Zak Mir, technical analyst for ShareProphets.com, opened the Finance Show on Tip TV alongside Bill Hubard, chief economist for Bullion Capital, to discuss the next 24 hours and its effect on the Fed rate hike situation, as well as a look at a few single stocks including: African Potash, AMUR minerals and UK Oil and Gas.
Fed situation to be decided by events within the next 24 hours
Hubard outlined how the ECB meeting today and the non-farm payroll numbers being released tomorrow will play a significant part in confirming whether September is the most likely timing for an interest rate rise. He identified the continual period of strong US data, which has seen Fed fund futures move up to 40% for action on the 17th of September 2015. Hubard continued and noted that emerging market central banks simply told the Fed to hurry up when concerning the hike after the central bank meeting last weekend. He added how the Fed raised interest rates 17 consecutive times between 2003 and 2006, but concluded that this won’t happen.
On a similar note, Mir commented that Friday’s close tomorrow will result in the world having a better understanding of all global markets.
Single Stocks: African Potash and Amur Minerals Corp (LONDON:A7L) up while UK Oil & Gas (LONDON:UKOGa) hitting resistance
Mir highlighted that whilst we remain above 2p, African Potash stocks are in a rising channel, and although 4p looks rich, the stock will certainly see some upside.
In terms of AMUR minerals, Mir noted how the 200 day moving average is providing support, and how we have moved up to 17p in the past few days. He added that clearing the 50 day moving average could see a rise to up to 25p.
To finish the segment, Mir outlined the 50 day moving average for UK Oil and Gas was acting as resistance, but if that was cleared he believes we could see 2.5p.