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 kicked off the trading week on a positive note. The Dow Jones Industrial Average rose 87 points (+0.25%) to 34,663, the S&P 500 gained 29 points (+0.67%) to 4,487, and the Nasdaq 100 jumped 181 points (+1.19%) to 15,461.
The U.S. 10-year Treasury yield added 2.6 basis points to 4.290%.
Automobiles (+8.33%), retailing (+1.95%), and telecoms services (+1.37%) stock sectors were the top performers, while the energy (-1.31%) sector lost the most.
Tesla (TSLA) surged by an impressive 10.09% to $273.58. Wall Street firm Morgan Stanley upgraded the electric-vehicle maker to "overweight" raising its target price on the stock to $400.
Meta Platforms (META) gained 3.25% to $307.56. The Wall Street Journal reported that the company is working on an innovative artificial intelligence system.
Qualcomm (QCOM) advanced 3.90% to $110.28. Apple Inc (AAPL) extended an agreement to get its modem chips from Qualcomm for three years.
On the other hand, RTX Corp (RTX) fell 7.88% to $76.90. The aerospace giant said it expects a $3 billion charge in the third quarter due to a flaw in its jet engine model.
JM Smucker (SJM) sank 7.01% to $131.66. The food maker agreed to buy packaged-food provider Hostess Brands (TWNK) for $5.6 billion. Hostess Brands (TWNK) surged 19.14% to $33.49.
European stocks also closed higher. The DAX 40 rose 0.36%, the CAC 40 gained 0.52%, and the FTSE 100 was up 0.25%.
U.S. WTI crude futures declined $0.25 to $87.26 a barrel.
Gold price increased $3 to $1,922 an ounce.
Market Wrap: Forex
The U.S. dollar eased against other major currencies ahead of the release of inflation data on Wednesday. The dollar index retreated to 104.53.
USD/JPY sank 131 pips to 146.52. Over the weekend, Bank of Japan Governor Kazuo Ueda said the central bank could end its negative interest rate policy when achievement of its 2% inflation target is in sight.
EUR/USD increased 51 pips to 1.0751. The European Commission lowered its Eurozone economic growth forecast for 2023 to 0.8% from 1.1% previously.
GBP/USD gained 45 pips to 1.2513.
AUD/USD rose 56 pips to 0.6432. This morning, Australia's data showed that the Westpac consumer confidence index fell to 79.7 in September (vs 81.5 expected).
USD/CHF slipped 25 pips to 0.8906, and USD/CAD was down 66 pips to 1.3574.
Bitcoin showed downward momentum testing the support at the $25,000 level.
Crude Oil (WTI) (V3) Intraday: supported by a rising trend line.
Pivot:
86.80
Our preference:
Long positions above 86.80 with targets at 88.15 & 88.50 in extension.
Alternative scenario:
Below 86.80 look for further downside with 86.15 & 85.75 as targets.
Comment:
The RSI is mixed with a bullish bias.
EUR/USD Intraday: further advance.
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:
The RSI advocates for further upside.
Bitcoin / Dollar intraday: the RSI is oversold
Our pivot point stands at 25350.
Our preference:
The downside prevails as long as 25350 is resistance.
Alternative scenario:
The upside breakout of 25350, would call for 25640 and 25820.
Comment:
The RSI is below 30. It could either mean that the price is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 25355 and 25613).
Gold Intraday: expect 1930.00.
Pivot:
1918.00
Our preference:
Long positions above 1918.00 with targets at 1930.00 & 1935.00 in extension.
Alternative scenario:
Below 1918.00 look for further downside with 1914.00 & 1909.00 as targets.
Comment:
A support base at 1918.00 has formed and has allowed for a temporary stabilisation.
S&P 500 (CME) (U3) Intraday: intraday support around 4515.00.
Pivot:
4515.00
Our preference:
Long positions above 4515.00 with targets at 4552.00 & 4570.00 in extension.
Alternative scenario:
Below 4515.00 look for further downside with 4500.00 & 4483.00 as targets.
Comment:
The next resistances are at 4552.00 and then at 4570.00.
Tesla intraday: the RSI is overbought
Our pivot point stands at 268.6
Our preference:
The upside prevails as long as 268.6 is support.
Alternative scenario:
The downside breakout of 268.6 would call for 261.8 and 257.6.
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 above its signal line and positive. The configuration is positive. Tesla is trading above both its 20 and 50 period moving average (respectively at 261.58 and 254.93).
*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.
