers are active, which may reinforce near-term downside pressure.
BLACKBULL:USTEC.F
by BlackBull_Markets
META Platforms Inc. Heist: Breakout Loot vs Pullback Entry🚨META Platforms Inc. Stock Heist Plan🚨 💎Asset: META Platforms Inc. (Swing Trade Robbery) 💎Plan: Bullish Break-In 📈 Breakout Entry: 790.00 (Vault Door Break) 📉 Pullback Entry: 710.00+ (Sweet Spot for the Thieves) 🔑 Any perfect pullback after 710.00, OG thieves may layer orders at chosen levels – stack the loot, DCA style! 🛑 Stop Loss (SL): Thief SL parked @ 675.00 (but remember OG’s—adjust based on your risk appetite & personal robbery strategy). 🎯 Target (Escape Point): 850.00 (Police barricade spotted! Don’t get greedy—take the cash and run before sirens go off 🚔💨). 🕵️‍♂️ Thief Trader Notes: Use layering method (multiple limit orders) for maximum loot collection. Don’t panic if guards (market makers) try to set traps; patience is the true thief’s weapon. Adjust SL to protect your robbery stash. Stay sharp—volatility = more doors to break in! ⚠️ Trading Alert for OG’s: News & earnings reports are like security alarms—avoid entering new trades at that time. Use a trailing SL to lock in profits once you’re in the getaway car 🚗💨. 💥 If you like this META Heist Plan, smash the Boost Button 💥 and join the robbery crew. Together we loot the markets, one breakout at a time! 🤑💰🏆
NASDAQ:METALong
by The-Thief
2
Swing Trading Basic- How to Select a Stock for SwingHow to identify a Swing Trading Set up. Let's take an Example of "Arihant Capital Fin". During that Reversal, price start floating above 20 MA. That's an early sign- Real Time EOD Price is now trending above 20 Day's Average price. It means now price is above monthly Average (22 Trading Days /Month). Additionally, Volume confirmation also suggest same trend direction (During June 2025). Moreover 20 MA stops decline, pauses & starts it's reversal Journey. Exactly from hereon, if Price starts giving VCP or 20 MA Supporting scenario, get ready for a Swing Trade in such Stocks. You'll see in the chart, every dip to 20 MA was bought nicely. This is not a buying/ trading advise. Market Factor, Stock & Sector specifics, needs to be considered for trading. Every stock has it's own soul of price movement. This is a psychological journey than Scanning, indicators & Technical skills. You'll master it if you repeatedly practice min 20 charts a Day for at least 6 months! Wish you Happy Trading & Happy Learning!
NSE:ARIHANTCAPLong
by Saishayu_Option_Scalpers
How Ride the AI Wave in 2025 | Top AI Stocks The AI boom is still making waves on Wall Street Over the past 15 months, investors have injected more than $ 5 billion into tech sector funds. This surge was fueled by three consecutive interest rate cuts by the Federal Reserve in 2024, coupled with Donald Trump's presidential victory, which led investors to pour over $140 billion into the stock market, hoping tax reforms would boost corporate profits. A significant portion of this activity has been driven by the growing interest in artificial intelligence, with AI driven companies leading a remarkable 25% rally in the S&P 500 this year. Nvidia (NVDA), a key player in the AI sector, has soared 149% in the past year, while major tech firms like Microsoft (MSFT) and its collaboration with OpenAI, and Google’s (GOOG) Gemini project, have also contributed to the rise in stock prices. The AI market is expected to expand from approximately $540 billion last year to over $1.8 trillion by 2030, with a projected compound annual growth rate (CAGR) of 20% through 2032. In the final weeks of his presidency, Joe Biden's administration introduced new regulations to block the export of US-made semiconductors to adversarial nations, including Russia and China. This move is part of the ongoing AI arms race, with the US aiming to maintain its lead in manufacturing the chips essential for powering AI technology. AI Stocks: The Only ‘Bubble’ You Want to Be In North America held the largest share of the global AI market in 2023, accounting for nearly 37%. Europe, Asia Pacific (APAC), and Latin America followed with shares of 25.5%, 24%, and 13.6%, respectively. Whoever controls AI holds the power and the same is true in the corporate world. AI related stocks, such as Palantir Technologies (PLTR) and Nvidia, delivered triple digit returns and led the market in 2024. Growing investor interest has also made it easier to trade AI focused exchange-traded funds (ETFs), which offer exposure to broader industry themes rather than individual companies. However, performance can vary. For instance, the Defiance Quantum ETF (QTUM) and the Invesco Semiconductors ETF (PSI) have shown comparable results since 2020, consistently outperforming the broader market. Meanwhile, the iShares Future AI & Tech ETF (ARTY) has underperformed compared to the S&P 500. So, how can you identify the top AI stocks when certain ETFs are lagging? This is where the Quant Rating System comes in. Quant Ratings combine proprietary computer processing technology with "quantamental" analysis, allowing you to filter out the noise and focus on AI stocks with strong fundamentals that are expected to grow earnings at an above average rate. Leading AI Companies Worldwide Major tech giants like Amazon (AMZN), Google, Apple (AAPL), Meta (META), Microsoft (MSFT), and IBM (IBM) have invested billions into AI research to secure a dominant position in this highly profitable space. Whether it's backing high-potential startups like MSFT’s $11 billion stake in OpenAI, or supplying crucial AI hardware such as Nvidia's (NVDA) graphic processing units (GPUs), these companies are striving to stay ahead of competitors. While generative AI tools like ChatGPT are undeniably shaping the global economy, the potential for significant returns from AI stocks is more nuanced. For instance, Palantir Technologies (PLTR) has dropped over 20% from its all-time high in December, receiving a "hold" rating from Seeking Alpha's Quant system and analysts across Wall Street as of January 9, 2025. Even Nvidia, despite a strong performance in 2024, has seen its stock show signs of stagnation. Other AI stocks are showing signs of potential overvaluation. For example, SoundHound AI (SOUN) recently dropped more than 16%, with analysts highlighting concerns over its unsustainable valuation given its weak fundamentals. 