Indices Updates by Solid ECN

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The CAC 40 index is correcting at 6089. The French stock market continues to trade in a local downtrend against the background of the rapid growth of bonds, as well as in anticipation of another increase in domestic inflation.

Tomorrow France will publish data on inflation, which, as analysts suggest, will reflect an increase in the monthly rate of at least 0.7%, which, in turn, will lead to maintaining the annual rate at 5.8%.

The quotes of the asset continue to trade within the global downtrend, falling to the lowest level of the year. Technical indicators are in a sell signal state: the range of EMA fluctuations on the Alligator indicator is expanding towards the decline, and the AO oscillator histogram is trading in the negative area forming descending bars.

Support levels: 5881, 5610 | Resistance levels: 6250, 6569​

 

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Tesla, technical analysis
On the daily chart, the price is within the global Expanding formation pattern, gradually approaching the support line around 550. At the moment, the formation of the fifth downward wave is observed, which has reached the basic trend of 100.0% of the Fibonacci extension around 628.

On a four-hour chart, the local dynamics close within the Triangle pattern with dynamic boundaries of 746 – 628, the location of which confirms the further development of negative dynamics. Fast EMAs on the Alligator indicator continues to move away from the signal line, and the AO oscillator histogram forms bars with a downward trend in the sell zone.​

 

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Nasdaq 100 - Murray analysis
The Nasdaq 100 index continues to move within the long-term downward channel. This week, the price tried to start a corrective growth, having reversed around the level of 11250 ([2/8]), but in the end all the positions won were lost.

The reversal level of 11250.0 is still the key for the "bears". Its breakdown will give the prospect of further decline to the lower limit of the Murray trading range in the area of 10000 ([0/8]). When the level of 11875 ([3/8]) and the middle line of the Bollinger Bands break out (12090), quotes will be able to continue growing within the central Murray channel to the level of 13125 ([5/8]).

Technical indicators do not give a single signal: the Bollinger Bands are directed downwards, the MACD histogram is stable in the negative zone, the Stochastic is directed upwards.

Resistance levels: 12090, 12500, 13125 | Support levels: 11250, 10625, 10000​

 

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Nikkei 225 - technical analysis
H4
On the four-hour chart above the level of 26581.0, there is the formation of the Three Black Crows candlestick analysis pattern, which signals the continuation of the downtrend. Following the quotes, the successive Gravestone Doji patterns formed, which usually appear at the top and are a signal for a price reversal. In the current situation, it is likely that the asset will decline to the support level of 25796, overcoming which will allow the "bears" to reduce the price to the range of 24575–23596. An alternative scenario is possible in case of an impulsive movement of quotes above the resistance level of 26865.0. Then the "bulls" will be able to reverse the situation on the market and start an uptrend in the area of 28263 – 30008.

D1
On the daily chart, there is a Bear Flag price pattern, the construction of which started from the resistance at 28263; however, after reaching the support level of 25796, the "bulls" regained part of the lost positions, reaching the area of 26581.0. However, a warning signal for a price reversal is the formation of a Hanging Man candlestick analysis pattern, which indicates that buyers have lost control over the market. In this situation, most likely, the quotes will continue to decline to the level of 25796, the overcoming of which will serve as a signal for a further downtrend to the level of 23596.

Support levels: 25796, 24575, 23596 | Resistance levels: 26865, 28263, 30008​

 

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DAX 30, H4
On the four-hour chart, there is a lateral movement of the asset within the boundaries of 12829–13323, and at the moment a Bearish Rectangle price pattern is being formed, the exit from which, most likely, can be carried out downwards, as well as a "bearish" Pattern Method of Three Falling, which signals about the continuation of the downtrend. Nevertheless, the growth of quotations is estimated as a probable scenario with a short-term correction to the resistance level of 13323, after which the instrument will resume its decline to the level of 12829. Breaking this level will mean that the Bearish Rectangle price pattern is entering its final stage and the downward movement will intensify into the support zone of 12533–11305. An alternative scenario can be implemented if the "bulls" fix their positions above 13323; then it will be possible to restore the price to the range of 14240–1512.

