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14.01.2025
Merck Becomes Interesting to Be Added to a Portfolio

Merck & Co (MRK) stocks have shown signs of becoming a compelling buy opportunity. Over the past six months, the stock has been in a downtrend, declining 29.8% to $94.50 per share. However, since mid-November, MRK has demonstrated a reversal of momentum, rebounding by 10.0% to reach $104.87 on December 5. Following a brief pullback and consolidation period, the stock has retested the downtrend resistance and appears poised to continue its upward trajectory.

With prices currently positioned to target $110.00, this represents a potential 9-10% upside from the present levels. Setting a stop-loss at $93.50 aligns with a prudent risk management strategy, providing protection against further downside while allowing for upside potential. The recent consolidation phase further supports the case for a breakout, making this an attractive moment to consider initiating or adding to a position in MRK.

23.01.2025
Ontology Is Sliding Towards $0.2000

Ontology (ONT) is down 2.3% this week, trading at $0.2176, in line with the broader crypto market where Bitcoin (BTC) has declined 2.0% to $101,632. While the new U.S. administration has made some strides toward fairer crypto regulation, Donald Trump has remained silent on the highly anticipated issue of adding Bitcoin to U.S. federal reserves.

Market speculation is rampant, with figures like BlackRock CEO Larry Fink suggesting Bitcoin could surge to $700,000 per coin if sovereign wealth funds begin accumulating. Other forecasts predict Bitcoin reaching $250,000 by year-end. While such projections could foster optimism, the lack of decisive action or announcements regarding U.S. crypto reserves is weighing heavily on the market.

For Ontology, the situation remains bearish. Having breached the critical support at $0.2500 last week, the token is now approaching the $0.2000 level. A failure to provide clear evidence or statements about U.S. federal crypto reserve plans could see ONT fall even further, breaching the $0.2000 mark and deepening its losses.

09.01.2025
VeChain Is Suffering on Rising Borrowing Costs

VeChain (VET) has fallen 12.7% this week, trading at $0.0445, underperforming the broader cryptocurrency market. Bitcoin (BTC), the leading cryptocurrency, has declined by 5.6% to $93,220, with bearish momentum building as it approaches key support at $89,000-$91,000. This decline is largely attributed to tightening monetary conditions in the United States, which continue to weigh on risk assets. Investor confidence is further shaken by significant net outflows from spot BTC-ETFs, which lost $583 million on Wednesday, marking the second-largest single-day outflow on record.

If BTC falls below the critical support level of $89,000-$91,000, VeChain is likely to extend its losses, with prices potentially declining another 10% to $0.0400. A sustained drop in BTC could push VET even lower, towards $0.0300. Conversely, a strong rebound in BTC prices to the $100,000 level could drive VET back up to $0.0500, representing a recovery of approximately 12% from current levels.

16.01.2025
Delta Is Taking Off To Update Its Highs

Delta Air Lines stock rose markedly by low double digits in the first ten days of the new year. The U.S. carrier has served more than 200 million customers in 2024, when it was also recognized by J.D. Power, a leading American data analytics and consumer intelligence company, for being No. 1 in First/Business and Premium Economy Passenger Satisfaction. Travelers became more willing to spend extra money for swanky seats when meeting a high level of service. Delta is just positioning itself as the nation's premium airline. And what's more important, its Christmas quarter's earnings reportedly surpassed average analyst pool projections. Driven by stronger travel demand, smart financial management and capacity discipline, Delta business provided last three-months' profit of $1.85 per share vs $1.28 at the same period one year ago, compared to $1.75 in consensus estimates. On January 10, the airline industry leader put its future profit levels within a range between $0.70 and $1 per share in the current quarter through the end of March, while analyst expectations were focused on $0.77 cents, according to data compiled by LSEG. The starting months of each year always perform worse. It is clear that all carriers made losses in the Covid years of 2020-2022, but Delta profits only recovered into a range from $0.25 to $0.45 in the first quarter of 2023 and 2024, respectively, but Q1 profit numbers varied from $0.75 to $0.96 even in the three blessed years before the pandemic. Delta added that it is forecasting annual earnings in excess of $7.35 a share, which would be the highest in its 100-year history, based on its planned revenue growth of 7% to 9% in the March quarter from a year ago. The announcement could be compared to an adjusted profit of $6.16 a share in 2024. The company happily breaks through ticket prices' rising effects, almost undisturbed by a reduction in airline seats in the domestic market, which was peculiar for most carriers. Thus, new expectations created a fertile ground for setting new price records, even though price movements on Delta charts look most convincing among its other American rivals.

