The ESG theme has taken the capital markets by storm in 2020. Fund flows into this space have been relentless, helping to drive the clean energy sector to fresh highs. In the first half of 2020, 23-new exchange-traded funds were launched under the ESG umbrella. By the end of the Q3, ESG index funds hit $250 billion in value. The ESG umbrella focuses on many different areas and has flourished during the pandemic. With a vaccine on the horizon, the question for investors is whether this sector will remain sustainable.
What is ESG and ESG Investing
The term ESG stands for:
Environmental
Governance
After an incredible upside price rally that took place throughout the end of 2020, the recent 20% decline in Bitcoin prices, seemingly overnight on January 4th, may have come as a shock to many Bitcoin traders. The deep low price was reached in early trading overnight on very heavy volume – reaching levels near $27,734. Compared to the high price level reached just 27 hours earlier, near $34,800, this strong price decline represents a 20% sell off (over -$7040).
Bitcoin Daily Chart
If this is the start of a broader downtrend for Bitcoin, we’ll have to watch the MAGENTA trend level on this Daily Bitcoin chart below for an indication the upward support channel is breached. This may be a deep pullback in a stronger uptrend still. But the heavy volume and very deep decline suggest the upside parabolic price trend may have “popped” and Bitcoin may be setting up for a bigger change in trend in early 2021.
In the first part of this research article, we highlighted some of W.D. Gann’s research, particularly the theory of price vibrations, angles, slopes, and how they relate to future price projections/targets. We also showed how important it was to understand what price does when it reaches these critical inflection points. In this second part of our research, we are going to explore Gann time/price cycles and how they relate to our Fibonacci Price Amplitude Arcs.
Our research will show you exactly why we believe an early April 2021 peak may be setting up in the US/global markets and why you need to prepare for this now. We believe the remainder of the bullish price trend may continue to push higher, scaling very close to the CYAN trendline on the chart below over the next 60+ days before starting to break lower as we near the end of March 2021. Let’s explore why we believe this is likely to happen.
W.D. Gann mastered price trends (angles/slope) and time in relation to predicting future price trends and peaks/troughs. Over the years, my team and I have done some research related to W.D. Gann’s theories and have come to a simple understanding of some of these concepts. In this article, we will review his primary theory that past price trends may help to predict future price peaks using angles/slopes and time factors.
Monthly SPY Chart Showing Key Price Trendline
After the bottom in 2009 at the peak of the Credit Crisis, a new upward price trend set up a very clear price slope by tracking the lows from 2009 through 2010. We’ve drawn a CYAN colored line across those lows on the Monthly SPY chart (below). As we follow this trend through the 2011 to 2020 price activity, you can see this trendline was breached in late 2011 – where this upward sloping trendline became a resistance level going forward. In 2015, price briefly touched this CYAN tr
We hope you enjoyed the brief holiday break… it seems Bitcoin has been busy while the markets have been resting! Bitcoin enthusiasts are adamant that the price rally has just started a parabolic move higher. From a technical standpoint, this current rally certainly appears to have gone parabolic. As any trader already understands, what goes up may eventually come crashing downward.
My research team and I believe failure at the current highs would represent a clear technical divergence pattern between price and the RSI indicator. Additionally, the current rally that started on December 20 consists of a $10,850 rally phase. The previous rally that took place from October 20 to December 2 consisted of a $9,200 rally phase. We believe this current rally phase from December 11 could be a Wave 5 rally (almost equal to the Wave 3 rally range). If our researchers are correct, this final rally phase could come crashing downward after reaching these peak