DAX 30, D1​

On the daily chart, in the area of 13323, a Bearish Engulfing pattern is observed, which indicates that buyers could not hold their positions that day, falling to the level of 12829; however, immediately after it, a Bullish Engulfing pattern formed at the same level, which signals a price reversal at the bottom, although the buyers' attempt was unsuccessful and the model did not receive confirmation of the market's "bullish" mood. The signal for this was the formation of a "bearish" Shooting Star model under the resistance level of 13323. At the moment, the likely scenario is that the asset will fall to the support level of 12533, overcoming which will allow the "bulls" to head lower to the zone of 11947–11305.

Support levels: 12533, 11947, 11305 | Resistance levels: 13323, 14240, 15120​

 

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Dow Jones - US market remains negative​

The pressure on the US stock market continues: despite the positive reporting, large companies predict a future performance decline. For example, microchip manufacturer Micron Technology Inc. reported a 1.5x increase in net income for the current quarter, its revenue was 8.64B dollars, and earnings per share rose to 2.59 dollars from 2.14 dollars a quarter earlier, but the corporation does not expect the same strong results in next reporting period.

Another negative factor is the situation in the domestic bond market: according to yesterday's trading data, the yield of the leading securities began to rise again. So, at the end of last week, the rate on 10-year US Treasuries rose to 2.952% from 2.889%, while the indicator for global 20-year assets increased to 3.4332% from 3.3671% a few days earlier.

The index quotes move within a wide downward channel in the middle of the range. Technical indicators have significantly weakened the sell signal but still hold it: indicator Alligator's EMA oscillation range has narrowed almost completely, and the AO oscillator histogram is forming new downward bars in the sell zone.

Resistance levels: 31915, 33290 - Support levels: 29968, 28312​

 

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FTSE 100 - UK stock market in correction

The UK stock market continues to decline on the background of extremely weak reports of the leading components, which do not allow risky assets to grow during the correction period. At the moment, quotes of the leading London Stock Exchange FTSE 100 index are showing local corrective dynamics, trading at around 7112. In the corporate segment, more and more companies show disappointing results. Supreme Plc. announced a decline in revenue and earnings in 2022 due to falling demand for products, after which the company's shares fell more than 12.7%.

The index quotes are trading within the global lateral channel, declining towards the support line. Technical indicators are in a quite steady sell signal state: the range of EMA fluctuations on the Alligator indicator is directed downwards and the AO oscillator histogram is trading in the sales area forming descending bars.

Support levels: 7011, 6760 | Resistance levels: 7200, 7480​

 

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3M Co - technical analysis​

The shares of 3M Co., an American diversified innovative manufacturing company, traded in a downtrend around 129. On the daily chart, the price is holding in a stable downwards channel with dynamic boundaries 108.00–138.00 and, reversed around at the resistance line, is heading towards support, having renewed the next year's low at 126.

On the four-hour chart, it can be seen that this level coincides with the initial trend of 61.8% for the Fibonacci expansion, the breakdown of which will mean continued global sales with the target at 100.0% for the Fibonacci expansion in the support line of the channel 109. The likely decline is confirmed by the readings of technical indicators that have reversed long ago and keep a stable sell signal: fast EMAs on the Alligator indicator are significantly below the signal line, and the AO oscillator histogram forms bars with a downward trend in the sell zone.​

 

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Nasdaq 100 - the US stock market continues to decline​

At the end of last week, it became known that the head of the electric car company Tesla Inc. Elon Musk is pulling out of a 44 billion dollar deal to buy Twitter Inc. after the latter failed to provide previously requested reports on the number of fake accounts on the platform. In addition, the management of Twitter Inc. announced plans to cut up to 30% of its HR staff due to growing business problems, and company Chairman Bret Taylor said management plans to sue to enforce the merger agreement. Against this background, shares of Twitter Inc. decrease by 4.2%.

