Indices Updates by Solid ECN

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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​

 

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The German stock market shows a slight corrective growth against the backdrop of positive reporting and a decline in the bond market. At the moment, the leading index of the Frankfurt Stock Exchange DAX 30 is being corrected, trading at around 13600.

The day before, investors watched the release of the financial results of Bayer AG, which reported earnings per share of 3.53 euros, which greatly exceeded the previous quarter's figure of 1.26 euros and exceeded the forecast of 2.96 euros. In turn, the company's revenue for the first time since 2015 amounted to 14.64 billion euros, which turned out to be much better than the expected 13.82 billion euros, and also exceeded the figure of the previous quarter at the level of 11.12 billion euros.

In addition, the recent correction in the domestic bond market may contribute to the local growth of the index. Thus, 10-year German Treasuries are trading at a yield of 1.0105%, down from 1.1370% at the end of last week. The conservative 20-year bonds are trading at 1.117%, below the 1.200% shown on Friday.

On the global chart of the asset, the price forms a local Flag pattern, the implementation of which may lead to a continuation of corrective growth. Technical indicators maintain a sell signal: the range of EMA fluctuations on the Alligator indicator is still wide, and the AO oscillator histogram is forming descending bars being near the transition level.

Support levels: 13275, 12420 | Resistance levels: 14240, 15100​

 

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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.

 

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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​

 

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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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One of the leading indexes of the American economy Dow Jones moves downward around 32080.

The main news of the past week was the statement of the head of Tesla Inc., Elon Musk, that the deal to buy the social network Twitter is temporarily suspended due to verification of data confirming calculations that fake accounts make up no more than 5% of the total number of daily active users. Shares of the service immediately reacted to this with a drop of 25%, although they later partially recouped losses after the entrepreneur, in a new tweet, said that he still intends to complete the deal.

Meanwhile, the yield on the popular 10-year government bonds fell to 2.908% late last week, while the conservative 20-year notes lost just over 1.00% and are now trading at 3.3057%, which is still quite high, so the negative pressure on the stock market remains.

The asset moves within a wide downward channel, approaching the support line. Technical indicators maintain a stable sell signal: indicator Alligator’s EMA fluctuations range is actively expanding, and the histogram of the AO oscillator is forming new downward bars in the sell zone.

Resistance levels: 32550, 34100 | Support levels: 31620, 30000​

 

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On the daily chart, the price is falling within a narrow downwards channel, gradually approaching the support line. The key support is the channel's lower line, which coincides with the initial 61.8% Fibonacci extension trend level at 41.

On the 4-hour chart of the asset, it is clear that the global decline will continue, and the channel support line is only an initial target. The global downside target is the underlying trend of 100.0% for the Fibonacci expansion, around 29. Technical indicators also confirm the high probability of further decline: fast EMAs on the Alligator indicator are much lower than the signal line, and the AO oscillator histogram is forming downward bars in the sell zone.

 

[SOLIDECN]

Visa, technical analysis​

The shares of Visa Inc. Class A, the largest American multinational company providing payment transaction services, are corrected at 203.00.

On the daily chart of the asset, a global side channel is developing with the boundaries of 189 - 235, and at the moment, the price has reversed upwards from its support line.

Primary signs of a reversal appeared on the four-hour chart: the price has broken the local resistance around 200.00. Technical indicators also point to a high probability of continued growth: indicator Alligator’s EMA fluctuations range began to actively narrow, fast EMAs are approaching the signal line, and the AO oscillator histogram began to form new rising bars in the sell zone.

 

[SOLIDECN]

One of the leading indexes of the European economy, CAC 40, is correcting, trading at the level of 6288.0. The French stock market is falling on the back of a recovery of positive dynamics in the bond market, and even positive reports of large components are not able to reverse the negative trend.

The day before, a large energy company Engie SA published its financial results. The company's Q1 2022 revenue rose sharply to 25.6 billion euros, well above the forecast of 14.28 billion euros. Earnings per share increased to 0.62 euros from 0.3995 euros a quarter earlier. In turn, the report of one of the largest European stock exchanges Euronext NV showed an increase in the company's income to 395.7 million euros, which exceeded 370.1 million euros a quarter earlier. At the same time, earnings per share were worse than expected and amounted to 1.35 euros against the expected 1.45 euros.

The French bond market is again showing positive dynamics. Popular 10-year bonds have returned to growth and are trading at a rate of 1.518%, while conservative 20-year treasury bonds have reached a yield of 1.855%, which is slightly behind the peak values at the beginning of the month at 1.945%.

