Here are today's directional views from the global research desks of Trading Central! These are starting points for your own research to identify opportunities that make sense for you. Like what you see? Feel free to forward this to a friend!
Market Wrap: Stocks, Bonds, Commodities
On Friday, U.S. stocks paused their recent rally. The Dow Jones Industrial Average fell 108 points (-0.32%) to 34,299, the S&P 500 dropped 16 points (-0.37%) to 4,409, and the Nasdaq 100 slid 101 points (-0.67%) to 15,083.
Software & services (-1.24%), media (-1.10%), and food & staples retailing (-1.05%) stock sectors led the market lower, while automobiles (+1.48%) and household & personal products (+0.94%) stock sectors posted gains.
Tesla (TSLA) gained 1.81%, while Microsoft (MSFT) fell 1.66%, Alphabet (GOOGL) dropped 1.25%, and Apple (AAPL) was down 0.59%.
Amazon.com (AMZN) fell 1.27%, while iRobot (IRBT), the maker of robot vacuum "Roomba", surged 21.20%. The U.K. Competition and Markets Authority (CMA) approved Amazon.com's planned $1.7 billion acquisition of iRobot.
Intel (INTC) rose 1.54%. The chip maker announced a $4.6 billion investment plan to build a semiconductor plant in Poland.
Micron Technology (MU) dropped 1.69%. The chip maker said it would invest over $600 million in upgrading its chip packaging and testing equipment at its factory in the Chinese city of Xi'an. And Bloomberg reported that the company would invest $1 billion for a semiconductor packaging factory in India.
Nvidia (NVDA) edged up 0.09%, while Advanced Micro Devices (AMD) fell 3.35%. Wall Street firm Morgan Stanley said Nvidia has replaced Advanced Micro Devices as its top pick in the U.S. semiconductor sector.
Regarding U.S. economic data. The University of Michigan consumer sentiment index rose to 63.9 in June (vs 60.8 expected, 59.2 in May).
The U.S. 10-year Treasury yield climbed 4.9 basis points to 3.765%.
European stocks closed higher. The DAX 40 rose 0.41%, the CAC 40 gained 1.34%, and the FTSE 100 was up 0.19%.
U.S. WTI crude futures increased $1.10 to $71.68 a barrel.
Gold price was little changed at $1,956 an ounce.
U.S. markets will be closed on Monday for the Juneteenth holiday.
Market Wrap: Forex
USD/JPY jumped 157 pips (+1.12%) to 141.86, a six-month high. The Bank of Japan kept its key interest rate unchanged at negative level of -0.10%. The central bank said core inflation rate is likely to decelerate towards the middle of fiscal 2023.
EUR/JPY hit a fresh 15-year high of 155.26.
GBP/USD gained 41 pips to 1.2825. The Bank of England is expected to hike its key interest rate by 25 basis points to 4.75% on Thursday.
AUD/USD dipped 9 pips to 0.6876.
USD/CHF rose 24 pips to 0.8942, while USD/CAD touched a 9-month low of 1.3177 before closing at 1.3193.
Over the weekend, Bitcoin climbed back to level around $26,700.
Gold Intraday: intraday support around 1951.00.
Pivot:
1951.00
Our preference:
Long positions above 1951.00 with targets at 1966.00 & 1973.00 in extension.
Alternative scenario:
Below 1951.00 look for further downside with 1945.00 & 1939.00 as targets.
Comment:
The immediate trend remains up but the momentum is weak.
Crude Oil (WTI) (N3) Intraday: bullish bias above 70.70.
Pivot:
70.70
Our preference:
Long positions above 70.70 with targets at 72.00 & 72.70 in extension.
Alternative scenario:
Below 70.70 look for further downside with 70.20 & 69.70 as targets.
Comment:
Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
EUR/USD Intraday: bullish bias above 1.0915.
Pivot:
1.0915
Our preference:
Long positions above 1.0915 with targets at 1.0970 & 1.0985 in extension.
Alternative scenario:
Below 1.0915 look for further downside with 1.0900 & 1.0885 as targets.
Comment:
A support base at 1.0915 has formed and has allowed for a temporary stabilisation.
Bitcoin / Dollar intraday: the downside prevails as long as 26650 is resistance
Our pivot point stands at 26650.
Our preference:
The downside prevails as long as 26650 is resistance.
Alternative scenario:
Above 26650, look for 27020 and 27240.
Comment:
The RSI is below its neutrality area at 50. The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 26510 and 26513).
S&P 500 (CME) (M3) Intraday: the downside prevails.
Pivot:
4485.00
Our preference:
Short positions below 4485.00 with targets at 4440.00 & 4420.00 in extension.
Alternative scenario:
Above 4485.00 look for further upside with 4505.00 & 4530.00 as targets.
Comment:
The RSI is below its neutrality area at 50%
Tesla intraday: the upside prevails as long as 256.8 is support
Our pivot point stands at 256.8
Our preference:
The upside prevails as long as 256.8 is support.
Alternative scenario:
The downside breakout of 256.8 would call for 253.8 and 251.8.
Comment:
The RSI is above 50. The MACD is above its signal line and positive. The configuration is positive. Tesla is trading above both its 20 and 50 period moving average (respectively at 258.99 and 258.05).
*Disclaimer: The content of this article is for learning purposes only and does not represent the official position of VSTAR, nor can it be used as investment advice.
