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 Wednesday, major U.S. stock indexes closed lower, dragged by technology shares. The Nasdaq 100 fell 202 points (-1.35%) to 14,867, the S&P 500 dropped 23 points (-0.52%) to 4,365, and the Dow Jones Industrial Average was down 102 points (-0.30%) to 33,951.
While giving a testimony before the U.S. House of Representatives, Federal Reserve Chair Jerome Powell hinted at the likelihood of further interest-rate hikes for bringing inflation back down the central bank's 2% target. This dampened market sentiment.
The U.S. 10-year Treasury yield was little changed at 3.723%.
Automobiles (-4.72%), semiconductors (-2.37%), and media (-1.51%) stock sectors lost the most in the session.
Tesla (TSLA) slid 5.46% to $259.46, giving back all the gain made in the prior session and some.
Intel (INTC) fell 6.00%. The chip maker said it agreed to sell its minority stake in its IMS Nanofabrication business to Bain Capital for about $4.3 billion.
Advanced Micro Devices (AMD) dropped 5.73%, and Nvidia (NVDA) declined 1.74%.
Amazon.com (AMZN) dipped 0.76%. The U.S. Federal Trade Commission has sued the world's largest online retailer, accusing it of misleading customers into signing up for its Prime service and making it difficult to cancel.
FedEx (FDX) declined 2.51%. The company provided a lower-than-expected full-year earnings guidance.
Dollar Tree (DLTR) rose 4.56% after the discount-store operator's management revealed growth strategies.
European stocks also closed lower. The DAX 40 fell 0.55%, the CAC 40 dropped 0.46%, and the FTSE 100 was down 0.13%.
U.S. WTI crude futures rose $1.40 to $72.57 a barrel.
Gold price dropped $3 to $1,932 an ounce.
Market Wrap: Forex
The U.S. dollar weakened against other major currencies. The dollar index declined to 102.06.
EUR/USD gained 72 pips to 1.099.
USD/JPY climbed 38 pips to 141.85.
GBP/USD was little changed at 1.2767. U.K. data showed that the inflation rate remained unchanged at 8.7% on year in May (vs 8.5% expected). Later today, the Bank of England is expected to raise its key interest rate by 25 basis points to 4.75%.
AUD/USD added 12 pips to 0.6797.
USD/CHF fell 51 pips to 0.8928, and USD/CAD dropped 71 pips to 1.3164.
Bitcoin surged over 6% up to $30,800, the highest level since April.
Gold Intraday: key resistance at 1939.00.
Pivot:
1939.00
Our preference:
Short positions below 1939.00 with targets at 1928.00 & 1919.00 in extension.
Alternative scenario:
Above 1939.00 look for further upside with 1945.00 & 1950.00 as targets.
Comment:
Technically the RSI is below its neutrality area at 50.
Crude Oil (WTI) (N3) Intraday: 73.80 expected.
Pivot:
71.70
Our preference:
Long positions above 71.70 with targets at 73.10 & 73.80 in extension.
Alternative scenario:
Below 71.70 look for further downside with 71.25 & 70.80 as targets.
Comment:
The RSI shows upside momentum.
EUR/USD Intraday: further advance.
Pivot:
1.0950
Our preference:
Long positions above 1.0950 with targets at 1.1020 & 1.1040 in extension.
Alternative scenario:
Below 1.0950 look for further downside with 1.0930 & 1.0910 as targets.
Comment:
The RSI is bullish and calls for further upside.
Bitcoin / Dollar intraday: as long as 29670 is support look for 30700
Our pivot point stands at 29670.
Our preference:
As long as 29670 is support look for 30700
Alternative scenario:
The downside breakout of 29670 would call for 29270 and 29040.
Comment:
The RSI is above its neutrality area at 50. The MACD is positive and below its signal line. The price could retrace. Moreover, the price is trading under its 20 period moving average (30028) but above its 50 period moving average (29319).
S&P 500 (CME) (M3) Intraday: key resistance at 4427.00.
Pivot:
4427.00
Our preference:
Short positions below 4427.00 with targets at 4393.00 & 4383.00 in extension.
Alternative scenario:
Above 4427.00 look for further upside with 4447.00 & 4460.00 as targets.
Comment:
Technically the RSI is below its neutrality area at 50.
Tesla intraday: eye 256.4
Our pivot point stands at 266.8
Our preference:
Eye 256.4
Alternative scenario:
Above 266.8, look for 270 and 271.8.
Comment:
The RSI is below its neutrality area at 50. The MACD is below its signal line and negative. The configuration is negative. Tesla is below its 20 period moving average (266.79) but above its 50 period moving average (262.77).
*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.
