Indices Updates by Solid ECN

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The shares of Bank of America, the largest financial conglomerate in the US, are moving within the corrective trend of around 34.

On the daily chart, the price has left the global downward channel with dynamic boundaries at 27 – 33 and is trying to stay within the corrective trend that began after overcoming the initial 23.6% Fibonacci correction at 34.7. On the four-hour chart, it is seen that the upward impulse has high prospects for implementation. However, they are relevant only after the quotes reconsolidation above 34.70.

Technical indicators keep a buy signal: indicator Alligator’s EMA oscillation range is directed upwards, although it is narrowing, and the histogram of the AO oscillator forms downward bars in the buying zone.​

 

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GBPUSD - Quotes have overcome all obstacles on the way to the 2020 minimum​

Inflation in the UK reached 10.1% in annual terms, and the Nationwide house price index in August was 10.0%, and over the winter period, according to many analysts, they can grow even more. In addition, the yield of 10-year British bonds increased by more than 90 basis points, and 2-year securities — by 100 basis points.

An additional negative factor for the pound remains the political uncertainty caused by the election of a new leader of the Conservative Party and the Prime Minister of the country. Foreign Minister Liz Truss and former Chancellor of the Exchequer Rishi Sunak are running for the post, and the name of the winner will be announced early next week. The reaction of the British currency to the results can be unpredictable, so investors are currently continuing to monitor the rhetoric of both candidates.

In turn, the USD is strengthening due to the tightening of the monetary policy of the US Fed. Investors' attention will be focused on the August data on changes in the number of people employed in the non-agricultural sector, which will be published on Friday at 14:30 (GMT+2). It is expected that the indicator will be adjusted from 528.0K to 300.0K. If the actual value turns out to be close to the forecast or exceeds it, then the USD is likely to continue to strengthen.

The long-term trend is downward. Market participants have broken down the support area of 1.1768–1.1695 and the next target is to update the 2020 minimum in the area of 1.1440.

Within the framework of the mid–term downtrend, market participants have reached the target zone 2 (1.1572–1.1536), in the event of a breakdown of which the decline is likely to continue with a target in target zone 3 (1.1212-1.1176). The key resistance of the trend is shifting to 1.1964–1.1928.

Resistance levels: 1.1695, 1.1768 | Support levels: 1.144, 1.13​

 

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Shares of Visa, America's largest multinational payment services company, are correcting at 198.

On the daily chart, a global Triangle pattern with dynamically narrowing boundaries at 185 – 217 is developing, and at the moment, the price is heading towards the support line. On the four-hour chart, it is seen that the even down wave has a high potential for implementation since the only serious obstacle in the form of support around 200 has already been overcome by now, and quotes have headed towards the support line around 185.

Technical indicators confirm a sell signal: indicator Alligator's EMA oscillation range is directed downwards, and the AO oscillator histogram forms downward bars.​

 

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NI 225 - Japanese bond market continues strong growth​

The asset loses value after the publication of data on household spending, reflecting a decrease of 1.4% in monthly terms. Nevertheless, tomorrow the direction of movement of quotations may change after the statistics on the gross domestic product (GDP) of Japan are presented. Preliminary estimates are quite optimistic: analysts assume that the indicator will add 0.7% in Q2, thereby supporting the growth of annual GDP by 2.9% compared to the previous estimate of 2.2%.

In the domestic bond market, an auction was held this week to place long-term 30-year stocks at a rate of 1.235%, exceeding the previous 1.119%, which confirms a serious trend towards strengthening the debt market. As for the current dynamics, 5-year treasury securities added 50.00%, 9-year ones — 7.92%, and global 20-year ones — 3.76%.

On the daily chart of the asset, the price remains within the local ascending channel, declining in the direction of the support line. Technical indicators have already reversed and issued a sell signal: the histogram of the AO oscillator is declining in the sales zone, forming new descending bars, and the fast EMAs on the alligator indicator are below the signal line.

Support levels: 27240, 26000 | Resistance levels: 27870, 29100​

 

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Walmart​

Shares of Walmart, the US company that operates the world's largest wholesale and retail chain, are moving around 135.

