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 in the green for the second time this week ahead of key inflation data. The S&P 500 rose 29 points (+0.67%) to 4,439, the Nasdaq 100 climbed 73 points (+0.49%) to 15,119 and the Dow Jones Industrial Average jumped 317 points (+0.93%) to 34,261.
The Energy (+2.2%), Banks (+1.53%), and Transportation (+1.41%) sectors were the top performers during the trading session.
Salesforce.com (CRM), a developer of business software, rose 3.93% as it will be increasing prices for various of its products and services in August. VMware (VMW), the cloud-computing company, gained 5.19% after the Financial Times reported that Broadcom's 61 billion dollars acquisition of the company will be approved by the European Union.
Meanwhile, Uber Technologies (UBER), the technology platform, advanced 3.69% following Bloomberg's report that CFO Nelson Chai is planning to leave the company. WD-40 Co (WDFC) soared 18.49% after reporting third-quarter EPS that topped expectations.
On the other hand, Eli Lilly (LLY), a developer and producer of pharmaceuticals, fell 3.04% as Prime Therapeutics reported that most patients taking weight-loss drugs stopped within a year, which could be linked to an increase in health care costs from the obesity treatments.
Also, Microsoft (MSFT), the software development company, gained 0.19% after winning its case against the FTC to proceed with the purchase of Activision Blizzard ahead of the July 18 deadline. Activision Blizzard (ATVI), one of the world's largest video game publishers, surged 10.02% following the news.
On the U.S. economic data front, the NFIB Business Optimism Index climbed to 91.0 in June, above 89.8 forecasted. Later today, Consumer Price Index growth is expected to ease to 3.2% on year in June.
The U.S. 10-year Treasury Yield slid 1.8 basis points to 3.976%.
European stocks were higher for a second consecutive session. The Dax 40 rose 0.75%, the Cac 40 climbed 1.07% and the FTSE 100 gained 0.12%.
WTI Crude Futures was up $1.84 to $74.83. The American Petroleum Institute reported that U.S. crude oil inventories increased 3.03 million barrels in the week ending July 7, above 0.2 million barrels expected.
Spot Gold was up $6 to $1,932.
Market Wrap: Forex
The U.S. dollar index fell 0.3% to 101.67, investors would watch closely the U.S. consumer inflation for June due later in the day.
EUR/USD gained 4 pips to 1.1005. Germany's ZEW Economic Sentiment Index was released at -14.7 in July, vs -13.0 expected, while the Current Conditions Sub Index was released at -59.5, vs -60.0 expected. Also, final readings of the Consumer Price Index was up 6.4% on year in June as expected.
GBP/USD rose 70 pips to a 15-month high at 1.2931. Official data showed that U.K. Average Weekly Earnings growth for the March-May period accelerated to 6.9% on year, above 6.7% estimated, while the Jobless Rate edged up to 4.0%, vs 3.9% expected.
USD/JPY dropped 95 pips to 140.36 and USD/CHF lost 57 pips to 0.8796.
Commodity-linked currencies were broadly steady. AUD/USD added 11 pips to 0.6686 and USD/CAD fell 46 pips to 1.3234, while NZD/USD was flat at 0.6209. Later today, the Reserve Bank of New Zealand is expected to keep its official cash rate unchanged at 5.50%, while the Bank of Canada is anticipated to raise its benchmark rate by 25 basis points to 5.00%.
Bitcoin traded lower to $30,616.
Gold Intraday: towards 1945.00.
Pivot:
1926.00
Our preference:
Long positions above 1926.00 with targets at 1938.00 & 1945.00 in extension.
Alternative scenario:
Below 1926.00 look for further downside with 1919.00 & 1913.00 as targets.
Comment:
The RSI is bullish and calls for further upside.
Crude Oil (WTI) (Q3) Intraday: further upside.
Pivot:
74.00
Our preference:
Long positions above 74.00 with targets at 75.35 & 76.10 in extension.
Alternative scenario:
Below 74.00 look for further downside with 73.30 & 72.70 as targets.
Comment:
The RSI is bullish and calls for further upside.
EUR/USD Intraday: bullish bias above 1.0990.
Pivot:
1.0990
Our preference:
Long positions above 1.0990 with targets at 1.1025 & 1.1040 in extension.
Alternative scenario:
Below 1.0990 look for further downside with 1.0975 & 1.0960 as targets.
Comment:
The RSI advocates for further advance.
Bitcoin / Dollar intraday: the upside prevails as long as 30220 is support
Our pivot point stands at 30220.
Our preference:
The upside prevails as long as 30220 is support
Alternative scenario:
The downside breakout of 30220 would call for 29810 and 29560.
Comment:
The RSI is above 50. The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 30501 and 30510).
S&P 500 (CME) (M3) Intraday: expect 4508.00.
Pivot:
4442.00
Our preference:
Long positions above 4442.00 with targets at 4490.00 & 4508.00 in extension.
Alternative scenario:
Below 4442.00 look for further downside with 4412.00 & 4385.00 as targets.
Comment:
The RSI is bullish and calls for further upside.
Tesla intraday: short term rebound towards 281
Our pivot point stands at 262.2
Our preference:
Short term rebound towards 281
Alternative scenario:
The downside breakout of 262.2 would call for 255.2 and 251.2.
Comment:
The RSI is below its neutrality area at 50. The MACD is above its signal line and negative. The configuration is mixed. Tesla stands below its 20 and 50 period moving average (respectively at 268.68 and 273.01).
*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.