Additional pressure on the US stock market is also exerted by the situation in the domestic bond market, the yield of which again began to rise sharply: the rate on the popular 10-year US Treasuries rose to 3.086% from 2.810% at the end of last week, and on the conservative 20-year securities the yield rose up to 3.516% from 3.326%; while the yield on global 30-year debt securities rose to 3.252% from 3.049%.

Index quotes continue to form a global downward channel, declining along the support line. Technical indicators are in a sell signal state: fast EMAs on the Alligator indicator are holding below the signal line despite the sharp narrowing of the range, and the AO oscillator histogram is still trading in the sell zone.

Support levels: 11460, 11100 | Resistance levels: 11800, 12200​

 

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S&P 500 - waiting for US inflation statistics​

The US stock market continues to decline, and yesterday's drop in indices was one of the most dynamic in recent times. First of all, investors' concerns are related to the growth of the consumer price index in the USA, data on which will be presented tomorrow. If the indicator exceeds 9.0%, an emergency increase in the interest rate by 100 basis points from the American financial regulator is not excluded, which could bring down stock markets at the moment, especially the high-tech sector, which traditionally depends on the cost of borrowing.

The index quotes are traded in a global descending channel, being in the middle of the range. Technical indicators continue to hold a stable sell signal: fast EMAs on the alligator indicator are below the signal line, and the histogram of the AO oscillator, holding in the sales zone, forms ascending bars.

Support levels: 3781, 3500 - Resistance levels: 3900, 4151​

 

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S&P 500 - positive momentum after the publication of corporate reports​

One of the world's largest investment banks, a financial conglomerate Goldman Sachs Group, reported income of 11.86 billion dollars, which significantly exceeded the 10.85 billion dollars predicted by analysts. Earnings per share came in at 7.73 dollars amid early market estimates of 6.64 dollars. In turn, the software and consulting services company IBM Corp. showed quarterly revenue of 15.54 billion dollars instead of 15.09 billion dollars expected by experts. Earnings per share came in at 2.31 dollars, also well above the 1.4 dollars reported a quarter ago. The only major market participant that noted negative dynamics in its report was Bank of America Corp.: its revenue fell to 22.69 billion dollars from 22.72 billion dollars and earnings per share were 0.73 dollars, compared to the projected 0.74 dollars.

The index quotes continue to trade in the global downward channel, being in the middle of the range. Technical indicators are holding a steady signal to open short positions: 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 multidirectional bars.

Support levels: 3781, 3600 | Resistance levels: 3916, 4100​

 

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Dow Jones - correction in a local uptrend​

After Monday, when the positive financial data of the main components came out, yesterday's statistics turned out to be not so strong. Johnson & Johnson was the only major company to post a significant improvement in revenue, posting 24.02 billion dollars in quarterly revenue, ahead of the projected 23.8 billion dollars. Industrial concern Lockheed Martin Corp. reported 15.45 billion dollars in revenue, down from the 15.99 billion dollars estimate. A big disappointment for investors was earnings per share, which fell to 1.16 dollars from 6.44 dollars in the previous quarter. American entertainment company Netflix Inc. also worsened the dynamics, noting the income of 7.97 billion dollars instead of the expected 8.03 billion dollars.

Quotes of the index continue to trade within a wide downward channel, approaching the resistance line. Technical indicators have significantly weakened the sell signal and are ready for a reversal: the fluctuation range of the Alligator indicator EMAs has narrowed almost completely, and the histogram of the AO oscillator is forming new upward bars, having approached the transition level.

