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, U.S. stocks closed higher as the inflation rate eased further to its lowest level in more two years. The Nasdaq 100 led all indices, climbing 188 points (+1.24%) to 15,307, while the S&P 500 rose 33 points (+0.75%) to 4,472. Meanwhile, the Dow Jones Industrial Average added 86 points (+0.25%) to 34,347.
The Semiconductors & Semiconductor Equipment (+2.37%) and Media (+1.72%) sectors were the top performers, while shares in the Health Care Equipment & Services (-0.89%) and Insurance (-0.48%) sectors underperformed the most.
Meta Platforms (META), a social technology company, rose 3.7% after the stock's price target was increased to $350 from $290 at Deutsche Bank. Nvidia (NVDA), a leading designer of graphics processors, rose 3.53% on Financial Times' report that it is in negotiations with Arm to become a reference investor in its planned IPO.
Meanwhile, Coty (COTY), the global beauty company, fell 3.46% after the Wall Street Journal reported that Kim Kardashian is in talks to buy back the minority stake of her beauty company, SKKN by Kim, that she had sold to Coty three years ago.
On the other hand, Jefferies Financial Group (JEF) rose 4.88% as it was upgraded to "equal-weight" from "underweight" at Morgan Stanley. DraftKings (DKNG), the sports betting company, gained 5.28% after it was upgraded to "buy" from "neutral" at Bank of America. Oppositely, Cisco Systems (CSCO) fell 2.65% after it was downgraded to "neutral" from "buy" at Bank of America.
On the U.S. economic data front, the consumer price index growth eased to 3.0% year over year in June, the lowest level since March 2021, against 3.2% expected and down from 4.0% reported in May.
The U.S. 10-year Treasury Yield dropped 11.3 basis points to 3.857%.
European stocks also finished in positive territory, marking three strong consecutive sessions. The Dax 40 rose 1.47%, the Cac 40 gained 1.57% and the FTSE 100 was jumped 1.83%.
WTI Crude Futures $0.92 to $75.75. The U.S. Energy Information Administration reported that, for the week ended 7 July, crude oil inventories increased 5.95 million barrels, more than 0.48 million barrels expected.
Gold was up $26 to $1,958.
Market Wrap: Forex
The U.S. dollar index dropped 1.2% to 100.54 as U.S. inflation slowed more than expected in June.
EUR/USD jumped 125 pips to 1.1134, the highest level since March last year, and GBP/USD rose 58 pips to 1.2991, a fresh 15-month high.
USD/JPY plunged 190 pips to 138.46, posting a 5-day decline, and USD/CHF slid 122 pips to its lowest level in more than eight years at 0.8673.
AUD/USD advanced 105 pips to 0.6791, while USD/CAD fell 45 pips to 1.3186. The Bank of Canada raised its benchmark rate by 25 basis points to 5.00% as expected, the highest level in 22 years.
Bitcoin traded lower to $30,279.
Gold Intraday: the upside prevails.
Pivot:
1947.00
Our preference:
Long positions above 1947.00 with targets at 1965.00 & 1972.00 in extension.
Alternative scenario:
Below 1947.00 look for further downside with 1941.00 & 1933.00 as targets.
Comment:
The RSI is bullish and calls for further upside.
Crude Oil (WTI) (Q3) Intraday: the bias remains bullish.
Pivot:
75.15
Our preference:
Long positions above 75.15 with targets at 76.80 & 77.20 in extension.
Alternative scenario:
Below 75.15 look for further downside with 74.65 & 74.15 as targets.
Comment:
The RSI is mixed with a bullish bias.
EUR/USD Intraday: towards 1.1200.
Pivot:
1.1090
Our preference:
Long positions above 1.1090 with targets at 1.1170 & 1.1200 in extension.
Alternative scenario:
Below 1.1090 look for further downside with 1.1060 & 1.1040 as targets.
Comment:
The RSI is bullish and calls for further upside.
Bitcoin / Dollar intraday: below its lower Bollinger band
Our pivot point stands at 30710.
Our preference:
The downside prevails as long as 30710 is resistance.
Alternative scenario:
The upside breakout of 30710, would call for 31120 and 31360.
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 stands below its 20 and 50 period moving average (respectively at 30597 and 30614). Finally, the Bitcoin / Dollar has penetrated its lower Bollinger band (30295).
S&P 500 (CME) (M3) Intraday: 4530.00 in sight.
Pivot:
4485.00
Our preference:
Long positions above 4485.00 with targets at 4530.00 & 4545.00 in extension.
Alternative scenario:
Below 4485.00 look for further downside with 4470.00 & 4450.00 as targets.
Comment:
The next resistances are at 4530.00 and then at 4545.00.
Tesla intraday: the upside prevails as long as 266.6 is support
Our pivot point stands at 262.6
Our preference:
The upside prevails as long as 266.6 is support
Alternative scenario:
Below 266.6, expect 259.6 and 255.4.
Comment:
The RSI is above its neutrality area at 50. 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 271.37 and 271.75).
*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.
