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 closed mixed after a choppy trading session. The Dow Jones Industrial Average fell 232 points (-0.68%) to 33,979, while the S&P 500 added 3 points (+0.08%) to 4,372, and the Nasdaq 100 rose 104 points (+0.70%) to 15,005.
As widely expected, the Federal Reserve kept its key interest rates unchanged at 5.00% - 5.25% after 10 consecutive interest-rate increases.
However, the central bank projected another two 25-basis-point rate hikes before the end of the year.
The U.S. 10-year Treasury yield dropped 1.9 basis points to 3.794%.
Semiconductors (+2.72%), consumer durables & apparel (+2.08%), and transportation (+1.49%) stock sectors gained the most, while health-care equipment & services (-1.8%), banks (-1.17%), and energy (-1.12%) sectors came under pressure.
Nvidia (NVDA) jumped 4.81% to a record close of $429.97.
Advanced Micro Devices (AMD) gained 2.25%. The chip maker unveiled its new artificial intelligence (AI) chip.
Also, Broadcom (AVGO) rose 4.12%, and Intel (INTC) climbed 4.92%.
Microsoft (MSFT) added 0.91% after a U.S. judge temporarily blocked the software giant's acquisition of video game maker Activision Blizzard.
Tesla (TSLA) slipped 0.74% halting a thirteen-session winning streak.
UnitedHealth (UNH) fell 6.4%. The chief finance officer of the private health insurer warned investors of rising healthcare costs.
Also, CVS Health (CVS) dropped 7.76%, and Humana (HUM) plunged 11.24%.
U.S. data showed that producer-price growth slowed to 1.1% on year in May (vs 2.1% expected).
European stocks also closed higher. The DAX 40 rose 0.49%, the CAC 40 climbed 0.52%, and the FTSE 100 was up 0.10%.
U.S. WTI crude futures declined $0.70 to $68.70 a barrel. The U.S. Energy Department reported an addition of 7.92 million barrels in crude-oil stockpiles (vs a reduction of 0.51 million barrels expected).
Gold price was little changed at $1,943 an ounce.
Market Wrap: Forex
The U.S. dollar retreated against other major currencies after the Federal Reserve paused its interest-rate hikes. The dollar index fell to 103.00.
EUR/USD gained 40 pips to 1.0833. The Eurozone's data showed that industrial production grew 1.0% on month in April (vs 1.9% expected).
USD/JPY dropped 24 pips to 139.98. This morning, Japan's data showed that trade deficit widened to 1.37 trillion yen in May with exports growing 0.6% on year (vs -1.1% expected).
Also, machinery orders increased 5.5% on month in April (vs +2.2% expected).
GBP/USD climbed 49 pips to 1.2661. U.K. data showed that gross domestic product grew 0.2% on month in April (as expected), while industrial production declined 0.3% (vs +0.1% expected).
NZD/USD gained 61 pips to 0.6211. This morning, New Zealand's data showed gross domestic product (GDP) shrank 0.1% on quarter in the first quarter (as expected). With two consecutive quarters of negative growth, the country is now in a technical recession.
AUD/USD rose 28 pips to 0.6795.
USD/CHF declined 41 pips to 0.9011, while USD/CAD edged up 8 pips to 1.3326.
Bitcoin slid over 3% to test the support at the $25,000 level.
Gold Intraday: under pressure.
Pivot:
1952.00
Our preference:
Short positions below 1952.00 with targets at 1939.00 & 1933.00 in extension.
Alternative scenario:
Above 1952.00 look for further upside with 1960.00 & 1966.00 as targets.
Comment:
As long as the resistance at 1952.00 is not surpassed, the risk of the break below 1939.00 remains high.
Crude Oil (WTI) (N3) Intraday: key resistance at 69.30.
Pivot:
69.30
Our preference:
Short positions below 69.30 with targets at 68.10 & 67.50 in extension.
Alternative scenario:
Above 69.30 look for further upside with 69.80 & 70.50 as targets.
Comment:
The RSI is bearish and calls for further decline.
EUR/USD Intraday: bullish bias above 1.0805.
Pivot:
1.0805
Our preference:
Long positions above 1.0805 with targets at 1.0865 & 1.0880 in extension.
Alternative scenario:
Below 1.0805 look for further downside with 1.0790 & 1.0770 as targets.
Comment:
The RSI calls for a bounce.
Bitcoin / Dollar intraday: the downside prevails as long as 26210 is resistance
26210 is our pivot point.
Our preference:
The downside prevails as long as 26210 is resistance.
Alternative scenario:
The upside breakout of 26210, would call for 26580 and 26800.
Comment:
The RSI is below its neutrality area at 50. The MACD is below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 25959 and 25935).
S&P 500 (CME) (M3) Intraday: expect 4450.00.
Pivot:
4402.00
Our preference:
Long positions above 4402.00 with targets at 4450.00 & 4470.00 in extension.
Alternative scenario:
Below 4402.00 look for further downside with 4382.00 & 4368.00 as targets.
Comment:
The RSI calls for a new upleg.
Tesla intraday: as long as 252 is support look for 262.8
Our pivot point stands at 252.
Our preference:
As long as 252 is support look for 262.8.
Alternative scenario:
Below 252, expect 249.8 and 248.4.
Comment:
The RSI is above 50. The MACD is below its signal line and positive. The price could retrace. Tesla is below its 20 period moving average (257.84) but above its 50 period moving average (252.33).
*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.