2025 Top AI Stocks The hype in Silicon Valley can make it challenging to distinguish between AI stocks with long-term potential and those that are overhyped Our data driven Quant system uses advanced computer processing and proprietary algorithms to analyze thousands of stocks in real time across a range of metrics like value, growth, profitability, EPS revisions, and momentum. To find the top performing AI stocks, I analyzed securities from three leading AI focused ETFs Global X Robotics & Artificial Intelligence ETF (BOTZ), Robo Global Robotics and Automation Index ETF (ROBO), and Global X Artificial Intelligence & Technology ETF (AIQ). From this analysis, I selected six top-performing stocks—three largecap and three small-to-medium-cap (SMID)—which represent the diverse opportunities in the AI space. These stocks, both from tech companies providing AI solutions and non-tech firms utilizing AI to enhance productivity, boast an average levered free cash flow margin of about 18.6% and have returned an average of 60% more than the past 12 months. 1. Twilio Inc Market Capitalization $16.6B Twilio, a cloud communications company, has returned nearly 51% over the past year and ranks second in the Top Internet Services and Infrastructure sector, just behind Kingsoft Cloud Holdings. The company’s growth has been driven by stronger revenues, reduced losses, increased cash flow, and the completion of a high-profile ETF investor Cathie Wood’s stake sale. Twilio’s strong Q3’24 earnings suggest it’s well-positioned to capitalize on the growing AI trend well into 2025, with its stock more than doubling since May. Like many cloud computing companies, Twilio, based in San Francisco, gained prominence during the COVID-19 pandemic but initially struggled with high expenses and slow revenue growth. However, the surge in demand for generative AI, particularly through Twilio's CustomerAI platform which leverages large language models (LLMs) and natural language processing (NLP) to analyze customer data has played a key role in its remarkable recovery. TWLO Revisions, Momentum, and Valuation Over the past 90 days, Twilio has seen a remarkable 23 upward revisions to its earnings per share (EPS) and 27 revisions to its revenue projections from analysts, signaling a strong financial rebound. This turnaround is reflected in its ‘A’ Momentum Score, with six-month and nine-month price performances of 93.5% and 81.3%, respectively—both figures vastly outperforming the sector medians by over 1000%. As a result, Twilio has nearly doubled the performance of the S&P 500 in recent months. Twilio also demonstrates solid growth prospects, with a forward EBITDA growth rate of 50.6% (783% higher than the sector median), year-over-year operating cash flow growth of 520.8% (3,348.45% above the sector median), and an impressive levered free cash flow margin of 107% (603% above the sector median). However, its average forward price-to-earnings (P/E) ratio of 30x indicates that Twilio trades at a premium compared to its peers, nearly 20% higher than the sector median. 2. Celestica Inc Market Capitalization $12B Celestica has seen a remarkable 255% increase in its stock price over the past year, driven by its strategic pivot toward AI infrastructure manufacturing. The company has carved out a niche in producing networking switches for data centers, and its Connectivity & Cloud Solutions segment, which makes up 67% of total revenue, has grown 42% year-over-year as tech companies invest more in AI-powered data centers. Its Q3 '24 results highlighted a 22% increase in revenue to $2.5 billion and record adjusted EPS of $1.04. CLS Valuation, Momentum, and Growth Celestica stands out for its attractive valuation, even with impressive returns in 2024. With a forward price-to-earnings growth (PEG) ratio of 0.87, the stock appears undervalued compared to its peers. It boasts an ‘A+’ Momentum Grade, having received six upward EPS revisions and eight revenue revisions from analysts in the past 90 days. Its Growth Grade has improved significantly, rising from ‘C+’ to ‘B+’ due to forward EPS growth of 49% and year-over-year diluted EPS growth of 88%, both significantly outperforming the sector median. 3. DocuSign Market Capitalization $18.3B DocuSign, known for its electronic signature services, has embraced AI in innovative ways, particularly by adding new AI features to streamline contract agreement processes. These AI-driven tools have helped the company’s stock surge more than 21% following its impressive Q3 '24 earnings, and the growth trajectory is expected to continue in 2025 as DocuSign expands into new markets, both domestically and in Europe. As SA Analyst Noah’s Arc Capital Management notes, DocuSign's AI features have proven invaluable for businesses, simplifying the often complex task of reviewing and managing contracts. DOCU Growth, Valuation, and Profitability DocuSign has demonstrated exceptional growth, including an ‘A+’ EBIT growth rate of 239.21% (10,710% above the sector median) and year-over-year diluted EPS growth of 1,852.2% (24,971% higher than its peers). While its overall ‘C+’ Growth Score is somewhat tempered by a low forward return on equity growth forecast of -29.58%, the company’s valuation looks compelling. Its trailing and forward P/E GAAP ratios of 18.6 and 17.9 are 38.6% and 41.5% lower than the sector medians, suggesting that DocuSign's shares are undervalued. Furthermore, its ‘A+’-Rated PEG ratio of 0.01, a 99% difference from the sector median, points to a strong value proposition for investors. 