On the daily chart, after reaching the support line at 130, the price reversed and began to correct, forming a local channel with boundaries of 130–145. On the 4-hour chart, the uptrend has a high chance of continuation as the underlying Fibonacci 38.2% retracement at 134.20 was easily overcome. The next resistance is an intermediate Fibonacci 50.0% correction at 139.3, which will become the target for local growth.

Technical indicators confirm the upward momentum: fast EMAs on the Alligator indicator are above the signal line, and the AO oscillator histogram has formed an upward bar in the buying zone.​

 

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The Home Depot​

On the daily chart, the correction is developing within a wide corridor with dynamic boundaries of 350 – 290.

On the four-hour chart, after reaching the support line, the quotes reversed upwards, breaking the initial correction level of 23.6% Fibonacci around 298. Holding the trading instrument above it is a key factor for the continuation of the upward trend, the target of which is the Fibonacci 61.8% retracement level at 315.

Technical indicators are weakening the sell signal: the Alligator indicator's EMA oscillation range narrows actively, and the histogram of the AO oscillator, trading in the sell zone, forms new rising bars.​

 

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Shares of Pfizer, the largest US pharmaceutical company, are trading around 48. On the daily chart, a global corrective trend is forming, and the price is clamped within the Triangle pattern with dynamic boundaries of 45 – 51.

On the four-hour chart, it is seen that the local decline ended with the support line at 45, after which a reversal was formed, and the quotes of the trading instrument are heading towards the resistance line at 50.3. Taking into account the lengths of local waves, the moment of the pattern implementation will not come soon, and the asset is expected to decline after the end of the current upward impulse.

At the moment, fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram is forming up bars in the sell zone.​

 

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ASX 200 - Australian stock market continues to decline​

The leading index of the Australian economy, the ASX 200, is trading around 6840, being under pressure from the increasing upward dynamics in the bond market: the yield of popular 10-year treasury securities adjusted to 3.657% from 3.56%, conservative 20-year ones – to 3.95% from 3.884%, and global 30-year ones – to 3.921%. from 3.856%.

In turn, the Australian labor market shows positive results, which, however, could not reverse the current trend in the asset: the total number of jobs in Q2 increased by 2.5% to 15.5M, and the number of filled vacancies — by 2.2%, amounting to 15.0M, while the share of unfilled positions reached 3.1%. The number of residents of the country occupying several jobs also increased to 898.9K, exceeding the figure of Q1 by 4.3%.

The asset is held in the ascending channel, having reached the support line. Technical indicators have reversed and given a signal for the start of active sales: the fast EMAs of the alligator indicator are below the signal line, and the histogram of the AO oscillator forms ascending bars while being deep in the sales zone.

Support levels: 6754, 6577 | Resistance levels: 6917, 7130​

 

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Apple - technical analysis​

On the daily chart, the quotes remain within the global Expanding formation pattern, forming a new downward wave, which has already almost reached its intermediate target at the 61.8% Fibonacci full retracement around 146. On the four-hour chart, it can be seen that the current movement is developing according to the classical structure. After rebounding from the initial correction of 23.6% Fibonacci around 163.8, the price continued its global decline, almost breaking the intermediate correction of 50.0% Fibonacci around 151.50, which is key support for the current trend.

Technical indicators confirm the high probability of continued decline: the Alligator indicator's EMA oscillation range expands downwards, and the histogram of the AO oscillator forms downward bars in the sell zone.​

 

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Nasdaq 100 - The US stock market continues to decline​

One of the world's leading express delivery companies, FedEx Corp., published a preliminary report on the results of the first quarter of fiscal year 2023, saying that its revenue in the period from June to August could fall to 23.2 billion dollars, which is 300.0 million dollars below the forecast. In turn, earnings per share will be around 3.33 dollars, well below the forecast of 5.14 dollars. In addition, the Chief Financial Officer of General Electric Co. Carolina Dybek Happe said that problems in the supply chains of goods remain, and this can have a negative impact on the company's performance in the current quarter.

The index quotes are trading within the wide downward channel, declining towards the support line. Technical indicators maintain a steady sell signal: fast EMAs on the Alligator indicator are moving away from the signal line, and the AO oscillator histogram has formed several new descending bars.