Support levels: 31260, 29770 | Resistance levels: 32338, 33538​

 

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FTSE 100 - markets awaiting ECB interest rate decision

The focus of investors remains on today's meeting of the European Central Bank (ECB), which is likely to make a decision on the first interest rate increase since 2011. According to analysts' forecasts, the indicator will be corrected by 0.25%, and given that inflation in the eurozone remained at 8.6% in May, this is the most logical decision. The opposite situation is observed in the UK, where macroeconomic data, presented the day before, recorded an acceleration of inflation to 9.4%, reflecting the most rapid pace in the last 40 years. The negative dynamics of indicators will push the officials of the Bank of England to accelerate the pace of tightening monetary parameters, which, in turn, will increase the cost of borrowing for businesses.

Quotes of the trading instrument are traded within the global side channel, being in the middle of the range. Technical indicators are holding a sell signal that remains fairly weak: the fluctuation range of the Alligator indicator EMAs is narrowed almost completely, and the histogram of the AO oscillator is very close to the transition level.

Support levels: 7077, 6825 | Resistance levels: 7357, 7620​

 

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Nasdaq 100 - US stock market corrects​

The corporate segment of the stock market continues to publish financial statements for the second quarter. So, shares of Snap Inc., owner of the Snapchat messenger, became the leader of the fall yesterday, after the net loss per share increased to –0.26 dollars from –0.22 dollars in the previous period. Quarterly revenue also fell short of analysts' expectations, amounting to 1.1B dollars against the forecast of 1.14B dollars. Meanwhile, financial services firm American Express Co. released positive data with revenue of 13.4B dollars, well above its preliminary estimate of 12.5B dollars, while earnings per share of 2.57 dollars improved its forecast from 2.42 dollars.

The index quotes continue to form a global downward channel, rising towards the resistance line. Technical indicators are in a buy signal: fast EMAs on the Alligator indicator are holding above the signal line and expanding the range of fluctuations. At the same time, the AO oscillator histogram steadily rises in the buying zone.

Support levels: 11816, 11087 | Resistance levels: 12688, 13531​

 

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S&P 500 in anticipation of the publication of corporate reports​

Today, several major players in the US market will present data on the results of the second quarter. Thus, the world leader in information technology, software, and IT services, Microsoft Corp., expects revenue growth at 52.43B dollars, higher than 49.36B dollars shown a quarter earlier. In turn, the Alphabet Inc. holding, which owns the Google brand, predicts a figure of 70.04B dollars against 68.01B dollars. Visa Inc. will record quarterly revenue in the region of 7.06B dollars, which is in line with the 7.19B dollars shown in the previous period.

The index quotes are traded within a global downward channel, heading towards the resistance line. Technical indicators keep a stable buy signal: fast EMAs on the Alligator indicator are above the signal line, and the AO oscillator histogram is in the buy zone, continuing to form rising bars.

Support levels: 3907, 3674 | Resistance levels: 4013, 4182​

 

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Visa - Technical analysis​

The shares of Visa Inc., the largest American multinational company that provides payment services, are developing a corrective trend, and the instrument is trading around 209. On the daily chart, a global Diamond pattern with border levels of 187–230 is developing, and at the moment, the price is clamped inside its limits.

On a four-hour chart, a Volumetric candle candlestick analysis pattern appears with local resistance located around 216.60, from where buy positions may be formed, and a support level of 199.9, from which new sell positions may be opened. In case of orientation to the signals of the pattern, the readings of technical indicators do not need to be considered. Still, at the moment, they signal a possible continuation of growth: indicator Alligator's EMA oscillation range is directed upwards, and on the AO oscillator, the histogram is in the buy zone.​

 

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Dow Jones - the US stock market continues upward correction​

Popular booking service Booking Holdings Inc. reported 4.29 billion dollars in revenue, well above the 2.7 billion dollars reported a quarter earlier. Earnings per share were 19.08 dollars compared to 3.9 dollars in the previous quarter. In turn, the quotes of the pharmaceutical giant Moderna Inc. for the second day in a row are among the leaders of growth after the company managed to beat the projected income of 4.07 billion dollars, having shown 4.75 billion dollars. Alibaba Group Holdings Ltd., the global leader in online and mobile commerce, will publish its financial report today, which, according to preliminary forecasts, could show revenue of 204.44 billion dollars, which corresponds to the previous quarter's figure of 204.05 billion dollars.

