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 Friday, U.S. stocks gained for a second trading session. The Dow Jones Industrial Average rose 43 points (+0.13%) to 33,876, the S&P 500 climbed 4 points (+0.11%) to 4,298, and the Nasdaq 100 was up 43 points (+0.30%) to 14,528.
Automobiles (+3.5%), software & services (+0.81%), and health-care equipment & services (+0.57%) stock sectors gained the most.
Tesla (TSLA) rose 4.06% to $244.40, extending its winning streak to an eleventh session. The electric-vehicle maker and U.S. auto giant General Motors (GM) announced a collaboration in which Tesla will open its fast-charging network in North America to General Motors electric vehicles. General Motors closed 1.06% higher.
Oracle (ORCL) climbed 2.21% to close at $109.85, a 52-week high price. The software company will report quarterly results in after-market hours on Monday.
Adobe (ADBE) advanced 3.41%. The software developer was upgraded to "overweight" at Wells Fargo.
Target (TGT) fell 3.26%. The leading discount retailer was downgraded to "neutral" at Citi.
The U.S. 10-year Treasury yield rose 2.3 basis points to 3.741%.
European stocks closed lower. The DAX 40 fell 0.25%, the CAC 40 dipped 0.12%, and the FTSE 100 was down 0.49%.
U.S. WTI crude futures declined $0.90 to $70.37 a barrel.
Gold price dropped $4 to $1,960 an ounce.
Market Wrap: Forex
The U.S. dollar index climbed to 103.58. U.S. inflation data will be released on Tuesday, and the inflation rate is expected to slow to 4.7% on year in May.
Also, the U.S. Federal Reserve (Wednesday), the European Central Bank (Thursday), and the Bank of Japan (Friday) will set interest rates within this week.
EUR/USD dropped 35 pips to 1.0747.
USD/JPY jumped 49 pips to 139.41. This morning, Japan's data showed that producer-price growth declined to 5.1% on year in May (vs 4.9% expected).
GBP/USD added 17 pips to 1.2570, and AUD/USD rose 25 pips to 0.6741.
USD/CHF increased 44 pips to 0.9034.
USD/CAD dipped 11 pips to 1.3346. Canada's data showed that the economy unexpectedly shed 17,300 jobs in May (vs +40,000 expected), while the jobless rate rose to 5.2% (vs 5.1% expected).
Over the weekend, Bitcoin lost the $26,000 level falling to $25,850.
Gold Intraday: consolidation in place.
Pivot:
1967.00
Our preference:
Short positions below 1967.00 with targets at 1954.00 & 1948.00 in extension.
Alternative scenario:
Above 1967.00 look for further upside with 1973.00 & 1978.00 as targets.
Comment:
As long as 1967.00 is resistance, look for choppy price action with a bearish bias.
Crude Oil (WTI) (N3) Intraday: under pressure.
Pivot:
71.00
Our preference:
Short positions below 71.00 with targets at 69.00 & 68.25 in extension.
Alternative scenario:
Above 71.00 look for further upside with 71.70 & 72.20 as targets.
Comment:
The RSI is bearish and calls for further decline.
EUR/USD Intraday: bullish bias above 1.0730.
Pivot:
1.0730
Our preference:
Long positions above 1.0730 with targets at 1.0760 & 1.0775 in extension.
Alternative scenario:
Below 1.0730 look for further downside with 1.0715 & 1.0700 as targets.
Comment:
Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
Bitcoin / Dollar intraday: the RSI is overbought
Our pivot point stands at 25770.
Our preference:
The upside prevails as long as 25770 is support.
Alternative scenario:
The downside breakout of 25770 would call for 25420 and 25210.
Comment:
The RSI is above 70. It could mean either that the price is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). 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 25850 and 25808). Finally, the Bitcoin / Dollar is trading above its upper Bollinger band (standing at 26077).
S&P 500 (CME) (M3) Intraday: intraday support around 4342.00.
Pivot:
4342.00
Our preference:
Long positions above 4342.00 with targets at 4369.00 & 4380.00 in extension.
Alternative scenario:
Below 4342.00 look for further downside with 4328.00 & 4313.00 as targets.
Comment:
The next resistances are at 4369.00 and then at 4380.00.
Tesla intraday: as long as 242 is support look for 248.8
Our pivot point stands at 242.
Our preference:
As long as 242 is support look for 248.8.
Alternative scenario:
The downside breakout of 242 would call for 239.8 and 238.4.
Comment:
The RSI is above 50. The MACD is below its signal line and positive. The price could retrace. Tesla is trading above both its 20 and 50 period moving average (respectively at 242 and 231.97).
*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.