The index quotes are traded within the global downtrend, continuing to fall along the resistance line. Technical indicators are holding a local sell signal: the range of EMA fluctuations on the Alligator indicator is still wide enough and the AO oscillator histogram, trading in the sales area, is forming ascending bars.

Support levels: 6065, 5750 | Resistance levels: 6530, 6800​

 

[SOLIDECN]

The shares of Tesla Inc., the world's leading manufacturer of electric cars, continue their global correction, trading at 709.

On the daily chart of the asset, the price is moving within the global Expanding formation pattern with dynamic extremes at 1150–500. At the moment, the instrument is forming the fifth wave of the pattern, which is one of the two most probable waves.

On the four-hour chart, the rate can already break the low of the third wave at 700.00 today, which will be a signal to continue the downward movement. The readings of technical indicators confirm the likelihood of a decline: fast EMAs on the Alligator indicator are actively moving away from the signal line, and the AO oscillator histogram is forming bars with a downward trend in the sell zone.

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[SOLIDECN]

Global sideways correction in the shares of the American diversified corporation General Electric Co. strengthens, and papers are traded slightly above 75.

On the daily chart of the asset, a wide downward channel with dynamic boundaries of 71 - 90 forms, within which the price has reached the support line and renewed the year’s low around 71.

On the four-hour chart, the price is heading upwards and begins to form a Head and shoulders reversal pattern, which target for working out is around the global channel resistance line 90. The readings of technical indicators confirm the high probability of upward dynamics: fast EMAs on the Alligator indicator are actively approaching the signal line, and the AO oscillator histogram is forming new rising bars in the sell zone.

 

[SOLIDECN]

Nasdaq 100 quotes show a downtrend, being at around 11970.0. US stocks remain under strong pressure from rising bond yields, which is especially affecting technology stocks.

Since the start of the week, the popular 10-year US Treasury bonds yield has risen 1.34% to hit the levels of autumn 2018 of around 2.824%. Conservative 20-year government bonds rose 0.92% to 3.2094%, while short-term 3-month bonds, which will be auctioned today, rose 2.48%.

The focus today is on the financial results of discount department store chain Ross Stores Inc., which recorded a decline in quarterly revenue to 4.33 billion from 5.02 billion dollars in Q4 2021. In turn, earnings per share fell below 1 dollar for the first time since March 2021, to 0.97 dollars. Against the background of such a weak report, the issuer's capitalization decreased by more than 22%.

Index quotes form a global downward channel, being near the support line. Technical indicators are in a stable 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 new descending bars.

Support levels: 11690, 10500 | Resistance levels: 12580, 14200​

 

[SOLIDECN]

The shares of Bank of America Corp., one of the largest banks and analytical agencies in the US, are trading within a corrective trend around the level of 36.

On the daily chart of the asset, the price moves within the global downwards channel with dynamic boundaries 29 – 38, declining towards the support line, which coincides with the Fibonacci 61.8% retracement level at 30.

On a four-hour chart, it is clear that to continue the global decline, the instrument needs to consolidate below an intermediate correction of 50.0% Fibonacci around 34. The readings of technical indicators confirm the probability of this scenario: the range of fluctuations of the EMA on the Alligator indicator expands downwards, and the histogram of the AO oscillator forms downward bars in the sell zone.

 

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The shares of Snap Inc., the US company that owns the Snapchat messenger, are moving in a global downtrend around 13.

On the daily chart of the asset, a global downward channel is forming, which emerged from the Triangle pattern, renewing the year's low at 12.8. During yesterday's trading, the instrument formed a downward price gap, making the prospects for upward dynamics practically zero.

On the four-hour chart, it can be seen that although the quotes are near the channel support line, the most likely scenario will be a further decline to the target levels around 4. Technical indicators keep a stable sell signal: indicator Alligator's EMA fluctuations range actively expands downwards, and the histogram of the AO oscillator increases in the sell zone.

 

[SOLIDECN]

The French stock market continues to trade in a local downtrend against the backdrop of negative macroeconomic statistics and weak financial reports of the components. CAC 40 quotes are currently correcting at 6267.

The French Composite PMI was 106 points in May, down from 108.0 points last month, while Manufacturing PMI fell to 54.5 points from 55.7 points and Services PMI fell to 58.4 points from the April value of 58.9 points.

Additional pressure on the stock index was also provided by reports that the joint venture of the French corporation for the production of missile, aerospace and defense components Safran SA and the American giant in the field of manufacturing technological equipment General Electric Co. postponed the release of a new batch of aircraft engines indefinitely, which led to a fall in the company's shares.

