I will focus on the daily chart in order to get a wider view on what is coming the next few weeks, if we focus exclusively on price and volume we can see:
-Price has gone up after the biggest stimulus in history was announced, as you can see on the volume coming into the asset. Probably due as the big investors new that that was the bottom of the crisis.
- If we check volume (on balance volume indicator) we can see that there is a lack of volume coming in since early April, at the same time the oil crisis was rising an the fear of handling with 2 crisis at the same time was getting more real.
My conclusions attending to the technical observations is that we are getting into a lateral period on the hope that there are new fundamental news showing up in the near future (end Q2)
What could happen next?
A- Companies reported the worst Q1 intentionaly in order to get attention from goverments and this way push them to inject cash into the systema and speed up the re opening of the businesses. On Q2 they would remove all inmovilised from the balance sheet reporting a modest results that markets would interpretate as good, compare to the Q1 results.
B- Q1 as commented but on Q2 companies keep bad results and it could push the stock market down once more. I'm not very confident on this scenario as this could open the discussion on places like Europe of rescuing companies under the figure of nationalisation, and I really don't think any company wants that.
If you think differently, please, let me know. It is interesting to exchange opinions.
If you liked the idea, let me know that it's worthy so I will keep making anaysis like this.
-Price has gone up after the biggest stimulus in history was announced, as you can see on the volume coming into the asset. Probably due as the big investors new that that was the bottom of the crisis.
- If we check volume (on balance volume indicator) we can see that there is a lack of volume coming in since early April, at the same time the oil crisis was rising an the fear of handling with 2 crisis at the same time was getting more real.
My conclusions attending to the technical observations is that we are getting into a lateral period on the hope that there are new fundamental news showing up in the near future (end Q2)
What could happen next?
A- Companies reported the worst Q1 intentionaly in order to get attention from goverments and this way push them to inject cash into the systema and speed up the re opening of the businesses. On Q2 they would remove all inmovilised from the balance sheet reporting a modest results that markets would interpretate as good, compare to the Q1 results.
B- Q1 as commented but on Q2 companies keep bad results and it could push the stock market down once more. I'm not very confident on this scenario as this could open the discussion on places like Europe of rescuing companies under the figure of nationalisation, and I really don't think any company wants that.
If you think differently, please, let me know. It is interesting to exchange opinions.
If you liked the idea, let me know that it's worthy so I will keep making anaysis like this.