By the way, Citigroup analysts freshly updated their outlook on Delta Air Lines shares to raise their price target to $80 from the previous $77, vs the actual range around $65 per share where the stock just came after a reasonable market correction from last week's and all-time highs. Citigroup said it has included factors like higher revenue per available seat mile, projections of slightly lower fuel prices, increased taxation, a minor rise in share count, and the incorporation of fourth-quarter 2024 results into their financial model, which has projected Delta's profit at $7.49 per share in 2024 and $8.72 in 2025. Delta shares are Buy-rated at Citi, and we agree with their positive estimates in general, while keeping in mind even better price goals somewhere between $82.5 and $85.

14.01.2025
Tezos Is Seen Hodling above $1.200

Tezos (XTZ) has declined slightly by 0.2% this week, trading at $1.249, following Bitcoin’s (BTC) drop to $89,158, which triggered widespread altcoin sell-offs due to concerns of a potential further decline in BTC to $80,000. However, Bitcoin managed to hold above the critical support level at $89,000-$91,000, offering some relief to the broader crypto market.

Speculation about a shift in U.S. trade policy has provided additional support to crypto assets. Reports suggest the new U.S. administration may pursue a gradual increase in tariffs rather than an abrupt hike, which could help alleviate inflationary pressures and lead to a less aggressive monetary stance from the Federal Reserve.

This development is a positive signal for the cryptocurrency market and may help Tezos maintain its position above the key support level of $1.200.

The Dollar Is Picking Up Steam

The Greenback is set for the third consecutive month of growth, as the U.S. Dollar index to commonly weigh the world's major reserve currency against six others already climbed from nearly 100.5 on last day of September to above 107 by mid-December. The European Central Bank's and the Bank of Canada's decisions to lower interest rates by a quarter-point to 3.00% and by a half-point to 3.25%, correspondingly, certainly made a definite contribution to the U.S. Dollar rally, as well as the European Central Bank head's notice that some policy-setters had proposed a larger, 0.50% cut, with the door clearly opened for further cuts. China's stimulus measures agenda against the country's deflationary flags and global trade war ghosts taking shape under incoming president Donald Trump also work beautifully to the advantage of the U.S. currency dominance. The downside economic risks in the Eurozone and some other regions are here. However, the Federal Reserve's (Fed) cut-now-and-then-wait signals presumably have played a central role in further drop in EURUSD, GBPUSD, AUDUSD, NZDUSD, as well as a sharp increase in USDJPY.

The U.S. Dollar-nominated borrowing costs are still higher, with futures traders on CME pricing a more than 95% chance of decreasing the Fed's target range by 0.25% to 4.25%-4.50% next Wednesday, December 18, but only a 20.7% chance of another one dovish step at the end of January. March 19 March could be the next sticking point for further small rate cuts, yet that cannot be taken for granted, as only 60% are ready to bet on this rate cut scenario for the first half of 2025, according to CME's FedWatch tool. As an example, San Francisco Fed president Mary Daly, represented this typical mind-set this week by saying that she was "comfortable" with possible cutting rates in December, but having "a more thoughtful and cautious approach" on further reductions. Partial and normally intraday retracements above 1.05 in EURUSD due to a profit-taking activity before the end of the week should not lead anyone astray about the general direction on the foreign exchange market.

Such episodes of pointless price movements are seemingly reminiscent of a rather controversial initial response of the crowd of traders to the U.S. non-farm payrolls on the first Friday of December. The latest slice of the U.S. labour data, including 227,000 new jobs after suddenly declining to 36,000 a month ago, and a 0.4% average hourly wages surplus in November to lead to a stable 4.0% growth of personal earnings YoY, are solid pro-inflationary arguments to stop the Fed's policy makers from drastic steps. A small nominally rise in the unemployment rate from 4.1% to 4.2%, with a dip fear of being too late to prevent sliding into recession in the future, are the only drivers for the Fed to keep cutting rates. Therefore, the spike in EURUSD to nearly 1.0630 on the labour data set of December 6 was only a good excuse for selling this uptick to pressure the single currency below 1.0550 during the same trading session and then to drop to the area around 1.0450 in the next few days.

We suppose the market would deal in a similar way with some current upticks above 1.05. Thus, the next target range for EURUSD looks to be between the annual low of 1.0332 and 1.0375, with a retest below 1.25 as a basic scenario for GBPUSD. More annual dips for the Aussie and Kiwi, as well as fresh highs above 1.45 in USDCAD, are widely expected by year-end.

