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.
On Friday, U.S. technology stocks rallied sharply for a second session, pushing the Nasdaq 100 Index up by 359 points (+2.58%) to 14,298, the highest close since April 2022.
The S&P 500 rose 54 points (+1.30%) to 4,205, and the Dow Jones Industrial Average gained 328 points (+1.00%) to 33,093.
Semiconductors (+4.81%), automobiles (+4.53%), and retailing (+2.9%) stock sectors gained the most.
Nvidia's (NVDA) share price advanced a further 2.54% after rocketing over 24% Thursday.
Marvell Technology (MRVL) soared 32.42%. The semiconductor producer reported better-than-expected quarterly earnings, and said sales growth should accelerate in the second half.
Meanwhile, Broadcom Inc (AVGO) surged 11.52%, Micron Technology (MU) jumped 6.21%, Advanced Micro Devices (AMD) rose 5.55%, and Intel (INTC) rebounded 5.84%.
Tesla (TSLA) rose 4.72%, and Ford Motor (F) climbed 6.24%. Both companies reached an agreement such that Ford electric-vehicles could be charged at more than 12,000 Tesla Superchargers across the U.S. and Canada.
Workday (WDAY) gained 10.01%. The enterprise cloud applications provider's quarterly earnings exceeded expectations.
Gap (GPS) jumped 12.4%. The apparel retailer announced a strong improvement in quarterly margins.
Also, Costco Wholesale (COST) rose 4.26%.
Regarding U.S. economic data, the core personal consumption expenditure price growth ticked up to 4.7% on year in April (vs 4.5% expected). Durable goods orders rose 1.1% on month in April (vs -1.1% expected).
The U.S. 10-year Treasury yield eased 1.9 basis points to 3.798%.
European stocks also closed higher. The DAX 40 rose 1.20%, the CAC 40 gained 1.24%, and the FTSE 100 was up 0.74%.
U.S. WTI crude futures increased $1.00 to $72.80 a barrel.
Gold price added $5 to $1,946 an ounce.
In late Saturday, U.S. President Joe Biden and House Speaker Kevin McCarthy reached a deal to raise the nation’s debt ceiling, which could be a bullish factor for the stock market.
U.S. markets will be closed on Monday for the Memorial Day holiday.
Market Wrap: Forex
The U.S. dollar index was relatively stable at 104.20.
EUR/USD added 5 pips to 1.0730. France's official consumer confidence index remained stable at 83 in May (as expected).
USD/JPY climbed 54 pips to 140.60, the highest level since November 2022.
GBP/USD gained 30 pips to 1.2351. U.K. retail sales grew 0.5% on month in April (vs +0.3% expected).
AUD/USD climbed 15 pips to 0.6520.
USD/CHF eased 7 pips to 0.9050, and USD/CAD declined 27 pips to 1.3615.
Bitcoin surged over 4% to $28,100 after U.S. politicians agreed to a debt-ceiling deal.
Gold Intraday: key resistance at 1952.00
Pivot:
1952.00
Our preference:
Short positions below 1952.00 with targets at 1937.00 & 1931.00 in extension.
Alternative scenario:
Above 1952.00 look for further upside with 1957.00 & 1964.00 as targets.
Comment:
As long as 1952.00 is resistance, look for choppy price action with a bearish bias.
Crude Oil (WTI) (N3) Intraday: intraday support around 72.35.
72.35
Our preference:
Long positions above 72.35 with targets at 74.00 & 74.55 in extension.
Alternative scenario:
Below 72.35 look for further downside with 72.00 & 71.55 as targets.
Comment:
The next resistances are at 74.00 and then at 74.55.
EUR/USD Intraday: the downside prevails.
1.0745
Our preference:
Short positions below 1.0745 with targets at 1.0700 & 1.0685 in extension.
Alternative scenario:
Above 1.0745 look for further upside with 1.0760 & 1.0775 as targets.
Comment:
The RSI is bearish and calls for further downside.
Bitcoin / Dollar intraday: the upside prevails as long as 27210 is support
27210 is our pivot point.
Our preference:
The upside prevails as long as 27210 is support.
Alternative scenario:
Below 27210, expect 26860 and 26650.
Comment:
The RSI is trading above 70. This could mean that either the price is 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. Moreover, the price is above its 20 and 50 period moving average (respectively at 27293 and 27134).
Hang Seng (HKFE) (HK50) Intraday: under pressure.
Pivot:
18840.00
Our preference:
Short positions below 18840.00 with targets at 18380.00 & 18200.00 in extension.
Alternative scenario:
Above 18840.00 look for further upside with 18960.00 & 19130.00 as targets.
Comment:
The RSI advocates for further decline.
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