Indices Updates by Solid ECN

[Solid ECN]

The stock markets of the EU countries continue to trade in a local downtrend against the background of the reduction by the World Bank of the world economic growth forecast for 2022 to 3.2%. The main reasons for the correction of the indicator are losses caused by the development of the military conflict in Ukraine, quarantine restrictions due to the spread of the coronavirus pandemic, as well as a significant increase in inflation. These factors can lead to an increase in the level of poverty in the world due to sudden spikes in prices for energy, fertilizers and food, and the policy of adjusting interest rates is likely to exacerbate the inequality of residents of different territories. The previous forecast for global GDP growth was 4.1%, but due to the situation in Ukraine, it was also lowered. Meanwhile, the estimated global economy in 2021 grew by 5.5%, showing the highest post-recession pace in 80 years.

At the moment, the situation in the German domestic bond market is coming to the fore again, where growth continues. Thus, 10-year debt stocks reached a yield of 0.9240%, despite the fact that at the beginning of the month it was only 0.5170%. In turn, the yield of conservative 20-year bonds exceeded the 1% mark for the first time since 2018, and is now at 1.014%, having risen from 0.556% at the beginning of the month.

On the global chart of the asset, the price is trading as part of a correction to the previous decline. Technical indicators are reversing again, and are ready to issue a signal to start purchases: the range of EMA fluctuations on the alligator indicator is actively narrowing, and the histogram of the AO oscillator has moved into the buying zone, forming the first ascending bar.

Support levels: 13883, 12600 | Resistance levels: 14550, 15420[/JUSTIFY]

 

[Solid ECN]

On the daily chart, the first wave of the higher level (1) of C formed, and a correction developed as the second wave (2) of C. Now, the wave C of (2) has formed and the development of the wave (3) has started, within which the first wave of the lower level 1 of (3) is forming.

If the assumption is correct, the price will grow to the levels of 242.7 - 260. In this scenario, critical stop loss level is 173.09.

 

[Solid ECN]

The Dow Jones is correcting upwards and is trading at 35330.

The first week of corporate reporting showed that investors are redirecting their capital from the communications sector to the real one after companies in this segment began to publish disappointing financial results one after another. The day before, Netflix Inc. lost more than 35% of value after the company announced a possible decrease in the number of active subscribers by 2 million earlier this year.

In turn, the reports of Tesla Inc. and Procter & Gamble Co. supported the market. Electric car manufacturer Tesla Inc. reported revenue of 18.76 billion dollars, up from 17.72 billion dollars a quarter earlier, and EPS hit 3.22 dollars for the first time in history. Industrial group Procter & Gamble Co. also posted quarterly revenue growth of 19.38 billion dollars versus a forecast of 18.72 billion dollars, with earnings per share of 1.33 dollars, higher than the expected 1.3 dollars.

The index quotes made an attempt to overcome the resistance line and leave the long downward channel. Technical indicators issued a new buy signal: fast EMAs of the Alligator indicator began to actively expand the range of fluctuations in the direction of growth, and the histogram of the AO oscillator is forming new rising bars.

Support levels: 34150, 32560 | Resistance levels: 35680, 36930​

 

[Solid ECN]

On the daily chart, the fifth wave of the higher level (5) develops, within which the wave 3 of (5) formed, and the fourth wave 4 of (5) develops. Now, the wave a of 4 has formed, the wave b of 4 has ended, and the development of wave c of 4 has started, within which the wave of the lower level (ii) of c is ending.

If the assumption is correct, the price will fall to the levels of 144.62 - 131.35. In this scenario, critical stop loss level is 194.7.

[/JUSTIFY]

 

[Solid ECN]

The shares of eBay Inc., an American online retailer, are correcting upwards of around 55.

On the daily chart of the asset, a narrow downward channel has developed. Currently, the price is approaching the range resistance line passed earlier to retest it. Despite exiting the channel, the rate is still below the initial 23.6% Fibonacci retracement at 57.00, which is a prerequisite for starting an upward correction.

On the four-hour chart of the asset, the first signs of future growth begin to appear, and if it consolidates above the initial correction of 23.6% around $57, two trend development scenarios are relevant. The first and most likely one is reaching the 38.2% Fibonacci base correction level at $62 The second scenario assumes a fully formed correction, reaching the 61.8% full correction level at 69.

