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 Tuesday, U.S. stocks closed lower. The Dow Jones Industrial Average fell 245 points (-0.72%) to 34,053, the S&P 500 dropped 20 points (-0.47%) to 4,388, and the Nasdaq 100 was down 13 points (-0.09%) to 15,070.
U.S. data showed that the number of housing starts jumped 21.7% on month to an annualized rate of 1.63 million units in May, the highest level since April 2022.
U.S. Federal Reserve Chair Jerome Powell will give a testimony before the House of Representatives later today.
The U.S. 10-year Treasury yield retreated 4.4 basis points to 3.717%.
Energy (-2.29%), telecoms services (-1.33%), and materials (-1.26%) stock sectors lost the most in the session.
SolarEdge Technologies (SEDG), a solar-power solution provider, slid 7.71% posting the biggest loss among S&P 500 constituents.
Alibaba Group (BABA) fell 4.53%. The Chinese e-commerce giant announced a surprise shakeup appointing a new chairman and a new chief executive.
JD.com (JD) lost 6.73%.
On the other hand, Tesla (TSLA) gained 5.34%. Rival electric-vehicle maker Rivian Automotive (RIVN) announced plans to use Tesla's Supercharger standard. Rivian's share price rose 5.51%.
Nvidia (NVDA) rose 2.61% to $438.08, a fresh record close.
PayPal (PYPL) climbed 3.70% after investment firm KKR & Co agreed to buy up to $44 billion worth of the online payment firm's buy-now-pay-later loans.
Thanks to rising Bitcoin price, crypto-related stocks outperformed the market. Marathon Digital (MARA) surged 17.43%, Riot Platforms (RIOT) jumped 8.17%, MicroStrategy (MSTR) rose 6.82%, and Coinbase Global (COIN) was up 2.70%.
European stocks also closed lower. The DAX fell 0.55%, the CAC 40 dropped 0.27%, and the FTSE 100 was down 0.25%.
U.S. WTI crude futures declined $1.10 to $70.85 a barrel.
Gold price was little changed at $1,936 an ounce.
Market Wrap: Forex
The U.S. dollar index was flat at 102.53.
EUR/USD dipped 5 pips to 1.0916. Germany's data showed that producer-price growth slowed further to 1.0% on year in May (vs 1.8% expected).
USD/JPY ran up to 142.25, the highest level since November 2022, before coming down to 141.45. Seeing the yen's persistent weakness, Japanese Finance Minister Shunichi Suzuki warned of taking forex-policy action in case it is necessary.
GBP/USD fell 29 pips to 1.2763, and AUD/USD dropped 64 pips to 0.6787.
USD/CHF jumped 22 pips to 0.8979, and the USD/CAD gained 24 pips to 1.3234.
Bitcoin bounced over 5% to $28,300. EDX Markets, a new crypto exchange backed by Fidelity, Charles Schwab and Citadel Securities, has launched its operations in the U.S.
Gold Intraday: key resistance at 1945.00.
Pivot:
1945.00
Our preference:
Short positions below 1945.00 with targets at 1930.00 & 1925.00 in extension.
Alternative scenario:
Above 1945.00 look for further upside with 1950.00 & 1956.00 as targets.
Comment:
As long as the resistance at 1945.00 is not surpassed, the risk of the break below 1930.00 remains high.
Crude Oil (WTI) (N3) Intraday: bullish bias above 70.35.
Pivot:
70.35
Our preference:
Long positions above 70.35 with targets at 71.40 & 71.75 in extension.
Alternative scenario:
Below 70.35 look for further downside with 69.75 & 68.90 as targets.
Comment:
The RSI is mixed to bullish.
EUR/USD Intraday: bullish bias above 1.0890.
Pivot:
1.0890
Our preference:
Long positions above 1.0890 with targets at 1.0940 & 1.0955 in extension.
Alternative scenario:
Below 1.0890 look for further downside with 1.0875 & 1.0860 as targets.
Comment:
The RSI calls for a bounce.
Bitcoin / Dollar intraday: the RSI is overbought
Our pivot point stands at 27590.
Our preference:
The upside prevails as long as 27590 is support.
Alternative scenario:
Below 27590, expect 27220 and 27000.
Comment:
The RSI is trading above 70. This could mean that either the price is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 27188 and 26970).
S&P 500 (CME) (M3) Intraday: key resistance at 4447.00.
Pivot:
4447.00
Our preference:
Short positions below 4447.00 with targets at 4410.00 & 4393.00 in extension.
Alternative scenario:
Above 4447.00 look for further upside with 4460.00 & 4475.00 as targets.
Comment:
The RSI is mixed with a bearish bias.
Tesla intraday: the RSI is overbought
Our pivot point stands at 267.25
Our preference:
The upside prevails as long as 267.25 is support.
Alternative scenario:
Below 267.25, expect 263.7 and 261.59.
Comment:
The RSI is trading above 70. This could mean that either prices are in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Tesla is above its 20 and 50 period moving average (respectively at 265.12 and 260.46).
*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.
