Carnival Corp (CCL) still afloat
Leisure travel companies have had, unsurprisingly, an extremely tough 2020. With global travel limited since the first lockdown in Q1, airlines, cruise providers, and all related businesses have seen huge losses throughout 2020.
Early in November, Pfizer announced their vaccine in development could be more than 90% effective at preventing COVID-19, with no severe side effects. This was shortly followed by Moderna announcing a 95% effective rate, and then for a third time this month, AstraZeneca joined the party, claiming up to 90% efficacy in interim testing.
This announcement saw stock prices surge in the leisure travel industry as investors speculate that we have seen the worst and the light at the end of the tunnel is in sight.
Last week, Carnival announced that they would be opening up one of their several brands and resuming cruising out of the Canary Islands from December 5th, 2020.
The technicals presented a textbook entry. The daily timeframe was developing a descending wedge pattern of which we broke out of upon positive vaccine news. After this bullish momentum, our confluence factors were aligning beautifully, and we simply waited for a retrace to test these previous resistance levels as now support.
Price has now pushed up into our first profit target area and still looks exceptionally bullish. We can expect this momentum to continue to between $25-$28 in the coming weeks.
BTCUSD Tickling ATH'S
In last week's TMC HYPE, we detail why we feel this bull run is different for Bitcoin, and what the main drivers have been so far. Further demonstration of this has been the uncertainty present as investors and traders seem divided on where price will go next, unlike the December 2017 bull run where it seemed as though everyone expected the bullish momentum to never end.
From a technical perspective in the last week we saw price get dangerously close to all-time highs. After falling just short price fell from the highs to around $16,300, pulling back on the daily timeframe. We are closing out the weekly chart with deceleration and with price action clearly overextended.
The overall picture for BTC is still extremely bullish, and a lot of eyes will be focused on the monthly candle closure for November. If the price remains over $13,791, this will be the highest monthly close in Bitcoin's history, which is undoubtedly significant.
At this point, where we expect short term price to go next is pure speculation. After this sizeable bullish run, we would not be surprised to see ATH's breached and price moving to around $24,000 before getting a deeper pullback on the daily chart.
That said, this is crypto, so surely 'MOON SOON'?
XRP Rocket Ship
XRP has seen a +140% month where the price is currently sitting and is now playing catchup with big brothers, BTC and ETH. There appears to be several catalysts that have sparked this rocket ship.
When XRP had a +27% rise in one day, on November 22nd, we saw a massive spike in unique XRP addresses. This indicates a positive sentiment towards the digital asset and becomes a self-fulfilling prophecy as other investors will see this as a positive.
Rumours emerged that Ripple may be debuting a new service as it was reported Ripple Labs filed a trademark for a product called Paystring with the USA Patent and Trademark Office. Whether or not this will benefit XRP remains unknown. Still, it sure created a buzz within the crypto community.
Lastly, Ripple released a report detailing a repurchasing program and confirming that they have bought back $45.5million worth of XRP in Q3 2020, and they may continue to purchase to support healthy markets.
We commonly see repurchase schemes in the stock market. It typically will cause buyer demand as investors see this as the heads of a business showing confidence in their business moving forward. This buyer demand can cause an asset to increase; however, $45.5 million may not be a large enough figure to impact the value of XRP.
Also on our Radar
AUD & NZD: Both the Australian and New Zealand Dollar have continued their bullish momentum as the current runs continue to look overextended and appear to be running out of steam at strong levels. We are still waiting to execute quick pullbacks on these pairs as the daily timeframes further decelerate.
Equities: DJI has closed its weekly candle forming a new all-time high. As bullish as the weekly close is, the daily shows a different story and appears to be decelerating, giving us an indication we could soon see shorting opportunities from these heights.
Gold (XAU/USD): Gold is at an interesting level after having a strong weekly pullback. We saw Gold hit and print new all-time highs in August this year. Since then, we've been waiting for a pullback to the previous monthly high, which is where the price is currently sitting. Lots more development is needed before we look to execute any longs, but Gold is now on our radar.
TMC Club - Thomas Johnston
As crypto is buzzing right now, Bitcoin is a hair from ATH's and altcoins powering up and following this bullish momentum. It only seemed right to share our Crypto King, Tom Johnston.
Tom has now been trading for over three years. His primary focus is in the crypto space, and this year he joined a prop firm in their crypto trading division. Check out Tom's full interview here.
What's happening this week?
Monday, November 30, 2020 @ 1pm PT
Market Update - lead by Jonny Godfrey
Wednesday, December 2, 2020 @ 1pm PT
Market Update - lead by Jonny Godfrey
Friday, December 4, 2020 @ 1pm PT
Insights - lead by Irek Piekarski
All the best for the week ahead and we'll see you in the club!
Jonny Godfrey & the TMC Team
PS. For members of TMC Diamond, make sure catch up on last week's Coaching Call: Refining Your Trading Plans. This monster session lead by Irek ran for 2.5 hours and is a direct complement to Season 3 of Trading Blueprint: Trading Plan Creation. With only one month left of 2020, it's time to get those trading plans solidified.