[/JUSTIFY]

 

[Solid ECN]

Against the backdrop of the start of the corporate reporting period, the French stock index is trying to show growth. The day before, L’Oreal SA, Danone SA and Kering SA provided their reports. L'Oreal SA reported revenue of 9.06 billion euros, which was in line with the previous quarter and exceeded the forecast of 8.86 billion euros in revenue. Food concern Danone SA reported quarterly revenue of 6.24 billion euros, which exceeded the forecast of 6.2 billion euros and coincided with revenue in the previous quarter. Luxury goods maker Kering SA reported revenue of 4.96 billion euros, which beat the forecast of 4.63 billion euros.

Along with the stock market, the bond market continues to grow. The yield on 10-year French Treasuries increased by 0.47% and conservative 20-year ones increased by 0.03%. Traditionally, short-term bonds demonstrate the greatest growth: the yield of 9-month bonds increased by 4.57% compared to yesterday's close.

The quotes of the asset are traded within the global downward channel, having reached the level of the resistance line the day before. Technical indicators are holding a local buy signal: the range of EMA fluctuations on the Alligator indicator has started expanding in the direction of growth, and the histogram of the AO oscillator is trading in the purchase zone while forming local ascending bars.

Support levels: 6340, 5880 | Resistance levels: 6800, 7150​

 

[Solid ECN]

Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. It is one of the largest aerospace, intelligence services providers, and defense manufacturers in the world by revenue and market capitalization.

The shares of Raytheon Technologies Corp., one of the largest US financial and industrial groups, are moving within a stable corrective trend near the level of 100.

On the daily chart, a narrow ascending channel is forming, within which the price once again failed to consolidate above the resistance line around 106 and returned to the channel, dropping to the support line at 99, coinciding with the initial correction level of 23.6% Fibonacci. The beginning of a global downward correction is possible only after the consolidation below the level.

Technical indicators signal the presence of a stable buy signal but do not rule out a downward correction: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram is forming downward bars in the buying zone.

 

[Solid ECN]

General Electric Co. stocks continue to trade within the mid-term downward channel. Over the past two weeks, the price has attempted to grow and reached 93.74, but then corrected downwards against the background of the statement by the head of the US Fed Jerome Powell about the need for a sharp adjustment of interest rates already at the May meeting of the regulator.

The growth of quotations of the trading instrument may resume if positive financial statements on activities for Q1 2022 are published on Tuesday. It should be noted that during the last four reporting quarters, management reported higher profits than experts expected. Positive dynamics is also possible in Q1 2022, as efforts to reduce the volume of debts, reduce costs and benefits from previously acquired assets will affect financial indicators. According to the estimates of the analytical company Zacks Investment Research, the income of General Electric Co. in the healthcare sector, may amount to 4,206B dollars, which is 2.4% less than the same indicator last year. The profit of the aviation sector may reach 5.896B dollars, which is 18.1% more than in the same period last year. Total earnings per share may amount to 0.23 dollars, and total revenue – to 17.17B dollars. In general, investors will be able to receive 3.16 dollars per share for the year.

In case of a breakdown of 89.06 (Murray [1/8]), the decline may continue to 87.50 (Murray [0/8]), 85.94 (Murray [-1/8]). The key level for the "bulls" is 91.40 (the middle line of the Bollinger Bands). Its breakout will provide growth to 93.75 (Murray [4/8]), 95.31 (Murray [5/8]). Technical indicators signal a decline: the Bollinger Bands and the Stochastic are reversing downwards, the MACD histogram is increasing in the negative zone.

Resistance levels: 91.40, 93.75, 95.31 | Support levels: 89.06, 87.50, 85.94​

 

[Solid ECN]

The leading index of the London Stock Exchange FTSE 100 is showing local corrective dynamics and is now at 7474.0.

Tomorrow, one of the largest components, HSBC Holdings Plc., and tobacco market leader, British American Tobacco Group, will publish their financial statements. From the British financial giant, analysts expect quarterly revenue to rise to 9.76 billion pounds, well above 8.89 billion in the previous period, but forecasts for the British American Tobacco Group are rather pessimistic: revenue is expected to fall to 12.67 billion pounds compared to 13.51 billion a quarter earlier.