4. FARO Technologies Market Capitalization $478.2M FARO Technologies, based in Lake Mary, Florida, specializes in 3D measurement technology and has leveraged AI to establish itself as a leader in "smart factories" and "intelligent automation." Its scanning technology has been instrumental in improving productivity and accelerating production timelines. The company has seen nearly 54% growth over the past six months, benefiting from the expanding global 3D scanning market, projected to grow to $11.85 billion by 2032 at a compound annual growth rate (CAGR) of 13.11%. In Q3, FARO reported $0.21 of nonGAAP EPS, marking its sixth consecutive quarter of exceeding expectations. This success is part of the company’s strategic plan, which includes the launch of a new line of laser scanners. FARO Growth and Valuation FARO's growth metrics stand out, with forward EBIT growth of 112.48%, 1,410.71% higher than the sector median, and an astonishing year-over-year levered free cash flow growth of 24,214.19%, 164,037% above the sector median. The company's forward EBITDA growth of 42.76%, 639.9% higher than the sector median, indicates robust growth ahead. FARO's stock is undervalued according to its metrics. It has an EV/sales ratio of 1.41, 59% lower than the sector median, and a price-to-book ratio of 1.9, 45% below the sector median, making it an attractive investment at its current valuation. 5. Proto Labs Market Capitalization $897 M Proto Labs, a Minnesota-based company, specializes in on-demand manufacturing solutions, enabling businesses to avoid the costs associated with stocking large quantities of products. Despite a recent dip of around 16% in share price, Proto Labs remains a promising investment due to its strong profitability and its impressive cash flow of $24.8 million in Q3 2024, the highest since its 2020 acquisition of 3D printing company 3D Hubs. Proto Labs has also seen five upward revisions to its EPS and five to its revenue over the last 90 days, signaling stronger-than-expected growth prospects. The company is positioned to benefit from the strong sector tailwinds of the global print-on-demand market, which was valued at $6.18 billion in 2022 and is expected to grow at a CAGR of 25.8% through 2030. PRLB Valuation Proto Labs boasts an impressive long-term growth rate of 25%, 119% higher than the sector's 11.4%, and a year-over-year capital expenditure (capex) growth of 74.4%, significantly outpacing the sector's 4.3%. This suggests that Proto Labs is reinvesting a large portion of its cash back into its operations to fuel future growth. The stock is fairly valued with a forward PEG ratio of 0.06, indicating that it is significantly undervalued compared to its peers, at a 49.3% discount from the sector. Its price-to-book ratio of 1.36 is also an attractive metric, 52.83% lower than the sector median. However, its ‘D’-rated forward and trailing P/E ratios of 39.9 and 48.8, respectively, reflect its recent price decline, leading to an overall Valuation Grade of ‘C’. 6. Freshworks Market Capitalization $4.9 B Freshworks, a cloud based SaaS company founded in India, is a strong candidate for a "buy the dip" opportunity. After a rough 2024, shares in Freshworks have begun to rebound, thanks to increasing demand for its AI-enabled software solutions. The company serves over 68,000 customers, including global brands like American Express, Shopify, and Airbus. Its Q3’24 financial results were filled with positive indicators: - 22% YoY revenue growth to $186.6M - 21% YoY increase in free cash flow - Raised full year guidance - Announced a $400M buyback plan - Maintains a debtfree balance sheet with strong liquidity Freshworks also announced a 13% reduction in headcount, which is expected to improve margins further, in addition to the impact of its share repurchase program. The company is poised to benefit from the booming AI SaaS market, which is projected to grow at a CAGR of over 30% by 2031. FRSH Growth, Valuation, and Momentum Freshworks boasts an impressive A-’ Growth Score, underpinned by its solid revenue growth and forward revenue expansion of 17.8%, a 221.8% difference from the sector median. The company also has a 3-5 year long-term CAGR of 27.5%, significantly outpacing the sector by 824.2%. Its year-over-year capital expenditure growth stands at 83.3%, signaling reinvestment in future growth. In terms of valuation, Freshworks has a forward PEG of 1.51, suggesting that the stock is available at a slight discount to its peers. Similar to Proto Labs, its higher-than-average P/E ratios are likely due to its recent dip of around 9.3% over the past month. One of the standout features of Freshworks’ stock is its ‘A’ Revisions Score, which reflects 17 EPS upward revisions and 16 revenue upward revisions in the past three months. As the AI frenzy continues to dominate Wall Street, some of the valuations of major AI driven companies may be edging into overinflated territory. However,so far my Quant System highlights six ‘Strong Buy’ stocks that still exhibit strong fundamentals. These companies have, on average, risen about 60% over the past year, showcasing strong bullish momentum and solid valuations. For investors looking to integrate AI into their portfolios without succumbing to the hype, these stocks present a promising opportunity Which AI stock are you loading and why?
