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 were little changed. The Nasdaq 100 gained 18 points (+0.12%) to 14,964, while the S&P 500 dipped 1 point (-0.03%) to 4,377, and the Dow Jones Industrial Average was down 74 points (-0.22%) to 33,852.
U.S. Federal Reserve Chair Jerome Powell repeated his hawkish tone by pointing out that the central bank would likely raise interest rates further.
The U.S. 10-year Treasury yield dropped 5.2 basis points to 3.712%.
Automobiles & Components (+2.34%), energy (+1.02%), and media (+0.88%) stock sectors performed well, while utilities (-1.48%), food & beverage (-1.21%), and semiconductors (-1.16%) sectors lagged behind.
Apple (AAPL) rose 0.63% to a record close of $189.25.
Tesla (TSLA) climbed 2.41%, NetFlix (NFLX) advanced 3.06%, and Alphabet (GOOGL) was up 1.56%.
On the other hand, Nvidia (NVDA) fell 1.81% after the Wall Street Journal reported that U.S. authorities plans more curbs on exports of artificial intelligence (AI) chips to China.
Carnival (CCL) jumped 8.81% as Citi raised its target price of the cruise operator to $20.00.
Norwegian Cruise Line (NCLH) also climbed 7.55%.
General Mills (GIS) slid 5.17%. The packaged foods company posted lower-than-expected quarterly revenue.
European stocks closed higher. The DAX 40 rose 0.64%, the CAC 40 climbed 0.98%, and the FTSE 100 was up 0.52%.
U.S. WTI crude futures gained $1.40 to $69.14 a barrel. The U.S. Energy Department reported a reduction of 9.60 million barrels in crude-oil stockpiles (vs -1.76 million barrels expected).
Gold price dropped $4 to $1,909 an ounce.
Market Wrap: Forex
The U.S. dollar strengthened against other major currencies as Fed Chair Jerome Powell continued to show a aggressive stance on interest rates. The dollar index rose to 102.96.
EUR/USD fell 45 pips to 1.0916. Germany's GfK consumer confidence index fell to -25.4 for July (vs -23.0 expected). France's official consumer confidence index rose to 85 in June, the highest level in a year.
USD/JPY climbed to a fresh 7-month high of 144.61. Bank of Japan Governor Kazuo Ueda said the central bank is less confident over whether inflation would accelerate again after a period of moderation.
GBP/USD sank 111 pips to 1.2638, and AUD/USD dropped 85 pips to 0.6601.
USD/CHF added 31 pips to 0.8968, and USD/CAD was up 63 pips to 1.3255.
Bitcoin retreated nearly 2% to $30,100.
Gold Intraday: under pressure.
Pivot:
1917.00
Our preference:
Short positions below 1917.00 with targets at 1903.00 & 1896.00 in extension.
Alternative scenario:
Above 1917.00 look for further upside with 1922.00 & 1930.00 as targets.
Comment:
The immediate trend remains down but the momentum is weak.
Crude Oil (WTI) (Q3) Intraday: bullish bias above 68.40.
Pivot:
68.40
Our preference:
Long positions above 68.40 with targets at 70.15 & 70.90 in extension.
Alternative scenario:
Below 68.40 look for further downside with 67.70 & 67.05 as targets.
Comment:
The RSI is bullish and calls for further upside.
EUR/USD Intraday: under pressure.
Pivot:
1.0930
Our preference:
Short positions below 1.0930 with targets at 1.0900 & 1.0885 in extension.
Alternative scenario:
Above 1.0930 look for further upside with 1.0945 & 1.0960 as targets.
Comment:
The RSI calls for a new downleg.
Bitcoin / Dollar intraday: below its lower Bollinger band
Our pivot point stands at 30390.
Our preference:
The downside prevails as long as 30390 is resistance.
Alternative scenario:
The upside breakout of 30390, would call for 30820 and 31080.
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 is trading under both its 20 and 50 period moving average (respectively at 30251 and 30398). Finally, the Bitcoin / Dollar is trading below its lower Bollinger band (standing at 30023).
S&P 500 (CME) (M3) Intraday: further advance.
Pivot:
4399.00
Our preference:
Long positions above 4399.00 with targets at 4445.00 & 4460.00 in extension.
Alternative scenario:
Below 4399.00 look for further downside with 4385.00 & 4368.00 as targets.
Comment:
The RSI calls for a new upleg.
Tesla intraday: the upside prevails as long as 250.95 is support
Our pivot point stands at 250.95
Our preference:
The upside prevails as long as 250.95 is support
Alternative scenario:
Below 250.95, expect 245.39 and 242.09.
Comment:
The RSI is above its neutrality area at 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 253.59 and 251.58).
*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.