One should also note the ongoing correction in the UK bond market, where 10-year bonds fell to 1.8465% from 2.0150% at the end of last week. The yield on 20-year conservative bonds corrected to 1.954%, which is well below the high of 2.128% set last Thursday

Index quotes are trading within the global Expanding Formation pattern. Technical indicators are in a buy signal state, which is rapidly weakening: the fluctuation range of the Alligator indicator EMAs is actively narrowing and the histogram of the AO oscillator is approaching the transition level.

Support levels: 7350, 6990 | Resistance levels: 7670, 7900​

 

[Solid ECN]

Shares of one of the world's leading retail holdings Johnson & Johnson are being corrected and traded at around 183.

On the daily chart of the asset, the price is holding above the resistance line of the global ascending channel, breaking the initial Fibonacci extension trend level of 61.8%, located at around 175.

On the four-hour time frame, it is clearly seen that the instrument will soon reach the the initial Fibonacci extension trend level of 100.0% in the area of 190.00, after which the strength of the uptrend will increase and the likelihood of continued growth will also increase significantly.

Technical indicators signal in favor of the development of upward dynamics: the range of EMA fluctuations on the Alligator indicator expands in the direction of growth, and the histogram of the AO oscillator is forming new ascending bars in the purchase zone.​

 

[Solid ECN]

The Dow Jones is correcting upwards and is trading at 33967

The active phase of the publication of corporate reports continues, and at the end of this week, the technology company Meta Platforms Inc. presented its data. Despite the loss of the Russian and Belarusian markets, the issuer managed to increase the number of active users to 1.96B from 1.93B a quarter earlier. However, statistics recorded a drop in quarterly revenue to 27.91B dollars from 33.67B dollars and net income from 9.50B dollars to 7.47B dollars in Q1 2022. The world's largest chain of fast food restaurants McDonald's Corp. reported an 11% increase in revenue over the same period. Earnings per share were 2.28 dollars, which even surpassed the successful previous quarter, when the figure was about 2.23 dollars.

As for the bond market, the yield on the popular 10-year bonds fell slightly and amounted to 2.820%, while the conservative 20-year bonds lost 1.02% and are now trading at a yield of 3.091%.

Quotes of the index continue to decline within a wide downward channel, approaching the support line. Technical indicators are holding a local sell signal: fast EMAs of the Alligator indicator began to actively expand the range of fluctuations in the direction of decline, and the histogram of the AO oscillator is forming new descending bars.

Support levels: 33200, 32320 | Resistance levels: 34230, 35340​

 

[Solid ECN]

On the daily chart, the development of the third wave of the higher level 3 has completed, in which wave (5) of 3 has formed, and the development of a downward correction as the fourth wave 4 continues. At the moment, wave (A) of 4 has formed, wave (B) of 4 has completed and wave (C) of 4 is developing, in which the first wave of the lower level 2 of (C) was formed.

If the assumption is correct, the price will fall to the levels of 148.43 - 127.03. The level of 170.35 is critical and stop-loss for this scenario.

 

[SOLIDECN]

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Corporate reporting data puts pressure on quotes.​

S&P 500 is correcting down after the release of the financial results of the leading components and is now trading at 4173.

This week may continue the negative wave of reporting giants of the US corporate sector. The holding company controlled by Warren Buffett, Berkshire Hathaway Inc., reported revenue of 70.81B dollars, beating analysts' forecast of 70.19B dollars, but earnings per share were 4.774K dollars, down from 4.901K dollars a quarter earlier.

Pfizer Inc., Advanced Micro Devices Inc. (AMD) and Starbucks Corp. will present their data today. Market participants expect from pharmaceutical giant Pfizer Inc. a quarterly revenue of 24.1B dollars, which could surpass the previous period's figure of 23.84B dollars. AMD could also improve, posting a profit of 5.01B dollars from 4.83B dollars, while the global coffee market leader, Starbucks Corp., is likely to worsen its numbers (revenue could reach 7.62B dollars, which is below 8.05B dollars a quarter earlier).

The index quotes are trading in a global downtrend, falling towards the support line. Technical indicators maintain the global sell signal: the fast EMAs of the Alligator indicator are below the signal line, and the histogram of the AO oscillator is trading in the sell zone, forming descending bars.