NYSE:CLSLong
by moonypto
2
Meta Platforms (META) Shares Decline Amid AI ConcernsMeta Platforms (META) Shares Decline Amid AI Concerns Shares of US tech giant Meta Platforms (META) fell by around 3% after media reports revealed that the company plans to reorganise its artificial intelligence operations for the fourth time in six months. The news has raised investor concerns over whether Meta’s AI strategy is on the right track. Meanwhile, Bloomberg reports that Meta intends to begin selling its first smart glasses with a built-in display next month. However, the price may come in lower than expected — at $800 — as the company is willing to accept slimmer margins to stimulate demand (and, consequently, lower its profit outlook). Technical Analysis of META Stock In our previous analysis of META’s chart, we outlined an ascending channel and suggested that the bulls might attempt to push the price higher within this structure, supported by strong fundamentals following the company’s quarterly earnings release. Since then, the price has climbed to new record highs (with the all-time peak now above $790). However, the technical outlook appears uncertain, with several bearish signals emerging: → Selling pressure may arise around the psychological $800 level. → The upper boundary of the channel is acting as resistance, and the price has formed a bearish double top pattern (as indicated by the arrows). → A bearish gap (highlighted in orange) may also act as an obstacle to further upward movement. Additionally, adding an intermediate ascending trendline to the chart reveals the formation of a bearish rising wedge pattern. At present, the price is hovering around the channel’s median line, but given the above factors, we could assume that the balance could shift in favour of the bears. In this case, META’s share price may undergo a significant correction. Should this scenario unfold, the bulls could become active again around the support level at $747 or at the lower boundary of the channel. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
NASDAQ:META
by FXOpen
2
ZETA: when data-driven ads strap on a rocketTechnical analysis: On the weekly chart, ZETA trades inside an ascending channel. After a deep pullback to the lower channel boundary (14–15$), the price bounced and consolidated above 19$, breaking the descending trendline. The nearest resistance is at 35.87$, and if broken, the next target lies at 50.51$. EMA and MA on lower timeframes have turned upward, MACD shows a bullish crossover, and volumes are increasing. The upside potential remains strong as long as support at 15–16$ holds. Tactical plan: buy from current levels and add on a retest of 18–19$, targeting 35.87$ and 50.51$. Fundamental overview: Zeta Global is a marketing and data-driven advertising company leveraging AI for targeted campaigns. The business benefits from the global digitalization trend and rising corporate spending on data analytics. Recent earnings showed revenue growth, improved margins, and reduced debt. Rising demand for adtech and institutional interest could further boost the stock. Conclusion: If ZETA breaks above 36$, it could jump into a higher price range, turning clients’ ad budgets into rocket fuel.
