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 traded lower, as stronger-than-expected services sector data boosted expectations of interest rates remaining higher for longer. The Dow Jones Industrial Average fell 198 points (-0.57%) to 34,443, the S&P 500 dropped 31.35 points (-0.70%) to 4,465, and the Nasdaq 100 sank 136 points (-0.88%) to 15,371.
The U.S. Institute for Supply Management (ISM) services purchasing managers index jumped to 54.5 in August (vs 52.4 expected).
The U.S. 10-year Treasury yield advanced 3.4 basis points to 4.294%.
Technology hardware & equipment (-2.93%), automobiles (-1.61%), and semiconductors (-1.54%) stock sectors lost the most.
Apple (AAPL) fell 3.58% to $182.91 on reports that some Chinese government agencies prohibited their staff from using iPhones and foreign-branded devices.
Nvidia (NVDA) dropped 3.06% to $470.61, and Tesla (TSLA) slipped 1.78% to $251.92.
Lockheed Martin (LMT) slid 4.77% to $423.94. The defense contractor lowered its delivery outlook for F-35 jets in 2023.
WeWork (WE) declined 3.39% to $3.42. The provider of co-working spaces announced plans to renegotiate all leases and exit underperforming locations.
European stocks also closed lower. The DAX 40 fell 0.19%, the CAC 40 dropped 0.84%, and the FTSE 100 was down 0.16%.
U.S. WTI crude futures advanced a further $0.90 to $87.55 a barrel.
Gold price sank $9 to $1,916 an ounce.
Market Wrap: Forex
The U.S. dollar remained firm against other major currencies, with the dollar index stepping up to 104.85.
EUR/USD was little changed at 1.0724. The Eurozone's data showed that retail sales decreased 0.2% on month in July (vs -0.1% expected).
Germany's factory orders shrank 11.7% on month in July, worse than a decline of 5.2% expected.
USD/JPY dipped 7 pips to 147.65.
AUD/USD was relatively flat at 0.6381. Australia's data showed that gross domestic product grew 2.1% on year in the second quarter (vs +1.5% expected).
USD/CAD was stable at 1.3641. As expected, Canada's central bank kept its key interest rate unchanged at 5.00%.
GBP/USD dropped 59 pips to 1.2505, while USD/CHF gained 20 pips to 0.8915.
Bitcoin still lacked momentum, as it eased further to $25,660.
Crude Oil (WTI) (V3) Intraday: intraday support around 86.90.
Pivot:
86.90
Our preference:
Long positions above 86.90 with targets at 88.05 & 89.00 in extension.
Alternative scenario:
Below 86.90 look for further downside with 86.15 & 85.60 as targets.
Comment:
The RSI is bullish and calls for further upside.
EUR/USD Intraday: bullish bias above 1.0700.
Pivot:
1.0700
Our preference:
Long positions above 1.0700 with targets at 1.0745 & 1.0760 in extension.
Alternative scenario:
Below 1.0700 look for further downside with 1.0685 & 1.0670 as targets.
Comment:
A support base at 1.0700 has formed and has allowed for a temporary stabilisation.
Bitcoin / Dollar intraday: rebound towards 26230
Our pivot point stands at 25440.
Our preference:
Rebound towards 26230
Alternative scenario:
The downside breakout of 25440 would call for 25140 and 24960.
Comment:
The RSI is below 50. The MACD is negative and above its signal line. The configuration is mixed. Moreover, the price stands above its 20 period moving average (25668) but below its 50 period moving average (25720).
Gold Intraday: aim @ 1907.00.
Pivot:
1924.00
Our preference:
Short positions below 1924.00 with targets at 1912.00 & 1907.00 in extension.
Alternative scenario:
Above 1924.00 look for further upside with 1929.00 & 1934.00 as targets.
Comment:
The RSI lacks upward momentum.
S&P 500 (CME) (U3) Intraday: key resistance at 4480.00.
Pivot:
4480.00
Our preference:
Short positions below 4480.00 with targets at 4447.00 & 4434.00 in extension.
Alternative scenario:
Above 4480.00 look for further upside with 4501.00 & 4519.00 as targets.
Comment:
The upward potential is likely to be limited by the resistance at 4480.00.
Tesla intraday: short term rebound
Our pivot point stands at 246.4
Our preference:
Short term rebound
Alternative scenario:
elow 246.4, expect 240.6 and 237.2.
Comment:
The RSI is above its neutrality area at 50. The MACD is above its signal line and negative. The MACD must break above its zero level to call for further upside. Tesla stands below its 20 and 50 period moving average (respectively at 252.21 and 251.9).
*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.
