THE TIPSTER
THE US dollar has performed strongly against the Swiss franc during the past month as investors worried about the impact of the European debt crisis on Swiss trade. Now US dollar-Swiss franc is approaching a five-year downtrend resistance level at SFr1.1750. The question now is whether the dollar has gone far enough against the franc. With the Swiss franc benefiting from safe haven status, combined with the current strength in the dollar, any US dollar profit-taking could well be magnified from here. Look to sell on rallies towards SFr1.1700 for a move towards SFr1.1300. CMC Markets offers a spread on US dollar-Swiss franc of SFr1.1521-SFr1.1524.
BP has been in the news for all the wrong reasons lately and its share price continues to fall on the back of the Gulf of Mexico oil spill. Fears about the dividend, as well as President Obama’s undignified television rant against the company has not helped the share price. But BP stock is now close to five-year lows and could well be worth looking at as a long-term buy. Look to buy near five-year lows around 370p-380p. CMC Markets offers a spread on BP of 389.75p-390p.
The Dow Jones Industrial Average has dipped below the 10,000 level once again and usually this has proved a good buying opportunity. With a close stop-loss, a buy at these levels could prove lucrative. Capital Spreads quotes 9,933-9,935 for the Dow.
US computer chip maker National Semiconductor announces its quarterly results this afternoon and analysts are predicting revenues of $383.7m. The stock has recently been raised to outperform by Morgan Keenan, the US-based private client brokerage, on expectations of revenues beating current forecasts and the company providing a positive outlook. The shares have traded in a range between $13 and $16 for the past 11 months and are currently sitting just above $13. Spread Co offers a spread on National Semiconductor Corp of $13.21-$13.24.