NYSE:ZETALong
by InvestWorld_777
Cognitive Biases on the Chart: Spot Them Before They Cost YouMarkets have enough enemies: central banks, unexpected earnings misses, rogue tweets from billionaires. The last thing you need is your own brain quietly kneecapping your trades. Yet, that’s exactly what happens every day — traders falling prey to cognitive biases, those sneaky mental shortcuts that can distort judgment, inflate confidence, and drain your account. Let’s pull back the curtain on the biggest culprits. 💍 Anchoring Bias: Marrying a Trade Ever fall in love with a number? Traders do this all the time. Anchoring bias happens when you fixate on a past price and let it lead your present decisions. Example: You bought C3 AI NYSE:AI at $45 a pop. Now it’s under $20, and you refuse to sell because “it’ll get back to $50 and beyond.” Newsflash: the market doesn’t care about your entry. Anchoring keeps you tethered to arbitrary price points while the trend moves on without you. 👉 How to counter it : Use hard data, not nostalgia. If the chart screams breakdown, like the recent drop in NYSE:AI thanks to a sales disaster , stop waiting for a magical return to your anchor. Trade the price action, not the ghost of your buy button. 😌 Loss Aversion: Pain > Pleasure Behavioral economists tell us that losing $100 feels about twice as bad as winning $100 feels good. Traders know this instinctively — which is why they often let losers run and cut winners short. Think of it: you close a trade that’s up 5% because you “don’t want to lose the gains.” Meanwhile, you let the -20% red candle sit there because “it’s only a loss if I sell.” 👉 How to counter it : Flip the script. Place stop-losses and honor them religiously, especially in peak earnings season . Train your brain to view losses as part of the game — like paying rent to the market for playing on its field. Or tuition fee for your hands-on education. 🔊 Confirmation Bias: The Echo Chamber Trade You think Ethereum BITSTAMP:ETHUSD is going to $5,000. So, naturally, you seek out influencers, news, and even memes that validate your thesis, while conveniently ignoring that pesky Fed statement hinting at liquidity tightening. This is confirmation bias: curating your information diet to make yourself feel smart, secure, and validated. 👉 How to counter it : Actively hunt for disconfirming evidence. If you’re long, force yourself to read the bear case. If it rattles you, that’s a sign your conviction might be built on shaky ground. Also, Ethereum has indeed been on a pump so strong , you’d believe it’s almost unstoppable. 💫 Recency Bias: Yesterday = Forever Markets swing, sometimes violently. Recency bias tricks you into believing that whatever just happened will keep happening. The FX:GBPUSD advanced last Thursday ? Must keep climbing further. Traders caught in this loop over-leverage into recent patterns, forgetting that markets are professional curveball pitchers. 👉 How to counter it : Zoom out. Intraday candles may trick you into seeing things that aren’t there in the long run. Daily, weekly and monthly charts often tell a different story. 💪 Gambler’s Fallacy: “I’m Due” Syndrome Every roulette player knows this one: if red’s hit five times in a row, black must be next. Traders fall for the same illusion. If FX:EURUSD has surged for eight straight sessions , surely it must drop… right? Wrong. The market doesn’t know it “owes anything.” Trends can persist longer than your margin account can survive. Reminder time: John Maynard Keynes' famously said, "Markets can remain irrational longer than you can remain solvent." 👉 How to counter it : Respect momentum. Use indicators like RSI or moving averages to spot genuine exhaustion, not just wishful thinking. 😎 Overconfidence Bias: I’m Smarter Than Them This one’s pretty widespread. After a few wins, traders start believing they’ve cracked the code. Suddenly, leverage dials up, position sizes balloon, and risk management gets left on read. Markets love humbling overconfident traders. That “can’t miss” setup? It misses. That oversized bet? Blown up. Overconfidence is why many promising traders don’t survive past year one. 👉 How to counter it : Journal your trades . Cold, hard data has a way of deflating ego bubbles. And size positions consistently — the market doesn’t care if you “feel” more confident this time. 🐑 Herd Mentality: Everyone Can’t Be Wrong… Right? If all of Reddit says “buy the dip,” surely they can’t be wrong. But if you’re hearing it from everyone, odds are the move already happened. Herd mentality gives comfort but rarely alpha. It explains bubbles, FOMO runs, and why traders pile into a hot stock minutes before it tanks. 👉 How to counter it : If you’re chasing a move because everyone else is, pause. Ask: what’s my actual edge here? If the answer is “none,” step away. 💯 The Meta-Bias: Thinking You Have None The cruel twist? Once you know about these biases, you might think you’ve conquered them. But that may not be the case. Awareness helps, but biases are hardwired into human behavior. That’s why risk management exists. Stop-losses, adequate leverage, proper diversification — they’re not just tools, they’re counter-bias survival kits. 🙌 Final Word: Outsmarting Yourself The market isn’t your enemy (unless you view BlackRock, Ken Griffin, the hedge fund bros, and other retail traders as enemies). Anchors, overconfidence, herds, recency — these are real chart criminals draining accounts in broad daylight. Smart traders don’t try to eliminate biases. They build guardrails to minimize the damage. Because at the end of the day, you can’t reprogram human psychology. But you can protect your portfolio from it. 👉 Off to you : Are you tempted to “average down because it’s due” or “let it ride because I’m on fire?” Share your thoughts in the comment section!
