Trade Apple and Tesla at zero commission on Phillip MetaTrader 5

25 Jun 2021

By Stephen Ong, Senior Account Executive, Phillip Futures

Shares CFD allows you to trade in both bull and bear markets, and is a good tool to use in times of market volatility. Tradeable from as small as one share CFD on Phillip MetaTrader 5, traders and investors can gain easy access to various sectors.

This week, let’s take a look at the technology sector for some shares CFD that might be worth considering – Apple (AAPL), and Tesla (TSLA):

Apple stock broke out of triangle formation, aiming for record highs

Apple shares advance to accelerate toward new price highs and proceed in the footsteps of other social media giants in setting record highs in stock prices again on Thursday 24th JUN. As AAPL stock CFD accumulates on its previous gains from earlier this week, last night high of $134.58 acts as an immediate resistance and a price breakout above $134.58 level should augment for a test of $137 minor resistance level. Currently, Apple stock prices is taking a breather but the upswing trend remain intact on the hourly chart.

AAPL Stock Technical Analysis

Apple stock price continue its firm price advance after a triangle breakout formation was formed. Last night’s price momentum has stagnated with little movement, as it confirms with AAPL stocks entering its consolidation state in the price up swing. The uptrend is still intact even as traders decides to take some gains off the table, as long as Tuesday’s low holds. Wednesday’s high was broken last night, and a price move above $135 may see a test of $137 resistance level. A successful break of $135 and $137 resistance zone should see a price momentum acceleration to test $145 highs.

Tesla shares CFD broke $637 resistance region as upswing continues

TSLA broke out of the $637 strong resistance zone and continued on its steady upswing in its stock prices. TSLA had jumped over 24% to reach the highest levels on 24h JUN from the low price of $547.96 on 19th May. This price surge was caused by a technical breakout through the key resistance region accompanied with the latest update that Tesla had launched its first charging station in China for EVs with an energy storage function; triggered buyers to accumulate on Tesla shares.

TSLA Stock Technical Analysis

Thursday’s upswing in stock price continued as TSLA has been making a slow but steady progress up trend. Critically, 20-day exponential moving average is now acting as a support zone for a possible scenario of higher TSLA price levels eyeing the $717 resistance level on the hourly chart. The 100-day exponential moving average is also holding steady providing further support for a rising TSLA stock prices on the hourly chart.

Currently, the short-term trading bias remains to some extent on the upside. Traders are waiting for a better entry signal after yesterday’s rally and for the continuation of bullish price momentum. For traders who had already purchased TSLA, they should keep monitoring on the 20-day exponential moving average, which is steadily pointing to a higher upside aiming for the $717 resistance level on the hourly chart. Technical momentum oscillators Relative Strength Index (RSI) and Stochastic remained in the overbought zone confirming the bullish price action.

Stephen Ong is a Senior Account Executive with Phillip Futures. With over 20 years of experience in the CFD, Forex, and Futures markets, he offers actionable financial insights on multiple asset classes and how best to implement a successful trading plan on market view.

Click here for a free coaching session with Stephen

An Exchange Traded Fund (ETF) is a marketable security that is formed to track nearly anything, ranging from a specific index, sector, commodity, or increasingly, theme. They are most commonly used to track a basket of stocks, and can typically be accessed through the same channels as regular stocks. ETFs are typically separated into passively-managed ETFs that simply mirror the security they are tracking (e.g. the STI), and actively managed ones that attempt to deliver higher returns or specific investment objectives, often with a pre-specified theme in mind (e.g. ARK Invest’s Innovation ETF).

Why should I trade in ETF CFDs?

ETFs have been growing in popularity over the years. 2020 was the best year for ETFs yet, with global equity ETFs seeing more than $1T in inflows within a 12-month period. Using CFDs to gain exposure to ETFs allows for greater capital efficiency because only a portion of the contract value is required as margin to establish a position.
ETFs are particularly popular with investors seeking a relatively hassle-free investing experience, while desiring exposure to a range of specific and relatively understandable securities. Trading ETF CFDs brings greater convenience by eliminating the need for traders to hold multiple currencies in order to access global ETFs.
An investor wanting exposure to the post-pandemic economic recovery could open a position in the well-known SPDR S&P 500 ETF (SPY), which tracks the performance of the S&P 500. Another investor that may be convinced of the future importance of Environmental, Social and Governance concerns (ESG) may find the increasing selection of ESG-themed ETFs that track a basket of high ESG-rating companies to be a good investment, rather than cherry-picking individual equities by hand. ETF CFDs can act as a powerful tool for traders can profit from both directions of the market by taking on long or short positions.

A look at two ETF CFDs we offer:

1) Has the ARKK been sunk?

ARK Innovation ETF (ARKK) ARKK is an actively managed ETF by ARK Invest that invests in a range of companies based on their innovative and industry-disrupting potential. ARKK’s largest holdings are in companies such as Tesla, Square, and Zoom. ARKK is down around -33% from peaking on 12^th Feb and is currently in the red for the year to date as the market experiences a risk-off outflow of funds. Superstar fund manager Cathie Wood has however been consistently doubling down on her bets, buying even more shares in growth stocks that are going through their own tumultuous periods such as DraftKings, Peloton, Teladoc, and Tesla. In her view, ARKK is playing the long game, and remains steadfastly convinced in the long-term prospects of these growth stocks beyond this current bout of volatility. Similarly on outflows, investors are still betting big on ARKK as ARK Invest has only lost about $1.2B in assets this year across all its six funds, compared to seeing an inflow of $15.1B during the same period. Recently, investors have been nervously eyeing ARKK’s basket of tech stocks as their future earnings potential remain vulnerable to erosion through high inflation – the dominant concern of the market in recent weeks. As commodities – the major contributor to the recent heightened inflation fears – drops sharply from record highs, are investor concerns over hyperinflation overblown?

2) Searching for exposure to Asian equities?

iShares MSCI Asia ex Japan ETF (AAXJ) The AAXJ is currently trading -10.6% adrift of all-time highs seen in February, giving up gains in tandem with an Asia-wide equity sell-off at the time. Given that slightly over 40% of the ETF’s holdings are based in China, the ongoing tumult seen in Chinese equities currently have carried over nearly perfectly in the AAXJ, as Chinese investors take a breather after the stellar gains made over the past year. Looking ahead, Asia – and particularly China, is steaming ahead with its economic recovery. China is widely expected to be one of the best-performing major economies this year, providing a major boost to the outlook for corporate earnings. As the rest of Asia and the world gradually opens up their own economies, AAXJ is likely to again benefit from strong Asian outperformance amidst a strengthening trade outlook.

CFD is available for trading on Phillip MetaTrader 5 (MT5).

Features of trading CFD:

Trade in both the bull and the bear markets
The ability to enter a long and/or short position allow traders to take advantage of both rising and falling markets.
Smaller barrier to entry
Flexible and smaller contract sizes. This means that traders will be able to enter into a contract with a modest amount of capital.
No expiration date or risk of delivery
Unlike futures which commonly have a fixed expiration date, CFD allows traders to perpetually hold the position(s). CFD is cash settled, no need to worry about the delivery of the underlying asset.

Benefits of using Phillip MT5:

Trade at zero commission on a dynamic platform that offers low spreads. Integrated with Autochartist and Trading Central Indicators, and available on mobile, web and desktop app, you will never miss a trading opportunity with Phillip MT5.

Register for a FREE 30-day Phillip MetaTrader 5 Demo Account

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