Support levels: 4100, 3800 | Resistance levels: 4280, 4590​

 

[Solid ECN]

The leading index of the Frankfurt Stock Exchange DAX 30 is trading at 14300. The German stock market shows a slight corrective growth after the publication of positive financial statements of the main components.

Earlier, the national postal service Deutsche Post AG presented its data, which reported revenue of 22.59B euros, which significantly exceeded the analysts' forecast, which assumed a value of 20.54B euros. Earnings per share also exceeded preliminary market estimates of 0.9309 euros and amounted to 1.0800 euros. The statistics of the world's largest automaker, Volkswagen AG, also turned out to be positive: quarterly revenue was recorded at 62.74B euros, exceeding the forecast of 61.55B euros. Earnings per share amounted to 13.05 euros, which is the highest since Q1 2020. Siemens AG's medical equipment manufacturing division, Siemens Healthineers AG, reported revenue of 5.46B euros, improving both analysts' forecast of 4.98B euros and the previous quarter's figure of 5.07B euros. Earnings per share have become a record since 2018, amounting to 0.67 euros per share.

On the daily chart, the index is preparing to start working out the local Flag pattern. Technical indicators will soon reverse and give a signal for the start of purchases: the range of EMA fluctuations on the alligator indicator has begun to actively narrow, and the histogram of the AO oscillator is approaching the transition level, forming ascending bars.

Support levels: 13555, 12460 | Resistance levels: 14500, 15710​

 

[Solid ECN]

The leading index of the London Stock Exchange FTSE 100 demonstrates local corrective dynamics and is now at the level of 7487.0. As expected, after the Bank of England raised the interest rate from 0.75% to 1.00% at yesterday's monetary policy meeting, the stock market of the United Kingdom moved to a decline, since adjusting the value is always a negative aspect for risky assets such as stocks.

As for the corporate segment itself, the presented financial statements turned out to be ambiguous. Thus, Royal Gold Inc., a company engaged in the sale of precious metals and royalties, reported revenue of 162.36M pounds, exceeding analysts' preliminary estimates of 140.45M pounds, while earnings per share amounted to 0.99 pounds against the forecast of 0.86 pounds. Shell Oil and Gas Concern Plc recorded a 26% increase in net profit, despite the loss of 3.9B dollars after leaving the Russian market. Among the negative reports, another oil and gas giant, British Petroleum Plc, should be noted, which reported a drop in quarterly revenue to 49.26B pounds from 52.24B pounds. The final financial result was also affected by estimated losses of 25B dollars due to the loss of the Russian sales market.

The index quotes continue to trade within the framework of the global Broadening Formation pattern and after reaching the resistance line, they show a decline. Technical indicators remain in the state of a sell signal, which is still very weak: the range of EMA fluctuations on the alligator indicator is directed down, and the histogram of the AO oscillator is in the sales zone.

Support levels: 7361, 7020 | Resistance levels: 7670, 7900​

 

[SOLIDECN]

The leading index of the US economy, the S&P 500, is correcting downwards, being under pressure from the upward dynamics in the bond market, and is now trading at 4083.5.

The publication period for corporate reports ends, and its results rather disappointed investors. Among the companies that presented their data at the end of last week, the main competitor of Tesla Inc., the American electric car manufacturer Lucid Group Inc. is worth noting. The issuer increased quarterly revenue to 57.68M dollars, which exceeds 26.39M dollars, received in the previous quarter, and 313K dollars in 2021. Earnings per share narrowly missed the positive zone, stopping at –0.05 dollars, which is much better than the loss of –0.64 dollars a quarter earlier. Positive dynamics develop due to the growing demand for the luxury model of the Lucid Air electric car. The company's customers have already reserved more than 30K cars, which will bring the company revenue of about 2.9B dollars.

Serious pressure on risky assets is exerted by the situation in the domestic bond market. For example, the popular 10-year Treasury reached an all-time fall 2018 all-time high of 3.142%, rising from 2.950% in a week, while 20-year bonds are trading at a yield of 3.4606%, which is higher than the 3.2214% shown at the beginning of the month. Only annual bonds did not grow over the past week. Its yield is 2.106%.