SP:SPXEducation
by TradingView
14
Intel in Trouble or Ready for Redemption?There is growing potential for QUALCOMM Incorporated to acquire Intel. I now believe that this development has advanced enough to warrant a fresh look at the stock Qualcomm recently approached Intel about a takeover. According to WSJ , Qualcomm has expressed interest in acquiring Intel, which, if realized, would mark one of the most significant deals in recent history Initially, this seemed like a long shot, with limited details emerging from the report. However, QCOM has continued to pursue the idea. Also QCOM has been in contact with Chinese antitrust regulators over the past month about this potential deal and is waiting until after the US presidential election to decide on making a formal offer. Since the election is just less than a month away, I believe this acquisition is becoming more of a possibility that investors should factor into their assessment of INTC. If a deal goes through, it’s likely that the acquisition will come at a premium to the current stock price, creating an opportunity for significant short term gains for investors There is always a chance that no deal will occur. In that case, potential investors should evaluate whether the stock is worth holding as a long-term investment. My outlook here is not optimistic, and I’ll delve into INTC's competitive position, as indicated by its latest inventory data, in the next section Given these two potential scenarios, I am upgrading my rating from "Sell" to "Hold." In summary, the possibility of QCOM acquiring INTC introduces a major upside catalyst that I hadn’t accounted for in my previous analysis. This potential acquisition helps offset some of the concerns about INTC as a standalone company. Unlike many financial metrics that can be interpreted in different ways, inventory levels are more straightforward. He also explained that inventory trends can provide early indicators of business cycles. For cyclical industries, rising inventories can signal overproduction as demand wanes, while shrinking inventories can indicate strong demand As shown in INTC’s most recent balance sheet, its inventory levels have generally been on the rise. For instance, in December 2014, inventory was valued at $ 4.273 billion, while the most recent figures show an increase to $ 11.244 billion. In some cases, rising inventory can signal business growth with increasing demand and production capacity, which was true for Intel in the early part of the last decade. When inventory growth exceeds the pace of business growth, it becomes a red flag. In this scenario, rising inventory suggests weakened competitiveness and declining market position—an issue that Intel currently faces, in my opinion. The following chart helps illustrate this point, showing a comparison of days of inventory outstanding (DIO) for Intel and NVIDIA over the last five years, from 2020 to 2024. DIO is a measure of how many days it takes a company to sell its inventory Given Intel's inventory buildup and declining competitive edge, I find its current valuation multiples hard to justify. Specifically, the chart highlights a comparison of price-to-earnings (P/E) ratios between Intel, NVIDIA, and AMD. Focusing on non-GAAP earnings estimates for fiscal years FY1 through FY3, Intel is currently trading with the highest P/E ratio for FY1 at 87.7 almost twice the multiple of NVIDIA and AMD, which are at 46.29 and 46.25, respectively That said, the outlook changes somewhat when considering the years further ahead. For instance, in FY2, NVIDIA’s expected P/E ratio rises to the highest at 32.77, compared to Intel's 20.02 and AMD's 29.02. However, I want to emphasize the substantial uncertainty in Intel's earnings forecasts. As shown in the next chart, the consensus estimates for Intel's earnings per share (EPS) in FY 2024 range from a low of $0.15 to a high of $0.31 (a more than twofold variation) and from a low of $0.65 to a high of $2.1 (an almost fourfold variation). Given such uncertainty, I believe investors should be cautious about relying too heavily on forward P/E ratios too far into the future. Both Intel and NVIDIA have experienced significant fluctuations in DIO over the years. Notably, both companies saw a spike in 2023 due to the COVID pandemic, which disrupted global supply chains. As the disruption faded, both firms saw a recovery (ie, a reduction in DIO). the difference in recovery is striking. Intel's DIO peaked at over 150 days in 2023 and has since decreased to 125 days a modest reduction but still above its historical average of 114 days. In contrast, NVIDIA's DIO surged to over 200 days but has rapidly dropped to 76 days, which is not only below its four-year average of 97.9 days but also near its lowest level in four years. I expect Intel to face increasing competitive pressure as rivals like NVIDIA and AMD roll out their next-generation chips, particularly NVIDIA’s Blackwell chips. I recommend potential investors keep a close eye on inventory data, as it can signal changes in competitive dynamics for the reasons discussed here. In addition to inventory issues and valuation risks, Intel faces a few other specific challenges. A significant portion of Intel’s current product lineup is concentrated in certain segments, such as PCs, which I believe are nearing market saturation plus a large share of Intel’s revenue comes from China. Given the ongoing trade tensions between the US and China, this heavy reliance on China poses a considerable geopolitical risk. These factors may limit Intel’s ability to adapt to technological advancements and shifting geopolitical conditions The potential for a QUALCOMM acquisition has emerged as a new major upside catalyst. While my outlook on Intel’s business remains pessimistic based on the latest inventory data, the acquisition possibility partially offsets these negatives, leading me to upgrade my rating from Sell to Hold or if you are risk taker like Me, load the dip
NASDAQ:INTCLong
by moonypto
