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 positive territory, the S&P 500 rose 25 points (+0.58%) to 4,489, the Nasdaq 100 gained 177 points (+1.18%) to 15,205 and the Dow Jones Industrial Average added 26 points (+0.07%) to 35,307.
The Semiconductors & Semiconductor Equipment (+4.27%) and Media (+1.13%) sectors were the top performers, while the Automobiles & Components (-0.89%) and Utilities (-0.83%) sectors underperformed the most during the trading session.
United States Steel Corp (X), the steel producer, surged 36.8% after rejecting a 7.5 billion dollars bid from Cleveland-Cliffs (CLF), which represents a 43% premium on the company's closing price on August 11. Meanwhile, PayPal (PYPL), an online payment firm, rose 2.81% as it named Alex Chriss as its new CEO.
Nvidia (NVDA), a leading designer of graphics processors, climbed 7.09% as Morgan Stanley said that the company's stock price is a good entry point before its earnings update, following a recent selloff of the stock. The company is due to report earnings results on August 23.
Nikola Corporation (NKLA), a hydrogen-electric vehicle maker, dropped 6.67% after recalling 209 battery-electric trucks. Tesla (TSLA), the electric-vehicle maker, fell 1.19% after cutting prices of some of its Model Y vehicles in China.
AMC Entertainment (AMC), the theatrical exhibition company, sank 35.55% following a court approval that will allow the conversion of its preferred shares into common stock.
The U.S. 10-year Treasury Yield gained 4.7 basis points to 4.199%.
European stocks were mixed. The Dax 40 rose 0.46% and the Cac 40 gained 0.12%, while the FTSE 100 lost 0.23%.
WTI Crude Future (September) dropped $0.68 to $82.51.
Spot gold slipped $6 to $1,908.
Market Wrap: Forex
The U.S. dollar index rose 0.3% to 103.17, ahead of the U.S. retail sales for July due later today, with a growth of 1.0% on month estimated.
EUR/USD slid 43 pips to 1.0906. Germany's wholesale prices declined 0.2% on month in July, compared with a drop of 0.3% expected.
GBP/USD fell 11 pips to 1.2685. Later today, the U.K. jobless rate for the April-June period is expected to be stable at 4.0%.
USD/JPY rose 52 pips to 145.48 and USD/CHF climbed 17 pips to 0.8784.
AUD/USD lost 9 pips to 0.6487, while USD/CAD rose 20pips to 1.346. Canada's consumer price index for July, due later in the day, is anticipated to rebound to 3.1% on year.
Bitcoin traded lower to $29,355.
Crude Oil (WTI) (U3) Intraday: key resistance at 83.20.
Pivot:
83.20
Our preference:
Short positions below 83.20 with targets at 81.75 & 80.80 in extension.
Alternative scenario:
Above 83.20 look for further upside with 83.80 & 84.30 as targets.
Comment:
Technically the RSI is below its neutrality area at 50.
EUR/USD Intraday: capped by a negative trend line.
Pivot:
1.0935
Our preference:
Short positions below 1.0935 with targets at 1.0875 & 1.0855 in extension.
Alternative scenario:
Above 1.0935 look for further upside with 1.0955 & 1.0975 as targets.
Comment:
The RSI advocates for further downside.
Bitcoin / Dollar intraday: the downside prevails as long as 29580 is resistance
Our pivot point stands at 29580.
Our preference:
The downside prevails as long as 29580 is resistance
Alternative scenario:
The upside breakout of 29580, would call for 29910 and 30100.
Comment:
The RSI is below its neutrality area at 50. The MACD is below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 29377 and 29353).
Gold Intraday: expect 1896.00.
Pivot:
1915.00
Our preference:
Short positions below 1915.00 with targets at 1902.00 & 1896.00 in extension.
Alternative scenario:
Above 1915.00 look for further upside with 1921.00 & 1927.00 as targets.
Comment:
A break below 1902.00 would trigger a drop towards 1896.00.
S&P 500 (CME) (U3) Intraday: towards 4537.00.
Pivot:
4485.00
Our preference:
Long positions above 4485.00 with targets at 4537.00 & 4560.00 in extension.
Alternative scenario:
Below 4485.00 look for further downside with 4465.00 & 4442.00 as targets.
Comment:
The RSI is bullish and calls for further advance.
Tesla intraday: short term rebound towards 244.6
Our pivot point stands at 236
Our preference:
Short term rebound towards 244.6
Alternative scenario:
Below 236, expect 233 and 231.2.
Comment:
The RSI is below its neutrality area at 50. The MACD is above its signal line and negative. The configuration is mixed. Tesla is trading under both its 20 and 50 period moving average (respectively at 239.91 and 242.62).
*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.