Meanwhile, the domestic bond market continues to trade close to the highs of the year, with the popular 10-year Treasuries yielding around 1.488%, down slightly from 1.666% at the beginning of the month, and the conservative 20-year bonds yield at 1.888% after 1.963% shown in early May.

The quotes of the asset are traded as part of a global downtrend, continuing to stay close to the resistance line. Technical indicators continue holding a sell signal: the range of EMA fluctuations on the Alligator indicator is still wide enough and the AO oscillator histogram, trading in the sales area, is forming descending bars.

Support levels: 6200, 5880 | Resistance levels: 6457, 6795​

 

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The shares of Meta Platforms Inc., which owns the world's largest social network Facebook, are trading within a downtrend around 183.

On the daily chart of the asset, a global Triangle pattern is forming with local extremums at 217 and 173, which is a trend continuation pattern, and the breakdown of its lower limit is the most likely scenario now. On a four-hour chart, the trading instrument completes the formation of another downward wave, and after the quotes break the support line at 176, the global decline may continue.

Technical indicators confirm the high probability of negative dynamics reversing downwards: fast EMAs on the Alligator indicator began to move away from the signal line, and the AO oscillator histogram is forming bars with a downward trend in the sell zone.

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[SOLIDECN]

On the daily chart of the asset, a global downward channel is developing, inside which the price has already overcome the multi-year support level of 85.60 and consolidated below it. Trading activity remains very low, and the average daily volatility does not exceed 230 points. On the four-hour chart, the trading instrument shows a downward trend, being near the channel resistance line passing around the level of 80, and the probability of its breakout is extremely small.

Technical indicators confirm the strengthening of the current wave of decline: fast EMAs on the Alligator indicator are kept at a sufficient distance from the signal line, and the AO oscillator histogram is in the sell zone.​

 

[SOLIDECN]

The shares of The Home Depot Inc., the world's largest home improvement company, are actively declining, trading around 302.

On the daily chart of the asset, a global downtrend is forming, within which the price is holding above the resistance line of the first stage of correction, forming a channel with dynamic boundaries 279–317. On a four-hour chart, it can be seen that the downwards channel is a slowdown stage for the global decline, the continuation of which may lead to a change in trend and the price reaching a local maximum at 339.

Technical indicators began to weaken the sell signal: the range of fluctuations of the EMA on the alligator indicator is actively narrowing, and the histogram of the AO oscillator is forming rising bars, quickly approaching the transition level.

 

[SOLIDECN]

The shares of Alibaba Group Holdings Ltd., one of the largest companies in the world in the field of Internet commerce, are correcting, trading at 92. On the daily chart, a wide downwards channel with dynamic boundaries 70–100 is formed, within which the price is held for a long time near the resistance line, unsuccessfully trying to break it.

On the four-hour chart, the local Triangle pattern is formed, the upper border of which coincides with the resistance line of the global channel around 100.

At the moment, there is no clear signal from the indicators for the subsequent movement yet but, given the factor of the pattern, the growth potential prevails: fast EMA on the Alligator indicator is actively approaching the signaling line, and the histogram of the AO indicator forms upward bars.

 

[SOLIDECN]

S&P 500 is correcting upwards against the backdrop of declining bond yields, trading at around 4190. The US stock market received significant support after the recent reports of large companies.

Shares of the American corporation for the production of computers Dell Technologies Inc. remain among the growth leaders on the back of the publication of positive financial results for Q1 2022. The company reported revenue of 26.12 billion dollars, as well as an increase in operating profit to 1.55 billion dollars. Earnings per share also rose significantly to 1.84 dollars.

Shares of Gap Inc., despite the second quarter in a row with a loss, are also corrected upwards. The clothing retailer reported 3.48 billion dollars in revenue, beating analysts' forecasts of 3.44 billion dollars. The company provided a forecast for the next quarter, in which it assumes a profit and fixation of EPS at 0.419 dollars.

The main reason for the growth of US stock markets is a correction in the bond market. The 10-year Treasury yield fell to 2.743% from 2.861% at the end of last week, while the conservative 20-year government bond rate fell to 3.1629% from 3.2606% last week.

The index quotes are traded in a global downward channel, moving towards the resistance line. Technical indicators start to reverse towards growth: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram is forming new upward bars being in the sale zone.

Support levels: 4095, 3857 | Resistance levels: 4283, 4587​