The index quotes are traded within the wide descending channel, coming close to the resistance line. Technical indicators maintain a steady buy signal: 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.

Support levels: 32400, 30660 | Resistance levels: 33300, 35274​

 

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DAX 30 - German stock market continues its local growth

The day before, financial data were presented by the chemical-industrial group Henkel AG & Co. KGaA, having posted quarterly revenue of 5.64 billion euros, which exceeded the 5.36 billion euros expected by analysts. The EPS was 0.9126 euros, while the forecast was at the level of 0.8813 euros. In turn, one of the largest German food delivery services HelloFresh SE reported income of 1.96 billion euros, which was better than the projected 1.9 billion euros. The EPS figure also beat expectations, amounting to 0.35 euros per share. Finally, HelloFresh SE's main competitor, Delivery Hero SE, reaffirmed its financial targets for 2022, saying it expects turnover growth of around 7% in the third quarter.

On the weekly chart of the asset, the price continues to attempt to consolidate in the uptrend, approaching the resistance line of the downward channel. Technical indicators have already reversed towards growth and issued a buy signal: the fast EMAs of the Alligator indicator are way above the signal line, and the histogram of the AO oscillator, having moved to the buy zone, is forming ascending bars.

Support levels: 13533, 12530 | Resistance levels: 14260, 15070​

 

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S&P 500 - Strong corporate reporting supports the index

The leading US economy index S&P 500 is correcting upwards at around 4261. The US stock market continues to correct, and its dynamics depends on both corporate reporting and the news background, which was supported by yesterday's report by the US Federal Reserve. The authorities of the regulator noted that the tightening of monetary policy will continue, and designated the level of "sufficiency" at which the interest rate will be held for some time; however, the department stressed that this level has not yet been reached.

The day before, Walmart Inc., the largest US retail chain, published its financial report, reflecting the growth in earnings per share to 1.77 dollars from 1.30 dollars a quarter earlier. The company's revenue increased to 152.86 billion dollars from 141.57 billion dollars in the previous quarter. In addition, Home Depot Inc. released its financial results, with revenue up to 43.79 billion dollars from 38.91 billion dollars in the previous quarter, and earnings per share of a record 5.05 dollars, up from 4.09 dollars in the first quarter.

The index quotes are trading above the resistance line of the descending channel, having overcome the resistance line. Technical indicators maintain a steady buy signal: the fast EMAs of the Alligator indicator are above the signal line, and the histogram of the AO oscillator is trading in the buy zone, forming multidirectional bars.
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Support levels: 4182, 3900 | Resistance levels: 4330, 4631

 

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Dow Jones - US stock market started to decline​

The US stock market returned to negative dynamics after the end of the active phase of the publication of financial statements of companies. At the moment, the Dow Jones index is correcting in a local downtrend, trading at 32877.

In the corporate segment, Zoom Video Communications, a company offering cloud-based video conferencing solutions, remains one of the leaders in the decline, whose shares lost more than 16% on the back of a weak quarterly report and subsequent management comments. In particular, a drop in revenues was predicted by the end of the year due to the lifting of quarantine restrictions and the return of users to offices and, as a result, a decrease in demand for online communication services. Another event that could have an impact on the US stock market is the annual economic symposium at Jackson Hole, which kicks off tomorrow. Traders hope to get more clarification about the implementation of the plan to raise interest rates and further actions of the financial authorities to reduce the rapid pace of inflation from US Federal Reserve Chairman Jerome Powell.

The index quotes have left the boundaries of a wide downward channel, having overcome the resistance line, but at the moment they are approaching the broken level again. Technical indicators, which were steadily pointing to growth, began to actively reverse: the fluctuation range of the Alligator indicator EMAs is actively narrowing, and the histogram of the AO oscillator is forming new descending bars, being in the buy zone.

Support levels: 32561, 31245 | Resistance levels: 33296, 34300​