Support levels: 11550, 11000 | Resistance levels: 12178, 12900​

 

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DAX 40 - German stock market remains under pressure​

The day before, the Association of German Banks (BDB) published an updated forecast for the economic development of Germany, which turned out to be much worse than previous estimates released in the spring. The Association assumes that Germany's Gross Domestic Product (GDP) will increase by 1.4% in 2022 (previously expected to grow by 2.2%), and consumer prices could add 8.0% this year and 6.2% in 2023. In addition, the forecast for Household Spending is also pessimistic, which could rise by 3.3% this year and then decline marginally by 1.2% next year.

On the daily chart of the asset, the price is trading within a Triangle pattern, approaching the support line. Technical indicators have already reversed to the downside and are strengthening the signal: fast EMAs on the Alligator indicator are moving away from the signal line, and the AO oscillator histogram, having moved to the sell zone, continues forming descending bars.

Support levels: 12370, 11900 | Resistance levels: 12900, 13450​

 

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CAC 40 - French stock market continues to decline​

Weak Friday statistics acted as a driver of the instrument's decline. The French Manufacturing PMI in September fell from 50.6 points to 47.8 points, and the Services PMI was 53.0 points. In turn, the Manufacturing PMI of the eurozone fell from 49.6 points to 48.5 points, which led to a correction of the Composite PMI from 48.9 points to 48.2 points.

The upward dynamics in the domestic bond market continues. Today, auctions will be held to place short-term bills, the rate on which may exceed the previous one. In turn, the popular 10-year bonds are trading at a rate of 2.597%, exceeding the 2.442% shown last week. Global 20-year securities continue to grow, and the rate on them exceeded the peak values of mid-summer at the level of 2.724%, amounting to 2.754%.

Quotes of the asset continue to show an active decline. Technical indicators strengthen the sell signal: fast EMAs on the Alligator indicator are moving away from the signal line, and the AO oscillator histogram, being in the sell zone, continues to form descending bars.

Support levels: 5700, 5500 | Resistance levels: 5835, 6125​

 

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DAX 40 - German stock market remains under pressure​

Despite the fact that the leading stock indicators of the Eurozone showed strong growth in yesterday's trading, the German market index was able to interrupt its global decline only briefly, and now the DAX 40 is correcting down, trading at 12140.

The upward dynamics was a reaction to the rhetoric of the President of the European Central Bank (ECB) Christine Lagarde, who announced an increase in interest rates at at least three subsequent meetings of the regulator. At the same time, the GfK Group published October data on the indicator of Consumer Confidence in Germany, which is the leading indicator. The value turned out to be the worst in the history of observations, dropping to -42.5 points from -36.8 points in September, which was the main reason for the negative dynamics of the DAX 40 index.

On the daily chart of the asset, the price is trading within the global descending channel, falling towards the support line. Technical indicators have been holding a sell signal for a long time: fast EMAs on the Alligator indicator are moving away from the signal line, and the AO oscillator histogram, having moved into the sell zone, continues to form downward bars.

Support levels: 11850, 11200 | Resistance levels: 12400, 13060​

 

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Nasdaq 100 - Technical analysis​

Currently, the instrument is attempting a correction, but for its serious development, the price will have to consolidate above the resistance zone 11725−11875 (Fibo retracement 50%, Murray [2/8]). In this case, the upward dynamics will strengthen to the levels of 12500 (Murray [4/8]) and 12812.5 (Murray [5/8], Fibo retracement 38.2%), however, if the reverse consolidation is below the level of 11250 (Murray [0/8]), the decline may resume in the area of 10937.5 (Murray [-1/8]) and 10625 (Murray [-2/8], Fibo retracement 61.8%).

Technical indicators signal the continuation of the downward trend: the Bollinger Bands are directed downwards, the MACD histogram is stable in the negative zone, while the Stochastic has reversed upwards, not excluding the continuation of corrective growth, but its potential is seen to be limited.

Resistance levels: 11725, 11875, 12500, 12812.5 | Support levels: 11250, 10937.5, 10625​

 

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IBM gives in to negative pressures​

IBM's stock skidded in the intraday levels after the company announced an investment of $20 million in New York in PC devices, hybrid cloud services, AI, and quantum computers, with the stock sliding 2.79%, and settling at 122.23, with trading volumes surpassing 5 million shares, above 10-day averages of 4.4 million shares.

