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 Monday, U.S. stocks closed in the green following a shortened session ahead of the July 4th holiday. The S&P 500 rose 5 points (+0.12%) to 4,455, the Nasdaq 100 climbed 29 points (+0.19%) to 15,208 and the Dow Jones Industrial Average increased 10 points (+0.03%) to 34,418.
The Automobiles & Components (+5.84%), Banks (+1.47%), and Transportation (+1.03%) sectors were the top performers during the trading session.
Tesla (TSLA), the electric-vehicle maker, rose 6.9% after reporting deliveries of 466,140 vehicles in the second quarter, above estimates. Apple (AAPL), the consumer electronics company, fell 0.78% as it cut Vision Pro headset targets on production issues, according to the Financial Times. Meanwhile, Coinbase Global (COIN), a cryptocurrency exchange platform, jumped 11.71% after crypto-related stocks edged higher as Bitcoin traded above 30,000 dollars.
On the U.S. economic data front, the ISM Manufacturing Purchasing Managers Index fell to 46, below 48.0 expected, while construction spending grew 0.9% on month in May, above 0.6% anticipated. Meanwhile, final readings of the S&P Global Manufacturing Purchasing Managers Index for June was released at 46.3, as expected.
The U.S. 10-year Treasury Yield gained 2 basis points to 3.857%.
European stocks were broadly lower. The Dax 40 fell 0.41%, the Cac 40 slipped 0.18% and the FTSE 100 was down 0.06%.
WTI Crude Future dropped 1.2% to $69.79.
Spot gold was little changed at $1,921.
Market Wrap: Forex
The U.S. dollar index was broadly flat at 102.95.
EUR/USD gained 4 pips to 1.0913 while GBP/USD dropped 11 pips to 1.2692. Later today, Germany's trade surplus is estimated at 19.1 billion euros in May.
USD/JPY increased 36 pips to 144.67 and USD/CHF added 8 pips to 0.8964.
AUD/USD gained 11 pips to 0.6675. The Reserve Bank of Australia is expected to raise its benchmark rate by 25 basis points to 4.35% later in the day.
USD/CAD edged up 8 pips to 1.325.
Bitcoin traded higher to $31,030.
Gold Intraday: bullish bias above 1915.00.
Pivot:
1915.00
Our preference:
Long positions above 1915.00 with targets at 1925.00 & 1930.00 in extension.
Alternative scenario:
Below 1915.00 look for further downside with 1910.00 & 1904.00 as targets.
Comment:
Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
Crude Oil (WTI) (Q3) Intraday: key resistance at 70.70.
Pivot:
70.70
Our preference:
Short positions below 70.70 with targets at 69.70 & 69.10 in extension.
Alternative scenario:
Above 70.70 look for further upside with 71.25 & 71.75 as targets.
Comment:
As long as the resistance at 70.70 is not surpassed, the risk of the break below 69.70 remains high.
EUR/USD Intraday: bullish bias above 1.0890.
Pivot:
1.0890
Our preference:
Long positions above 1.0890 with targets at 1.0930 & 1.0950 in extension.
Alternative scenario:
Below 1.0890 look for further downside with 1.0870 & 1.0855 as targets.
Comment:
The RSI advocates for further advance.
Bitcoin / Dollar intraday: the RSI is overbought
Our pivot point stands at 30920.
Our preference:
The upside prevails as long as 30920 is support.
Alternative scenario:
The downside breakout of 30920 would call for 30470 and 30200.
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 above its 20 and 50 period moving average (respectively at 30874 and 30744).
S&P 500 (CME) (M3) Intraday: bullish bias above 4452.00.
Pivot:
4452.00
Our preference:
Long positions above 4452.00 with targets at 4520.00 & 4550.00 in extension.
Alternative scenario:
Below 4452.00 look for further downside with 4430.00 & 4410.00 as targets.
Comment:
Intraday technical indicators lack momentum.
Tesla intraday: the RSI is overbought
Our pivot point stands at 273.4
Our preference:
The upside prevails as long as 273.4 is support.
Alternative scenario:
The downside breakout of 273.4 would call for 265.2 and 260.4.
Comment:
The RSI is above 70. It could mean either that prices are in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Tesla is above its 20 and 50 period moving average (respectively at 270.38 and 262.44).
*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.
