Chinese Market Will Boost Tesla’s Earnings Report

Tesla, Inc., the developer, manufacturer, seller of electric vehicles and energy generation and storage systems, will present an earnings report for the Q3 on October 20

Investors will be closely watching Tesla’s quarterly results on Wednesday for indications of its performance in China, where the electric carmaker has posted robust sales in the face of negative publicity and a host of new domestic competitors. According to Tesla’s report, sales in China grew by 44% from quarter to quarter.

The potential growth might be caused by the better-than-expected performance of the Shanghai factory, which uses domestic details including batteries.

Experts expect that Tesla will announce about revenue jump, which was driven by global deliveries in the July to September period. Despite this, some analysts believe that the worldwide supply chain issues could increase costs and decrease the company’s revenue.

Expectations

Analysts and experts forecast: Revenue = $13.57B, Earnings per share = $1.52

Technical analysis

Daily chart

Volume Indicators

Tick volume

The fxMarket is decentralized so it’s not possible to count all the contracts and their sizes like it’s done at stock markets. As a result, fxTraders use indicators of tick volume.

A tick is any single change or movement in the quote up or down. MetaTrader measures the number of ticks during a single period of time. Thus it’s possible to see how actively the market traded in particular moments. In other words, we don’t know whether there were 500 or 500,000 orders within a certain period, but we know how many ticks the price moved. This is what a tick volume is. It’s important to understand its nature.

How to implement tick volume

MetaTrader offers several indicators of tick volume. To apply them, click Insert, then Indicators and choose Volumes. There are 4 indicators:

1. Volumes

The indicator shows the number of price changes (ticks) within each period of a selected timeframe. Volume bars are painted green if they are bigger than the previous ones and red if volume declines.

2. On Balance Volume (OBV)

The indicator is represented in form of a line. If the close price of the current candlestick is higher than that of the previous one, the current volume is added to the previous OBV and the line goes up. If the current candlestick close price is lower than of the previous one, the current volume is subtracted from the previous OBV making the indicator go down. It’s assumed that OBV changes precede price changes, so it can provide signals.

3. Money Flow Index (MFI)

The indicator shows the rate at which money is piled into an asset and then withdrawn from it. Regard it as a version of RSI that takes into account volumes.

4. Accumulation/Distribution

This is another indicator calculated on the basis of both price and volume. The higher the volume, the greater the contribution of the price change (for this period of time) will make to the value of the indicator.

Using volumes for technical analysis

Volume indicators can perform very useful tasks:

1. Measure the strength of a trend

A trend is strong when it’s confirmed by rising volume because it means that the market’s interest in this trend is high. So, in an uptrend, volume should increase when the price is moving up and decrease when the price is moving down, while in a downtrend this means increased volume when the price is moving down and decreased volume when the price is moving up.

At the picture above you can see that volume declines during corrections in an uptrend. In the final part of the chart, the new high is not confirmed by volume. It means a likely reversal down.

2. Spot reversals early

It’s always difficult to distinguish between a reversal and a correction at an early stage. Volume indicators help to do it sooner and join the new trend as early as possible.

The price formed a “Head and Shoulders pattern. Volume was low during the top and even lower at the second shoulder: a confirmation that the market had no more strength to go up.

If there’s a divergence between the price and the volume indicator, it’s a signal of a potential reversal of the existing trend.

3. Confirm a breakout

Volumes are usually low during a consolidation period. If a breakthrough of a range is accompanied by a spike in volume, there’s a higher chance that this is a real and not a false breakout.

Volume rose at the moment when the price went above a resistance level. This helped the price continue moving in the direction of a breakthrough.

4. Identify strong areas of support/resistance

The areas where the price is trading with high volumes may represent significant obstacles on the way of the price and, consequently, good entry and exit level for traders.

Conclusion

Volume indicators in MetaTrader are not independent signals providers but they can be used for confirmation. After all, the dynamics of volume tells us better than anything how active the trading is. This is a unique knowledge which is not really provided by other indicators. As a result, the indicators of volume will surely make a great contribution to your trading system.

XRP is UK’s most popular crypto

eToro, the social trading platform, recently revealed that XRP is UK's most popular cryptocurrency, followed by Cardano (ADA). Crypto traders in the UK have put more funds in XRP than any other crypto in Q3 2021.

The year-on-year increase in XRP price is over 100%; despite higher gains in Bitcoin and Ethereum, traders held on to XRP for its volatility and risk-adjusted returns.

Interestingly, XRP has witnessed a spike in retail and institutional adoption over the past few months. Ripple collaborated with the Digital Pound Foundation and prepared to work in line with the firm's objectives to work with global banks and resolve issues related to CBDC development.

XRP is engaging with centralized institutions for the development of CBDCs. After announcing its partnership with Bhutan's Monetary Authority, Ripple works with the UK's central bank for the "Digital Pound Sterling."