The index quotes are traded in a global downward channel, falling towards the support line. Technical indicators hold a global sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram is trading in the sell zone, forming down bars.

Resistance levels: 4280, 4590 | Support levels: 4000, 3800​

 

[Solid ECN]

The Australian stock market continues to trade in a downtrend after releasing poor financial data on major components and growth in the bond market. At the moment, the ASX 200 index is declining around 7038.0.

Corporate reporting remains ambiguous. Thus, the investment bank Macquarie Group Ltd. reported quarterly revenue of 10.80B AUD, well above the forecast of 7.90B, while advertising giant REA Group Ltd. reported revenue of just 278M AUD, below the forecast of 284.8M AUD, and the indicator of the previous quarter of 326.4M. Thus, given that most market participants have already presented their results, support for the index from this segment is not expected, and the main attention of investors will now be turned to the dynamics of bonds.

The global growth in the securities market, preventing the recovery of ASX 200 quotes, continues. So, during today's trading, the yield of popular 10-year bonds of Australia reaches 3.545%, and the rate of return on conservative 20-year bonds is 3.884%, increasing by 1.24% relative to the beginning of the week. Short-term instruments demonstrate more restrained growth, and annual papers are traded with a yield of 2.071%.

The price of the asset moves within the global side channel, approaching the support line. Technical indicators keep a stable sell signal: fast EMAs of the alligator indicator are below the signal line, and the AO oscillator histogram is deep in the sell zone, continuing to form downward bars.

Support levels: 6900, 6500 | Resistance levels: 7175, 7620​

 

[Solid ECN]

The shares of Snap Inc., the American company that owns the Snapchat messaging service, are falling around 21.

On the daily chart of the asset, a global downtrend is forming, within which the price began to implement the Triangle pattern: the support line at 32 was successfully broken, and now, sell positions can be active.

On a four-hour chart, the price renewed the year's minimum at 24, and now, the main target for the downward movement is around 12.

Technical indicators confirm the high probability of continuing the global decline, maintaining a stable sell signal: indicator Alligator's EMA fluctuations range actively expands downwards, and the histogram of the AO oscillator grows in the sell zone.

 

[Solid ECN]

One of the leading US indices, the Nasdaq 100, shows a downward trend, breaking another yearly low, after the release of macroeconomic statistics on consumer prices in the US. At the moment, the quotes of the instrument are traded at 11865.

Thus, in April, inflation in the country slightly weakened, reaching 8.3% compared to the previous month's value of 8.5%, although analysts expected a decline to 8.1%. Also, fears remain that the March high was not an all-time high and, given the easing of coronavirus pressure in China, energy prices may correct upwards, which will increase inflation, forcing the US Federal Reserve to raise interest rates again more aggressively, thereby putting pressure on technology companies.

Yesterday, the financial statements of the components of the index were published – the manufacturer of video games Electronic Arts Inc., and shale oil company Occidental Petroleum Corp. Quarterly revenue of Electronic Arts Inc. was 1.75B dollars, which was also lower than the 1.77B dollars forecast and 2.58B dollars reported in the previous quarter, resulting in a drop in earnings per share to 1.32 dollars from 3.17 dollars. Occidental Petroleum Corp. pleased investors. The company increased quarterly revenue to 8.35B dollars from 7.91B dollars in the previous quarter, and earnings per share were recorded at 2.12 dollars, up from 1.48 dollars a quarter earlier.

The index quotes form a global downward channel, reaching the support line. Technical indicators are in the state of a stable sell signal: indicator Alligator's EMA fluctuations range expands downwards, and the histogram of the AO oscillator trades in the sell zone, forming down bars.

Resistance levels: 12800, 14280 | Support levels: 11680, 10600​

 

[SOLIDECN]

The shares of Dupont De Nemours Inc., one of the world's largest chemical companies, are trading lower at 63.

On the daily chart, the price left the global sideways channel of 68 - 85, breaking the support line at 68, after which it consolidated in a downtrend, forming the necessary reverse test. On the four-hour chart, the current decline is developing within the downwards channel, and the quotes approached the support line, which runs around the level of 60.

Technical indicators confirm a high probability of further decline, maintaining a stable sell signal: fast EMAs on the Alligator indicator are well below the signal line, and the AO oscillator histogram is trading deep in the sell zone.

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