Intel (INTC) Stock Price Rises 7% Amid White House RumoursIntel (INTC) Stock Price Rises 7% Amid White House Rumours Intel (INTC) stock price surged more than 7% yesterday, making it the top performer in the S&P 500 index. The rally came on the back of a report in Barron’s stating that the US government is in talks to acquire a stake in Intel: → Intel declined to comment on Barron's report. → White House spokesperson Kush Desai stated: “Discussion about hypothetical deals should be regarded as speculation unless officially announced by the Administration.” Meanwhile, Bloomberg reported that the Trump administration is negotiating with Intel over a potential US government stake in the company – a move aimed at boosting domestic manufacturing and supporting Intel’s plans to build a new facility in Ohio. The prospect of state backing for the American chipmaker triggered a sharp bullish impulse yesterday, which could extend into today. In pre-market trading, INTC shares are hovering around $25 – their highest level since March. Technical Analysis of INTC Shares Previously, when analysing the INTC chart, we highlighted the significance of the $20 level, which appeared to act as strong support from major market participants. This may have reflected expectations that the government would not abandon a strategically important US company during challenging times – particularly in the context of technological rivalry with China. For months, INTC shares had been in a downtrend (as shown by the 100- and 200-period moving averages). However, yesterday’s sharp rally now appears capable of reversing that trend: → Lower highs and lows at points A, B, and C had suggested a lower low at point D. Indeed, the price came close to setting it after a disappointing quarterly earnings report on 24 July, which led to a large bearish gap at the market open on 25 July. → Today, we may see the price break above point C’s high, signalling a potential end to the bearish market structure. Candlestick analysis this week highlights strong bullish momentum: → On Monday (indicated by an upward arrow), trading opened with a bullish gap. However, sellers became active near the upper boundary of the aforementioned bearish gap (marked with a rightward arrow), causing the candle to close with a long upper wick – a sign of weakness. → The next two sessions demonstrated that buying pressure persisted – on Tuesday, the stock opened with a bullish gap and rose steadily throughout the day, with Wednesday’s strong candle further confirming buyer activity. → Yesterday, the price confidently broke through resistance at $22.25, moving towards the $23.75 level, which could be breached today. → The RSI indicator is now at its highest level since February. The INTC share chart may be signalling that the prolonged bearish market, which began in 2021, is undergoing a significant shift in sentiment. This could mark the early stages of a rally – one that would be fundamentally justified if Intel does indeed secure government backing. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
NASDAQ:INTC
by FXOpen
1
What Is the Evening Star Candlestick Pattern?What Is the Evening Star Candlestick Pattern? Candlestick patterns offer traders a way to read price action and spot potential changes in momentum. One notable pattern is the evening star, a three-candle formation that signals the start of a possible downtrend. This article breaks down what the evening star looks like, how it works, and how traders typically use it. What Is the Evening Star Candlestick Pattern? The evening star is a three-candle pattern that traders watch for after a strong upward move. It’s considered a bearish reversal pattern, signalling that bullish momentum is fading. The setup consists of three candles: - The first candle is a large bullish candle—it shows a clear upward direction. - The second is much smaller. This middle candle—the star—reflects hesitation. Buyers and sellers are more balanced, and the market’s pace slows. - The third candle acts as confirmation. It’s a solid bearish candle that closes deep into the body of the first. The middle candle also often gaps up from the first, especially in stocks or indices, but gaps aren’t essential. What matters is the sequence: strength, indecision, reversal. The further the final candle closes into the body of the first, the stronger the pattern is considered. Evening stars can appear on any timeframe, but many traders look for them on the daily chart where the signals tend to be clearer. It’s not a pattern to act on blindly—but in the right context, such as after a sustained bullish trend, it’s a useful sign that buyers might be losing control. The Psychology Behind the Evening Star It may be always useful to frame the formations like the evening star candle pattern in the context of market psychology. Here, the first bullish candle signals buyer confidence. They drive prices higher and the candle closes strongly. The next candle is smaller, suggesting that momentum is slowing. Buyers aren’t pushing as hard, and sellers start to step in. When the third candle closes strongly bearish, it confirms that sentiment is changing. Sellers are now in control, and previous buying strength fades. This shift often happens at the end of an extended upward movement, where fewer buyers are willing to bid the price up and begin closing positions. How Traders May Use the Evening Star Candlestick Formation The evening star may be a useful part of a trader’s toolkit, especially when it lines up with other pieces of analysis. Opening and Closing a Trade The evening star pattern candlesticks become more meaningful when they appear around known areas of resistance or previous swing highs. If the market’s been edging closer to a clear level—like a horizontal resistance line, Fibonacci retracement, or trendline—and then an evening star forms, it can add weight to the idea that the rally is weakening. Some traders also watch for patterns forming near round numbers or psychological price points. If traders notice an evening star pattern occurring at a resistance level, they typically look for confluence using another indicator. The RSI might signal a bearish divergence, the price may be piercing an upper Bollinger Band, or it could also be bouncing from a 200-period EMA. Volume can be another factor—rising volume on the third candle can signal more participation behind the selling. Once a trader has confidence that a bearish reversal is likely underway, they often use the candles following the third candlestick as an entry trigger. A stop loss might be set above the middle candle’s high, while take-profit targets