The next full moon will take place on Sept. 20 and after the sun sets, Venus will be the brightest planet shining 7 degrees above the west-southwest horizon. Jupiter will be the second most visible planet, appearing 24 degrees above the horizon in the southeast. Could the celestial event affect Walt Disney Co (NYSE: DIS) and Bank of America Corporation (NYSE: (BA)C) stocks?
Just as fundamental analysis is used by some traders and technical analysis by others, there is another group of traders who use astrological analysis to form their investment decisions. There are rumors Walt Disney himself used astrology to guide his timing when launching multi-million-dollar projects.
How The Celestial Event Could Affect Disney and Bank of America: Financial astrology is based on the belief astrology and the stock market are co-related. Astrological traders look back at a stock’s chart and compare price movements with celestial events to predict how a security may react to the same astrological event in the future. There are many events at play, including how these traders believe different astrological events affect their trading psychology.
- The Moon: Lunar traders believe stocks perform better during the trading days around a new moon and are weakest during the days closest to a full moon. Lunar traders also take into account the moon’s distance, which varies by 10% as the moon orbits earth on an elliptical plane.
- Planets: Astrological traders believe each planet is connected to different sectors of the market. Venus represents both the media and sugar sectors while Jupiter portrays the banking and financial sectors.
When the moon is at both its closest and furthest points from earth traders look for a reversal in trend. For the month of September the moon was at its closest approach (Perigee) on Sept. 11 with a distance of 228,951 miles from the NYSE and will be at its furthest approach (Apogee) on Sept. 26 when it is 251,432 miles from New York.
Moreover, Venus is perceived as the main financial planet and signifies harmony and agreement while Jupiter is related to prosperity and increased energy, which astrological traders believe is linked to rising interest rates.
The Disney Chart: For astrological traders, Disney’s stock is not set to reverse trend because the moon is not near perigee or apogee. With Venus being the most visible planet in the sky Disney’s stock may receive bullish momentum through the force of the planet.
For technical traders, Disney’s chart is in a clear uptrend. The stock needs to reach a higher high above $187.58 for the trend to continue. On Friday Disney had higher than average trading volume as 10.03 million shares exchanged hands compared to the 10-day average of 6.77 million shares. Increased volume indicates high interest and bullish momentum.
The Bank of America Chart: Astrological traders won’t be looking for a reversal in trend due to the moon’s distance being at average. The brightness of Jupiter could boost the stock, however.
Technical traders will be watching for Bank of America’s stock to break up above a descending trendline that has been holding the stock down since Aug. 26. Bank of America also had high volume on Friday with 92.75 million shares changing hands compared to the 10-day average of 51.54. Bank of America needs to hold above a support level near the $40 mark or it could fall down to fill the gap between $39.05 and $39.45.
© 2021 Fintech Zoom.com. Fintech Zoom does not provide investment advice. All rights reserved.
See also Chase Online.
How to Send Money Online.
Partner Banking News.