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 gave up gains seen earlier in the session. The Dow Jones Industrial Average closed 106 points lower (-0.31%) at 33,963, the S&P 500 fell 9 points (-0.23%) to 4,320, while the Nasdaq 100 managed to gain 6 points (+0.05%) to 14,701.
All the three major indexes posted weekly losses, with the S&P 500 (-2.93%) and the Nasdaq 100 (-3.30%) marking their largest weekly percentage drops since March.
The U.S. 10-year Treasury yield retreated 5.7 basis points to 4.438%.
Semiconductors (+1.06%) and technology hardware & equipment (+0.45%) stock sectors posted gains, while automobiles (-3.46%) and banks (-1.34%) sectors lost the most.
Tesla (TSLA) fell 4.23% on concerns over the electric-vehicle maker's sales volume in China.
Ford Motor (F) climbed 1.89%, as the United Auto Workers union reported progress in talks with the car-maker.
Microsoft (MSFT) declined 0.79%, while Activision Blizzard (ATVI) added 1.70%. The U.K. Competition and Markets Authority (CMA) indicated that Microsoft's sale of cloud gaming rights is constructive to the approval of its proposed acquisition of Activision Blizzard.
Chinese e-commerce giants Alibaba (BABA) and JD.com (JD) gained 4.98% and 2.01% respectively, driven by reports suggesting that China might ease foreign ownership restrictions on domestic companies.
Regarding European markets, the DAX 40 dipped 0.09%, the CAC 40 dropped 0.40%, while the FTSE 100 added 0.07%.
U.S. WTI crude futures gained $0.40 to $90.03 a barrel.
Gold price increased $5 to $1,925 an ounce.
Market Wrap: Forex
The U.S. dollar remained firm against other major currencies. The dollar index advanced to 105.61.
EUR/USD slipped 18 pips to 1.0643. The HCOB manufacturing purchasing managers index (PMI) for September gave contraction readings (below 50) for the Eurozone (43.4), Germany (39.8) and France (43.6).
GBP/USD sank a further 60 pips to 1.2238. The S&P Global U.K. manufacturing PMI posted at 44.2 for September.
USD/JPY rebounded 81 pips to 148.40. As widely expected, the Bank of Japan kept its monetary policy unchanged, holding its key interest rate at -0.100%.
BOJ Governor Kazuo Ueda gave a rather dovish comment: "We have yet to foresee inflation stably and sustainably achieve our price target."
AUD/USD gained 26 pips to 0.6442.
USD/CHF rose 28 pips to 0.9073, while USD/CAD dipped 6 pips to 1.3477.
Bitcoin was little changed at $26,527.
Crude Oil (WTI) (X3) Intraday: bounce.
Pivot:
89.70
Our preference:
Long positions above 89.70 with targets at 90.75 & 91.30 in extension.
Alternative scenario:
Below 89.70 look for further downside with 89.30 & 88.90 as targets.
Comment:
The RSI calls for a bounce.
EUR/USD Intraday: key resistance at 1.0670.
Pivot:
1.0670
Our preference:
Short positions below 1.0670 with targets at 1.0630 & 1.0615 in extension.
Alternative scenario:
Above 1.0670 look for further upside with 1.0685 & 1.0700 as targets.
Comment:
As long as 1.0670 is resistance, look for choppy price action with a bearish bias.
Bitcoin / Dollar intraday: the downside prevails as long as 26800 is resistance
Our pivot point stands at 26800.
Our preference:
The downside prevails as long as 26800 is resistance
Alternative scenario:
The upside breakout of 26800, would call for 27110 and 27290.
Comment:
The RSI is below its neutrality area at 50. The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 26576 and 26582).
Gold Intraday: the bias remains bullish.
Pivot:
1919.00
Our preference:
Long positions above 1919.00 with targets at 1930.00 & 1935.00 in extension.
Alternative scenario:
Below 1919.00 look for further downside with 1913.00 & 1906.00 as targets.
Comment:
Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
S&P 500 (CME) (Z3) Intraday: under pressure.
Pivot:
4398.00
Our preference:
Short positions below 4398.00 with targets at 4345.00 & 4315.00 in extension.
Alternative scenario:
Above 4398.00 look for further upside with 4431.00 & 4468.00 as targets.
Comment:
The RSI advocates for further decline.
Tesla intraday: the RSI is oversold
Our pivot point stands at 252.8
Our preference:
The downside prevails as long as 252.8 is resistance.
Alternative scenario:
The upside breakout of 252.8, would call for 259.4 and 263.2.
Comment:
The RSI is trading below 30. This could mean that either prices are in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Tesla stands below its 20 and 50 period moving average (respectively at 253.92 and 260.55).
*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.
