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 extended their rally to a fourth session. The Dow Jones Industrial Average rose 145 points (+0.43%) to 34,212, the S&P 500 climbed 30 points (+0.69%) to 4,369, and the Nasdaq 100 advanced 116 points (+0.79%) to 14,900.
U.S. data showed that the inflation rate slowed further to 4.0% on year in May (vs 4.3% expected), the slowest pace since March 2021, leading to wide expectations that the Federal Reserve will hold interest rates at the 5.00%-5.25% range on Wednesday.
However, the U.S. 10-year Treasury yield still gained 8.4 basis points to 3.819%.
Automobiles (+3.32%), materials (+2.33%), and semiconductors (+1.8%) stock sectors were the top performers.
Tesla (TSLA) rose 3.55% to $258.71, posting a thirteen-session winning streak.
Nvidia (NVDA) climbed 3.90% to $410.22 boosting its market capitalization to $1 trillion.
At the same time, Intel (INTC) rose 2.54%, while Advanced Micro Devices (AMD) fell 3.61%.
GameStop (GME) jumped 10.91%. The video-game retailer's executive chairman and other executives reported purchasing shares in the company.
Apple (AAPL) ended 0.26% lower after the tech giant was downgraded to "neutral" at UBS.
Devon Energy (DVN) rose 2.00%, as the energy exploration firm was upgraded to "buy" at Goldman Sachs.
U.S.-listed shares of Chinese companies performed well after China's central bank lowered its short-term lending rate. Alibaba (BABA) rose 1.92%, Baidu (BIDU) gained 6.11%, and JD.com (JD) was up 3.51%.
European stocks closed higher. The DAX 40 rose 0.82%, the CAC 40 climbed 0.56%, and the FTSE 100 was up 0.32%.
U.S. WTI crude futures gained $2.30 to $69.37 a barrel.
Gold price retreated $14 to $1,943 an ounce.
Market Wrap: Forex
The U.S. dollar index closed at a three-week low of 103.29 on wide expectations that the Fed will pause interest rate hikes.
EUR/USD added 34 pips to 1.0791. In Germany, the ZEW economic sentiment index improved to -8.5 in June (vs -12.0 expected).
USD/JPY increased 60 pips to 140.20.
GBP/USD jumped 101 pips to 1.2610. U.K. data showed that the latest jobless rate dipped to 3.8% (vs 3.9% expected).
AUD/USD rose 16 pips to 0.6767. In Australia, the National Australia Bank (NAB) business confidence index dropped to -4 in May (vs 2 expected).
USD/CHF fell 36 pips to 0.9054, and USD/CAD dropped 55 pips to 1.3313.
Bitcoin was little changed at $25,860.
Gold Intraday: the downside prevails.
Pivot:
1952.00
Our preference:
Short positions below 1952.00 with targets at 1939.00 & 1933.00 in extension.
Alternative scenario:
Above 1952.00 look for further upside with 1958.00 & 1964.00 as targets.
Comment:
The RSI calls for a new downleg.
Crude Oil (WTI) (N3) Intraday: the bias remains bullish.
Pivot:
68.25
Our preference:
Long positions above 68.25 with targets at 69.80 & 70.80 in extension.
Alternative scenario:
Below 68.25 look for further downside with 67.50 & 66.80 as targets.
Comment:
The RSI is above its neutrality area at 50%.
EUR/USD Intraday: bullish bias above 1.0770.
Pivot:
1.0770
Our preference:
Long positions above 1.0770 with targets at 1.0805 & 1.0820 in extension.
Alternative scenario:
Below 1.0770 look for further downside with 1.0755 & 1.0740 as targets.
Comment:
Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
Bitcoin / Dollar intraday: the downside prevails as long as 26180 is resistance
26180 is our pivot point.
Our preference:
The downside prevails as long as 26180 is resistance.
Alternative scenario:
The upside breakout of 26180, would call for 26550 and 26770.
Comment:
The RSI is below 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 25974 and 25990).
S&P 500 (CME) (M3) Intraday: the upside prevails.
Pivot:
4388.00
Our preference:
Long positions above 4388.00 with targets at 4450.00 & 4470.00 in extension.
Alternative scenario:
Below 4388.00 look for further downside with 4368.00 & 4348.00 as targets.
Comment:
The next resistances are at 4450.00 and then at 4470.00.
Tesla intraday: as long as 256.8 is support look for 263
Our pivot point stands at 256.8.
Our preference:
As long as 256.8 is support look for 263.
Alternative scenario:
Below 256.8, expect 254.4 and 253.
Comment:
The RSI is trading above 70. This could mean that either prices are in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is below its signal line and positive. The price could retrace. Tesla is above its 20 and 50 period moving average (respectively at 254.56 and 247.68).
*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.