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Rafael Quintana Martinez
Money Manager de alto rendimiento, con una sólida formación académica, profesional y de campo. Más de 9 años de experiencia especializada en el comercio de mercados financieros internacionales. La devoción, la fiabilidad, la responsabilidad y la ética impulsan mi vida. Actualmente me desempeño como Analista Senior para Metadoro. https://metadoro.com/es https://mx.investing.com/members/contributors/235587671/ https://es.tradingview.com/chart/EURUSD/rE9gVips/
Ethereum Intitates a PullBack to $3,500

Ethereum (ETH) has declined by 2.5% this week to $3,896, mirroring broader crypto market trends where Bitcoin (BTC) remains stable at $100,400. Earlier this week, ETH experienced a sharp 12.7% drop to $3,484, triggered by the announcement of Alphabet's new quantum chip, Willow. While the direct impact of this news on Ethereum is limited, it exposed the vulnerability of the crypto market, which appears to be losing momentum following its recent rally.

Investors showed willingness to sustain an upward trajectory at $3,600, leading to a rebound from this level. However, the recovery stalled near the $4,000 resistance, which remains a formidable barrier for ETH. The inability to break above this level indicates weakening bullish momentum. A pullback toward $3,500 has already begun and is likely to persist, reflecting the fading appetite for significant upside in the current market environment.

3604
B
More Fundamentals behind a 3-Fold Broadcom Price Jump

Broadcom (AVGO) is going to release its quarterly earnings today after the closing bell. In the meantime, I suppose its product offering in the market is as strong as it has ever been. Its capitalization is well progressing on the road towards $1 trillion, achieving interim goals around $835 billion now when its share price is pressed closer to all-time highs once again. Thus, I feel reasonable just to hold my existing bullish positions in Broadcom, regardless of a direct market response to this particular earnings report, and maybe even add more shares of Broadcom to my personal portfolio in case of any noticeable retracement or simply enjoy the further growth in case of a stronger bullish momentum in after-hours trading.

For me, it is not at all a question of whether the record sales (widely expected above $14 billion) will exceed previous sales (at $13.07 billion in Q2) by another billion dollars or so. If this doesn’t happen right now, it will happen later anyway, as more important positive signals are coming. For me, and I think for many in the Wall Street crowd, a greater call came when Apple suddenly said a day before that it was collaborating with Broadcom on developing Apple's first server chip tailored for artificial intelligence. Following the news, Broadcom shares jumped by more than 5% on December 11, even though the stock stepped about 3% back the next day due to the natural wave of profit-taking before earnings. According to sources familiar with the matter, Reuters said, the chip is internally code-named "Baltra", and it would be ready for mass production by 2026. A cooperative work will further cement Apple's efforts to expand into the field of AI-driven hardware. Broadcom typically sells its production directly to customers rather than licensing it as an intellectual property, but now it reportedly decided to provide Apple with a more limited range of design services while still supplying its networking technology.

Broadcom's chips and digital connectivity solutions serve to develop advanced algorithms for AI data centers, with the company being a real leader in its niche, especially after one of its former rivals VMware became a part of Broadcom in November 2023. Some business-critical technologies of flagship corporations like Apple, Samsung, Huawei or Cisco are now nearly impossible to imagine without delivery of components and close cooperation with Broadcom. For nearly two decades, as an example, Broadcom-originated chips used for Bluetooth, Wi-Fi and global navigation have been indispensable for the Samsung Galaxy series of devices. Broadcom sales to Samsung represent more than 20% of the overall Broadcom sales, while its sales to Apple were about 13.3% until recently. Now Apple's share of Broadcom's shipments, and therefore Broadcom's profits, will obviously increase, which will further strengthen the fundamental basis for the almost 3-fold increase in AVGO share price over the past 18 months.

3141
Rafael Quintana Martinez
Money Manager de alto rendimiento, con una sólida formación académica, profesional y de campo. Más de 9 años de experiencia especializada en el comercio de mercados financieros internacionales. La devoción, la fiabilidad, la responsabilidad y la ética impulsan mi vida. Actualmente me desempeño como Analista Senior para Metadoro. https://metadoro.com/es https://mx.investing.com/members/contributors/235587671/ https://es.tradingview.com/chart/EURUSD/rE9gVips/
Chiliz May Drop to $0.1000

Chiliz (CHZ) has declined by 9.2% this week to $0.1187, significantly underperforming the broader crypto market, where Bitcoin (BTC) remains steady at $100,048. Earlier in the week, CHZ plunged by 30.0% to a low of $0.0906 before recovering partially, supported by a broader market rebound. Despite this recovery, the outlook for CHZ remains bearish, as the token shows limited independent momentum and remains heavily reliant on overall market dynamics.

Breaking through the resistance at $0.1250 seems unlikely given the current conditions. With no substantial catalysts to drive further growth, CHZ is expected to face continued selling pressure, potentially sliding back toward $0.1000 in the near term.

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