Technically, the stock is hurt by negative pressure from the 50-day SMA, while hurt by piercing the upward trend line recently in the short term, as the RSI reached overbought levels. Therefore we expect more losses for the stock, targeting the first resistance at 118.80, provided the resistance of 126.30 held on.

Expected trend for today: Bearish​

 

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DAX 40 - German stock market corrects upwards​

The upward dynamics is fixed against the background of the publication of corporate reports and strong macroeconomic statistics. The index of Economic Expectations in Germany from the Center for European Economic Research (ZEW) corrected to -59.2 points from -61.9 points earlier, and this was the first increase in the index since June. In turn, shares of automakers are actively adding in value after the release of a report on car sales in the EU, which showed growth in September by 9.6% compared to last year. This may be a signal for the start of the recovery of the auto industry after 13 months of stagnation.

On the daily chart of the asset, the price is trading within the global descending channel, rising towards the resistance line. Technical indicators are about to reverse and give a buy signal: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram has reached the transition level, preparing to move into the buying zone.

Support levels: 12580, 11930 | Resistance levels: 13100, 13560​

 

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S & P 500 - The US stock market is trying to recover​

At the moment, major market participants are publishing corporate financial statements, which are not as positive as experts expected. According to the analytical agency Refinitiv, the profit of 88 companies that reported for the past quarter decreased by an average of 2.6%. The biggest loser on Friday was stocks of Snap Inc., owner of the Snapchat, which shed more than 30.0% amid historically low revenue growth of 6.0% year-on-year. The focus of increased attention of investors is also Twitter Inc., in which the administration of the President of the United States showed interest in terms of initiating possible checks. Telecom operator Verizon Inc., which reported a 24.0% drop in third-quarter net income, is also trading below the market.

The index quotes continued the local corrective trend, forming a Head and Shoulders reversal pattern. Technical indicators keep the sell signal, which has noticeably weakened recently: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram is forming upward bars being in the sale zone.

Support levels: 3665, 3495 | Resistance levels: 3810, 3980​

 

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FTSE 100 - Results of the elections in the UK pushed the index up​

The day before, Rishi Sunak was appointed the new Prime Minister and head of the Conservative Party with 178 of the 355 members of the Conservative faction in the House of Commons having voted for him. The official managed the British economy during the coronavirus pandemic and analysts believe that he is able to lead the country out of the current crisis. Probably, this news has already been taken into account by the market, since even the negative effect of the publication of a report on business activity, which showed a decrease from 48.4 points to 45.8 points in the Manufacturing sector and from 50 points to 47.5 points in the Services sector could not put pressure on the dynamics of the pound.

Quotes of the index continue to try to start corrective growth. Technical indicators are holding a sell signal, which has noticeably weakened recently.

Support levels: 6920, 6710 | Resistance levels: 7090, 7270​

 

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Dow Jones - Correction after the publication of corporate reports​

US stock indicators took advantage of the slowdown in the bond market and continue to grow on the back of positive corporate reporting. Now the quotes of the Dow Jones index are being corrected in the area of 31783.

Index quotes continue corrective dynamics, rising in the direction of the global channel resistance line.

Technical indicators are holding a buy signal, which is gradually strengthening: 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: 31150, 29670 | Resistance levels: 32500, 34200​

 

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S&P 500 - US stock market continues to recover​

The American market continues to correct against the backdrop of corporate reporting and positive expectations of investors regarding a possible reduction in inflation. The S&P 500 is currently trading at 3898.

Experts predict a slowdown in consumer price growth in the US, which will allow the stock market to continue its upward correction. Mike Wilson, a leading analyst at Morgan Stanley banking holding, believes that against this background, S&P 500 quotes may overcome 4100.0 in the near future, as the M2 money supply has fallen sharply over the past month. The analyst is confident that the results of tomorrow's meeting of the US Federal Reserve will also be a catalyst for the upward dynamics in the asset, at which, most likely, a decision will be made on the next increase in interest rates by 75 basis points.

The index quotes continued the local corrective trend, taking a lead from a Head and Shoulders reversal pattern.

Technical indicators maintain the 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 ascending bars.

Support levels: 3830, 3630 | Resistance levels: 3950, 4120​