Ripple has positioned itself to be a bridge in CBDC development. Nearly 80% of central banks are currently exploring CBDC development, and the Ripple network's engagement with centralized institutions is expected to boost XRP's utility.

The world's sixth-largest cryptocurrency started at $0.22 in 2021 and hit a high of $1.9 in April before further correction.

Cryptocurrency analyst @Koolaid_crypto has predicted a big move in XRP price over the next two days. 

Shiba Inu on-chain activity is on the rise, community awaits Robinhood listing of SHIB

The Shiba Inu token, popular as a Dogecoin-killer, has made a comeback with a massive recovery, posting greater than 50% gains overnight. The decentralized Shiba-Inu-themed cryptocurrency is prepared to overtake Dogecoin with the updates in its ecosystem and its recent rally. 

Launched in August 2020, SHIB has a market capitalization of $6.4 billion against Dogecoin’s $31.2 billion. Analysts are comparing SHIB’s current rally to Dogecoin’s rise of April 2018. However, a cooling-off period followed, and DOGE price plunged by 75% from its peak of $0.63 since the end of that rally.

Analysts are of the opinion that DOGE is in the accumulation phase, while SHIB is leading the way in unrealized gains for holders. 

SHIB’s market dominance is considered a measure of the token’s popularity in the community. The metric tracks SHIB’s market cap as a percentage of the overall cryptocurrency market capitalization, and this number has increased over 40% over the past three days. The rise in dominance followed the token’s spike in price based on the following chart.

SHIB market capitalization dominance

The memecoin now has 682,031 holders, all awaiting the SHIB listing on the Robinhood exchange. The exchange is yet to announce the listing of the Dogecoin-killer, and rumors of the token’s listing on Robinhood do the rounds every few weeks, influencing SHIB price positively. 

A major event lined up in the SHIB ecosystem is the launch of 10,000 NFTs, Shiboshis on Shiba Swap. Earlier last week, Shytoshi Kusama, head of Shiba Inu ecosystem projects, announced the NFT sale. 

The date of the exclusive NFT sale is yet to be revealed. Since Shiboshis will be available for sale only to LEASH holders in the first 24 hours, there is intense competition for acquiring the NFTs. 

Shytoshi Kusama hinted at further utility of the NFTs, the blog post reads, 

Finally, at release, the Shiboshi roadmap will explain how we plan to expand on Shiboshis and use these unique NFTs to grow the Shib Token Trifecta. Hint: Gaming.

The Shiba Inu ecosystem is yet to see “play to earn” or NFT gaming metaverse applications. The arrival of Shiboshis is set to change that and boost the utility of SHIB tokens and the NFTs in the token’s ecosystem. 

SHIB holders expect the ongoing price rally to continue, with events such as the NFT launch lined up. Another key factor contributing to the rally is SHIB whale activity. 

A mysterious SHIB whale recently purchased over $43 million worth of SHIB tokens on September 30. The purchase is currently worth $77.2 million, a nearly 45% gain within five days. 

Shiba Inu whale purchases $43 million (now $77.2 million) worth of SHIB on September 30,2021.

Tesla vehicle deliveries hit another record in Q3, beats analysts' estimates

(Reuters) -Tesla Inc said on Saturday it had delivered a record electric cars in the third quarter, beating Wall Street estimates after Chief Executive Elon Musk asked staff to "go super hardcore" to make a quarter-end delivery push.

Tesla (NASDAQ:TSLA) has weathered the chip crisis better than rivals, with its overall deliveries surging 20% in the July to September period from its previous record in the second quarter, marking the sixth consecutive quarter-on-quarter gains. .

In China, rising exports to Europe and the introduction of a cheaper Model Y helped boost Tesla's production, analysts said.

Musk said Tesla suffered an extremely severe parts shortage earlier in the third quarter and had urged employees to make quarter-end delivery push, Reuters reported last month, citing an internal company email.

"The end of quarter delivery wave is unusually high this time," he said in the email.

Tesla delivered 241,300 vehicles globally in the July to September quarter, up 73% from a year earlier. Analysts had expected the electric-car maker to deliver 229,242 vehicles, according to Refinitiv data.

General Motors (NYSE:GM), Honda and some of its bigger rivals posted declines in U.S. sales in the third quarter, hit by a prolonged chip shortage. GM's third-quarter U.S. sales fell nearly 33% to its lowest level in more than a decade.

Tesla said it delivered 232,025 of its Model 3 compact cars and Model Y sport-utility vehicles and 9,275 of its flagship Model S and Model X cars to customers in the quarter.

Total production in the third quarter rose over 15% to 237,823 vehicles from the prior quarter.

(CHINA)

Gary Black, portfolio manager at the Future Fund and a Tesla bull, said that Tesla's deliveries were driven by record deliveries in China, which was "putting to rest any notion China demand is slowing."

Tesla faces scrutiny from both regulators and the public and growing competition from local rivals.

Tesla has not released its September China sales yet, and in August, its Shanghai factory exported more than two thirds of its vehicles to Europe and Asian countries.