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 higher. The Dow Jones Industrial Average rose 183 points (+0.52%) to 35,411, up 11 consecutive trading days, the longest winning streak in six years.
The S&P 500 rose 18 points (+0.40%) to 4,554; the Nasdaq 100 gained 22 points (+0.14%) to 15,448.
Stock sectors such as automobiles (+3.01%), banks (+1.77%) and energy (+1.66%) outperformed the broader market.
Tesla Tesla (TSLA) rallied 3.48%. Media reports say the electric car maker will discuss plans with the Indian government to build a new factory in the country.
AMC Entertainment (AMC) jumped 32.95% after a U.S. court ruled against the proposed conversion of AMC Entertainment Preferred Equity Units (APE) into AMC common stock.
Microsoft Microsoft (MSFT) closed up 0.39%, Google Alphabet (GOOGL) gained 1.26%, while Meta Platforms (META) fell 0.90%. The three major tech companies will report quarterly results this week.
Spotify Technology (SPOT) fell 4.65%. The music streaming service provider raised the cost of its ad-free premium subscription.
The yield on the 10-year U.S. Treasury note rose 4 basis points to 3.875%.
In U.S. economic data, the Chicago Fed National Economic Activity Index fell to -0.32 points in June (vs. +0.20 points expected).
The S&P Global S&P Global U.S. Manufacturing Purchasing Managers' Index improved to 49.0 points in July (vs. 46.0 expected), but remained a contractionary reading.
In Europe, the DAX 40 edged up 0.08% and the FTSE 100 gained 0.19%, while the CAC 40 edged down 0.07%.
U.S. WTI crude oil futures rose $1.80 to $78.90 per barrel.
Gold prices retreated by $7 to $1,954 per ounce.
Market Wrap: Forex
The U.S. dollar strengthened further against other major currencies ahead of the U.S. Federal Reserve's interest rate decision announcement on Wednesday. The dollar index rose to 101.39 points.
EUR/USD fell 61 pips to 1.1063. In Europe, the eurozone's HCOB Manufacturing Purchasing Managers' Index for July came in at 42.7 pips (vs. 43.5 pips expected), with Germany at 38.8 pips (vs. 40.0 pips expected) and France at 44.5 pips (vs. 45.5 pips expected).
GBP/USD fell 37 pips to 1.2817. The UK's S&P Global Manufacturing Purchasing Managers' Index for July fell to 45.0 pips (vs. 46.0 pips expected).
USD/JPY fell 22 pips to 141.51. AUD/USD gained 8 pips to 141.51.
AUD/USD rose 8 pips to 0.6737.
USD/CHF rose 42 pips to 0.8700.
USD/CAD fell 53 pips to 1.3171. Data from Canada showed June wholesale sales contracted 4.4% month-on-month (vs. -1.0% expected).
While investors are waiting to see what tone the Federal Reserve will take after deciding on interest rates, the cryptocurrency market saw a broad sell-off. Bitcoin sank 3% to $29,180.
Gold Intraday: under pressure.
Pivot:
1963.00
Our preference:
Short positions below 1963.00 with targets at 1946.00 & 1940.00 in extension.
Alternative scenario:
Above 1963.00 look for further upside with 1968.00 & 1973.00 as targets.
Comment:
The RSI is mixed and calls for caution.
Crude Oil (WTI) (Q3) Intraday: bullish bias above 77.80.
Pivot:
77.80
Our preference:
Long positions above 77.80 with targets at 80.00 & 80.50 in extension.
Alternative scenario:
Below 77.80 look for further downside with 77.25 & 76.50 as targets.
Comment:
Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
EUR/USD Intraday: key resistance at 1.1090.
Pivot:
1.1090
Our preference:
Short positions below 1.1090 with targets at 1.1055 & 1.1040 in extension.
Alternative scenario:
Above 1.1090 look for further upside with 1.1105 & 1.1120 as targets.
Comment:
As long as the resistance at 1.1090 is not surpassed, the risk of the break below 1.1055 remains high.
Bitcoin / Dollar intraday: rebound towards 29880
Our pivot point stands at 28790.
Our preference:
Rebound towards 29880
Alternative scenario:
Below 28790, expect 28380 and 28140.
Comment:
The RSI is below 50. The MACD is negative and above its signal line. The configuration is mixed. Moreover, the price stands below its 20 and 50 period moving average (respectively at 29152 and 29591).
S&P 500 (CME) (U3) Intraday: bullish bias above 4576.00.
Pivot:
4576.00
Our preference:
Long positions above 4576.00 with targets at 4600.00 & 4610.00 in extension.
Alternative scenario:
Below 4576.00 look for further downside with 4568.00 & 4557.00 as targets.
Comment:
The RSI is above its neutrality area at 50%.
Tesla intraday: short term technical rebound towards 275.4 before a new drop
Our pivot point stands at 275.4
Our preference:
Short term technical rebound towards 275.4 before a new drop
Alternative scenario:
Above 275.4, look for 282.8 and 287.4.
Comment:
The RSI is above 50. The MACD is above its signal line and positive. The configuration is positive. Tesla stands above its 20 period moving average (264.51) but below its 50 period moving average (270.68).
*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.