might be placed at an area where a bullish reversal might occur, like a support level. Some might simply trail a stop to take advantage of the strong downtrend or exit when an indicator/candlestick pattern signals that bearish momentum is fading. Marking Potential Trend Shifts Some traders use the evening star to flag potential trend exhaustion. While they may not act on the signal (e.g. they are bullish overall and not willing to take shorts yet), the presence of an evening star can suggest the uptrend is vulnerable. They may prepare to buy a pullback, partially close an existing long position, or start watching for further bearish signals. Example Trades In the example above, we see a slight rally in AUD/USD in a broader downtrend (off-screen). Price initially pierces the upper Bollinger Band, with slight rejections visible in the upper wicks. After a brief dip, the market retests highs and finds resistance. At this point, the pattern forms, with confirmation coming from relatively weak candles afterwards. Price then closes through the midline of the Bollinger Bands, providing full confirmation of a bearish reversal. In this second example, we can see a failed evening star. Here, Amazon (AMZN) gaps up over two consecutive days. That leads the 50-period EMA to slope up and cross above its 200-period counterpart—a clear bullish signal. In this context, it may be better to ignore the signal. The market continues to move higher in an uptrend with consecutive bullish gaps, confirmed by the EMA crossover, indicating a lower probability the pattern will work successfully. Like any pattern, the evening star is expected to be more reliable when contextual factors align, such as in the AUD/USD example. Strengths and Limitations of the Evening Star The evening star has its strengths and limitations. To rely on the evening star in trading, it’s worth being aware of both sides. Strengths - Clear visual structure: The three-candle formation is straightforward, especially on higher timeframes. - Logical: The pattern reflects an evident change in momentum that shifts from buying to selling pressure. - Useful in a wider toolkit: When combined with other forms of analysis (resistance levels, overbought signals, strong volume), it can help traders pinpoint potential turning points and offer an entry. Limitations - Requires confirmation: On its own, the pattern doesn’t confirm a downtrend. It’s a potential signal, but not a guarantee. - Less reliable in choppy markets: In sideways or low-volume markets, evening stars usually produce false signals. - Subject to interpretation: Candle size, wicks, and placement can vary, which means not every setup is clean or tradable. The Bottom Line The evening star pattern offers traders a structured way to identify potential turning points in the market. Its three-candle formation makes it popular among those seeking greater confirmation than single-candle patterns. FAQ What Does an Evening Star Candle Pattern Mean? It’s a three-candle formation that appears at the end of a solid uptrend. An evening star in trading indicates a potential bearish reversal or a short-term downward movement depending on market conditions and the timeframe used. Is the Evening Star Bullish or Bearish? The evening star is considered a bearish pattern that shows buyer exhaustion. A third long bearish candle reflects a change in the market sentiment. How Do an Evening Star and a Hanging Man Differ? The evening star is a three-candle pattern showing a gradual change in momentum. The hanging man is a single-candle pattern, with a small body and long lower wick. Both are bearish reversal signals, but the hanging man typically requires greater confirmation. How Do a Shooting Star and an Evening Star Differ? The shooting star is a one-candle pattern with a long upper wick and a small body that signals rejection at higher prices. The evening star is a three-candle pattern. Both formations reflect a shift from bullish to bearish sentiment. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
Nasdaq: End of Bullish Wave, 10%+ Downside in Sight?Hey Realistic Traders! Has CAPITALCOM:US100 (Nasdaq) Finally Peaked? A Reversal Signal Just Flashed. Is This the Turning Point Toward a Deeper Pullback? Let’s dive into the technicals to see what the chart is really telling us. Technical Analysis On the daily chart, the Nasdaq is starting to show signs of weakness. A bearish divergence has formed between the MACD and price movement , which is a classic signal that bullish momentum may be fading. This often indicates the potential for a trend reversal or a deeper correction. A recent drop, confirmed by a strong bearish full-body candlestick, suggests that selling pressure is increasing. If this continues, we expect a breakdown from the current bullish channel. In this scenario, the extended Wave 3 may have reached its peak. A correction could follow, with the first target at 21484, which lines up with the 0.382 Fibonacci retracement level. If the decline continues, the next downside target would be around 20067, where a previous gap may be filled. This bearish outlook remains valid as long as the price stays below 23800 . A move above that level would invalidate the setup and return the outlook to neutral. Support the channel by engaging with the content, using the rocket button, and sharing your opinions in the comments below. Disclaimer: "Please note that this analysis is solely for educational purposes and should not be considered a recommendation to take a long or short position on Nasdaq.
CAPITALCOM:US100Short
by financialfreedomgoals101
Entering UNH HereTrading Fam, I'm not going to go into a long exposé about how great the technicals are here because, truthfully, they are not great. In fact, there is relatively little that supports any kind of entry here other than the fact that this stock is extremely oversold. Really, the only reason I even considered an entry here is that my indicator has given me a buy. If you have been following me for any length of time, you know that this thing is knocking it out of the park in stocks. But to keep it safe, I am entering a 1:2 long rrr, shooting for $327 with a $217 SL. Let's see if my little indicator can keep its amazing win streak going even without a lot of technicals to support it. ✌️Stew
NYSE:UNHLong
by stewdamus
1