Targets for this cheap AIM stock, FTSE 100 and bitcoin

TL;DR

ASOS shares have fallen significantly, but technical analysis suggests a potential buying opportunity. The FTSE is at a critical point, with a possible breakout but weakening bullish conviction. Bitcoin's double top pattern indicates a potential leading indicator for lower markets in 2022.

Transcript

hello it's john burford with chart of the week for wednesday the 29th of december this is the last video and cotw of the year normally uh we would um issue our uh learned forecasts for next year i i've changed the routine a little bit here i'm going to offer you a a a trade in asos the online fashion and beauty operation that has fallen on very har... Read More

Key Insights

• ❓ ASOS shares have experienced a significant decline in value, but technical analysis indicators suggest a potential buying opportunity.
• ❓ The FTSE is at a critical juncture, with a possible breakout, but caution is advised due to weakening bullish conviction and momentum divergence.
• 😘 Bitcoin's double top pattern indicates a potential leading indicator for lower asset markets in 2022.
• 🤪 The author advises caution and sitting on the sidelines rather than going all-in bullish in the current market conditions.
• 👶 Market reassessments often occur at the start of a new year, which could impact the FTSE's outlook.
• 🏅 Bitcoin's virtual and speculative nature distinguishes it from shares and gold, making it an ultimate speculation asset.
• 📉 The collapse and rally in Bitcoin's price suggest a double top pattern, which could signal further downwards movement.

Questions & Answers

Q: Why has ASOS seen a significant decline in its share value?

ASOS shares have been in a downtrend for the past nine months, losing two-thirds of their value. This decline can be attributed to a decrease in bullish sentiment surrounding the company.

Q: What technical analysis indicators suggest a buying opportunity for ASOS shares?

The analysis highlights two key indicators: the Fibonacci 76% retrace of the rally and a significant momentum divergence. These indicators indicate potential support and buying interest in a bear market.

Q: What is the current outlook for the FTSE?

The FTSE is approaching a breakout point, as it has rallied off the support line and is near a major downtrend line. However, caution is advised due to weakening bullish conviction and a potential reassessment in the new year.

Q: How does Bitcoin's chart pattern indicate a potential leading indicator for lower markets?

Bitcoin experienced a double top pattern after a massive rally, followed by a significant collapse. This pattern suggests a potential reversal and could serve as a leading indicator for lower markets in 2022.

Summary & Key Takeaways

• ASOS shares have lost two-thirds of their value in the past nine months, presenting a potential buying opportunity due to technical analysis indicators like the Fibonacci 76% retrace and momentum divergence.

• The FTSE is approaching a breakout point, but caution is advised due to weakening bullish conviction and momentum divergence.

• Bitcoin experienced a massive rally followed by a collapse and a double top pattern, suggesting a potential leading indicator for lower markets in 2022.