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
Friday's trading session saw U.S. stocks closing lower for the third consecutive session. The Dow Jones Industrial Average fell 150 points (-0.43%) to 35,065, the S&P 500 dropped 23 points (-0.53%) to 4,478, and the Nasdaq 100 was down 78 points (-0.51%) to 15,274.
U.S. data showed that the economy added 187,000 nonfarm payrolls in July, slightly below an addition of 190,000 expected, while the jobless rate declined to 3.5% (vs 3.6% expected).
The U.S. 10-year Treasury Yield retreated 14.1 basis points to 4.034%.
The technology hardware & equipment (-4.07%), automobiles (-1.96%), and food & beverage (-1.25%) stock sectors led the market lower, while the retailing sector (4.29%) outperformed.
U.S. Stock Highlights:
- Amazon.com (AMZN), the world's largest online retailer and web services provider, impressed with a gain of 8.27% to $139.57, surpassing quarterly earnings and sales estimates, and offering strong sales guidance for the current quarter.
- Apple (AAPL), the consumer electronics giant, fell 4.8% to $181.99 as quarterly iPhone sales missed expectations, underperforming the Nasdaq 100.
- Booking Holdings (BKNG), a major online travel company, jumped 7.86% to $3063.16, exceeding quarterly earnings and sales estimates.
- DraftKings (DKNG), a sports betting company, surged 5.84% to $31.74 due to better-than-expected quarterly earnings.
- Dropbox (DBX), a smart workspace provider, traded 5.93% higher at $27.49 after beating expectations with quarterly earnings.
- Fortinet (FTNT), a cybersecurity firm, plunged 25.07% to $56.77 as current quarter sales guidance disappointed investors.
- Coinbase Global (COIN), a cryptocurrency exchange platform, declined 3.79% to $87.31 despite a narrower-than-anticipated quarterly loss.
European stocks ended higher. The DAX 40 rose 0.37%, the CAC 40 gained 0.75%, and the FTSE 100 was up 0.47%.
U.S. WTI crude Futures climbed $1.10 to $82.62 a barrel.
Gold price advanced $8 to $1,942 an ounce.
Market Wrap: Forex
The U.S. dollar softened against other major currencies after a relatively down-beat U.S. jobs report. The index fell to 102.02.
U.S. inflation data, also closely-watched by investors, will be released Thursday.
EUR/USD gained 58 pips to 1.1007. The Eurozone's retail sales shrank 0.3% on month in June (vs +0.4% expected).
Germany's factory orders grew 7.0% on month in June (vs +2.0% expected), while France's industrial production declined 0.9% on month in June (vs -0.5% expected).
GBP/USD rose 38 pips to 1.2747.
USD/JPY was down for a second session falling 81 pips to 141.77.
AUD/USD added 17 pips to 0.6568,
USD/CHF eased 13 pips to 0.8729.
USD/CAD increased 32 pips to 1.3385. Canada’s data showed that the jobless rate to 5.5% in July (vs 5.4% expected). Additionally, the July Ivey purchasing managers index posted at 48.6 (vs 49.7 expected).
Bitcoin spent Friday and the weekend trading within a tight range around $29,000.
Crude Oil (WTI) (Q3) Intraday: further upside.
Pivot:
82.00
Our preference:
Long positions above 82.00 with targets at 83.80 & 84.70 in extension.
Alternative scenario:
Below 82.00 look for further downside with 81.10 & 79.90 as targets.
Comment:
The RSI shows upside momentum.
EUR/USD Intraday: bullish bias above 1.0960.
Pivot:
1.0960
Our preference:
Long positions above 1.0960 with targets at 1.1040 & 1.1065 in extension.
Alternative scenario:
Below 1.0960 look for further downside with 1.0935 & 1.0910 as targets.
Comment:
Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
Bitcoin / Dollar intraday: the upside prevails as long as 28740 is support
Our pivot point stands at 28740.
Our preference:
The upside prevails as long as 28740 is support.
Alternative scenario:
Below 28740, expect 28360 and 28130.
Comment:
The RSI is above 50. 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 29013 and 29029).
Gold Intraday: bullish bias above 1935.00.
Pivot:
1935.00
Our preference:
Long positions above 1935.00 with targets at 1949.00 & 1954.00 in extension.
Alternative scenario:
Below 1935.00 look for further downside with 1929.00 & 1924.00 as targets.
Comment:
The RSI calls for a rebound.
S&P 500 (CME) (U3) Intraday: under pressure.
Pivot:
4530.00
Our preference:
Short positions below 4530.00 with targets at 4470.00 & 4450.00 in extension.
Alternative scenario:
Above 4530.00 look for further upside with 4560.00 & 4580.00 as targets.
Comment:
As long as the resistance at 4530.00 is not surpassed, the risk of the break below 4470.00 remains high.
Tesla intraday: below its lower Bollinger band
Our pivot point stands at 258.8
Our preference:
The downside prevails as long as 258.8 is resistance.
Alternative scenario:
The upside breakout of 258.8, would call for 263.4 and 266.2.
Comment:
The RSI is below 50. 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 258.43 and 257.45). Finally, the Tesla has penetrated its lower Bollinger band (254.89).
*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.
