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. indices lost ground after the S&P 500 slipped 8 points (-0.2%) to 4,446, the Nasdaq 100 fell 4 points (-0.03%) to 15,203 and the Dow Jones Industrial Average dropped 129 points (-0.38%) to 34,288.
The Materials (-2.47%), Semiconductors & Semiconductor Equipment (-1.54%), and Consumer Durables & Apparel (-1.17%) sectors underperformed the most during the trading session.
Rivian Automotive (RIVN), the automotive technology company, climbed 4.45% as Amazon.com (AMZN) announced the arrival of its new custom electric delivery vans from Rivian in Europe.
Meta Platforms (META), a social technology company, increased 2.92% and Alphabet (GOOGL), Google's holding company, added 1.54% after Canadian Heritage Minister Pablo Rodriguez said the Canadian government is hoping to mend relations with the tech giants after they ended news access in the country on their platforms following a bill that was passed into law last month in Canada that'd require platforms to share advertising revenue with the Canadian Government.
Meanwhile, Netflix (NFLX), the video streaming service, rose 1.01% after it was upgraded to "neutral" from "sell" at Goldman Sachs. Oppositely, Coinbase Global (COIN), a cryptocurrency exchange platform, fell 1.98% and underperformed the Nasdaq 100 as it was downgraded to "neutral" from "overweight" at Piper Sandler.
On the U.S. economic data front, the Federal Reserve's latest FOMC meeting minutes revealed that some officials favored a rate hike at this meeting, while almost all participants judged that additional rate increases during 2023 would be appropriate. On the other hand, factory orders rose 0.3% on month in May, against an expected increase of 1.5%.
The U.S. 10-year Treasury Yield gained 7.7 basis points to 3.932%.
European stocks were under pressure at the close for the third time this week. The Dax 40 fell 0.63%, the Cac 40 dropped 0.80% and the FTSE 100 slid 1.03%.
WTI Crude Futures rose $2.1 to $71.9. The American Petroleum Institute reported that U.S. crude oil inventories dropped 4.38 million barrels in the week ending June 30.
Spot gold was down $9 to $1,916.
Market Wrap: Forex
The U.S. dollar index gained 0.3% to 103.36, as the Fed's latest minutes reaffirmed rate hike expectations. Investors would turn their focus to the U.S. employment data due later today, with the ADP employment expected to increase by 160,000 in June.
EUR/USD dropped 24 pips to 1.0855. The eurozone's producer prices index dropped 1.5% on year in May, compared with a decline of 1.1% anticipated.
GBP/USD fell 10 pips to 1.2703.
USD/JPY increased 20 pips to 144.67 and USD/CHF added 18 pips to 0.8988.
AUD/USD slid 37 pips to 0.6655 while USD/CAD climbed 59 pips to 1.3282.
Bitcoin traded lower to $30,458.
Gold Intraday: key resistance at 1925.00.
Pivot:
1925.00
Our preference:
Short positions below 1925.00 with targets at 1910.00 & 1905.00 in extension.
Alternative scenario:
Above 1925.00 look for further upside with 1930.00 & 1935.00 as targets.
Comment:
As long as the resistance at 1925.00 is not surpassed, the risk of the break below 1910.00 remains high.
Crude Oil (WTI) (Q3) Intraday: intraday support around 71.30.
Pivot:
71.30
Our preference:
Long positions above 71.30 with targets at 72.65 & 73.00 in extension.
Alternative scenario:
Below 71.30 look for further downside with 70.80 & 70.40 as targets.
Comment:
The next resistances are at 72.65 and then at 73.00.
EUR/USD Intraday: under pressure.
Pivot:
1.0880
Our preference:
Short positions below 1.0880 with targets at 1.0835 & 1.0820 in extension.
Alternative scenario:
Above 1.0880 look for further upside with 1.0900 & 1.0915 as targets.
Comment:
The RSI is bearish and calls for further decline.
Bitcoin / Dollar intraday: rebound towards 31290
Our pivot point stands at 30170.
Our preference:
Rebound towards 31290
Alternative scenario:
Below 30170, expect 29740 and 29490.
Comment:
The RSI is below its neutrality area at 50. The MACD is negative and above its signal line. The configuration is mixed. Moreover, the price stands above its 20 period moving average (30436) but below its 50 period moving average (30650).
S&P 500 (CME) (M3) Intraday: target 4498.00.
Pivot:
4466.00
Our preference:
Long positions above 4466.00 with targets at 4498.00 & 4520.00 in extension.
Alternative scenario:
Below 4466.00 look for further downside with 4452.00 & 4430.00 as targets.
Comment:
The next resistances are at 4498.00 and then at 4520.00.
Tesla intraday: as long as 274.4 is support look for 295.4
Our pivot point stands at 274.4
Our preference:
As long as 274.4 is support look for 295.4
Alternative scenario:
The downside breakout of 274.4 would call for 266.6 and 262.
Comment:
The RSI is above its neutrality area at 50. The MACD is positive and below its signal line. The price could retrace. Tesla is trading above both its 20 and 50 period moving average (respectively at 279.67 and 268.16).
*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.
