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 closed lower ahead of the Federal Reserve's rate decision scheduled for Wednesday. The Dow Jones Industrial Average fell 106 points (-0.31%) to 34,517, the S&P 500 declined 9 points (-0.22%) to 4,443, and the Nasdaq 100 was down 34 points (-0.22%) to 15,191.
While the central bank is widely expected to keep interest rates unchanged, investors will watch closely its economic forecasts for clue on the path of inflation and future of monetary policy.
Meanwhile, the U.S. 10-year Treasury yield jumped 6.2 basis points to 4.365%, close to its 16-year high marked in August.
Retailing (-1.23%), semiconductors (-0.92%), and energy (-0.83%) stock sectors lost the most.
Walt Disney (DIS) fell 3.62%. The entertainment and media giant announced a $60 billion investment in its cruise and parks business.
Block Inc (SQ) dropped 2.83%. The company said Square business CEO Alyssa Henry will resign and be replaced by Jack Dorsey, former CEO of Twitter.
NIO (NIO) plunged 17.07%, as the Chinese electric-vehicle maker proposed raising $1 billion in capital through issuing notes.
On the other hand, Enphase Energy (ENPH) rose 4.21%. Regulatory documents showed that a director of the solar-power solutions provider purchased more than $4 million worth of the company's stock.
Maplebear (CART), a grocery delivery company, ended up 12% on its listing debut.
Regarding U.S. economic data, the number of housing starts dropped 11.3% on month to an annualized rate of 1.28 million units in August (vs 1.42 million units expected).
European stocks closed mixed. The DAX 40 fell 0.40%, while the CAC 40 edged up 0.08%, and the FTSE 100 was up 0.09%.
U.S. WTI crude futures retreated $0.28 to $91.20 a barrel.
Gold price eased $2 to $1,931 an ounce.
Market Wrap: Forex
The U.S. dollar remained firm against other major currencies. The dollar index was little changed at 105.15.
EUR/USD slipped 13 pips to 1.0679, GBP/USD added 9 pips to 1.2392.
USD/JPY rebounded 24 pips to 147.85, around the highest level since November.
AUD/USD rose 17 pips to 0.6454. In Australia, the central bank's latest monetary meeting minutes indicated that officials "recognized the value of allowing more time to see the full effects of the tightening of monetary policy."
USD/CAD dropped 42 pips to 1.3444. Canada's data showed that the inflation rate bounced to 4.0% on year in August (vs 3.9% expected).
USD/CHF added 7 pips, closing at 0.8978.
Bitcoin managed to secure the level of $27,000.
Crude Oil (WTI) (X3) Intraday: the downside prevails.
Pivot:
91.35
Our preference:
Short positions below 91.35 with targets at 89.90 & 89.50 in extension.
Alternative scenario:
Above 91.35 look for further upside with 91.95 & 92.40 as targets.
Comment:
The RSI is bearish and calls for further decline.
EUR/USD Intraday: key resistance at 1.0700.
Pivot:
1.0700
Our preference:
Short positions below 1.0700 with targets at 1.0670 & 1.0655 in extension.
Alternative scenario:
Above 1.0700 look for further upside with 1.0715 & 1.0730 as targets.
Comment:
As long as 1.0700 is resistance, look for choppy price action with a bearish bias.
Bitcoin / Dollar intraday: as long as 26920 is support look for 27750
Our pivot point stands at 26920.
Our preference:
As long as 26920 is support look for 27750
Alternative scenario:
The downside breakout of 26920 would call for 26610 and 26430.
Comment:
The RSI is above its neutrality area at 50. The MACD is positive and below its signal line. The price could retrace. Moreover, the price is below its 20 period moving average (27198) but above its 50 period moving average (26988).
Gold Intraday: intraday support around 1927.00.
Pivot:
1927.00
Our preference:
Long positions above 1927.00 with targets at 1937.00 & 1942.00 in extension.
Alternative scenario:
Below 1927.00 look for further downside with 1921.00 & 1916.00 as targets.
Comment:
Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
S&P 500 (CME) (U3) Intraday: key resistance at 4513.00.
Pivot:
4513.00
Our preference:
Short positions below 4513.00 with targets at 4462.00 & 4440.00 in extension.
Alternative scenario:
Above 4513.00 look for further upside with 4530.00 & 4545.00 as targets.
Comment:
The RSI is around its neutrality area at 50%
Tesla intraday: short term rebound towards 280.2
Our pivot point stands at 259.2
Our preference:
Short term rebound towards 280.2
Alternative scenario:
The downside breakout of 259.2 would call for 251.4 and 246.8.
Comment:
The RSI is below 50. The MACD is above its signal line and negative. The configuration is mixed. Tesla stands above its 20 period moving average (265.42) but below its 50 period moving average (270.01).
*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.
