Technical Analysis Report – 04 August 2022

Technical Analysis Report – 04 August 2022

Technical Analysis

BULLISH BETS ON STOCKS AFTER POSITIVE QUARTERLY RESULTS

Asia-Pacific stocks rose in a choppy session on Thursday. The Shanghai Composite is up 0.48% at 3,178.47. Overall, the Singapore MSCI is up 1.41% at 302.60. Over in Hong Kong, the Hang Seng Index is up 1.71% at 20,072.00. In Japan, the Nikkei 225 is up 0.87% at 27,950.00, while the Topix index is up 0.34% at 1934.00. South Korea’s Kospi is up 0.47% at 2,473.11. Australia S&P/ASX 200 down 0.01% at 6974.90.

Top News of the Day:

The Dow jumped Wednesday, as better-than-expected economic data and mostly positive quarterly results stoked bullish bets on stocks. The services ISM climbed to 56.7 in July from 55.3 the prior month, topping economists’ forecasts for a reading of 53.5.

The Dow Jones Industrial Average gained 1.3%, or 416 points, the Nasdaq was up 2.6%, and the S&P 500 rose 1.5%.

Market Summary as per 03/08/2022:

European equities Wednesday closing. The DAX futures contract in Germany traded up 1.03% at 13,587.56, CAC 40 futures up 0.97% at 6472.07 and the UK 100 futures contract in the U.K. up 0.49% at 7,445.67.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 1.29% at 32812.51. The S&P 500 up 1.56% at 4155.17 and the Nasdaq 100 up 2.73% at 13253.26, NYSE closes up 0.69% at 15267.16

Top Market News Today:

In the Forex market, GBPUSD up 0.02% at 1.2146. The USDJPY up 0.23% at 134.158. The USDCHF up 0.10% at 0.9613. EURUSD up 0.07% at 1.0170, EUR/GBP up 0.08% at 0.8372. The USD/CNY down 0.06% at 6.7532 at the time of writing.

In the Commodity market U.S. Gold futures up 0.39% at $1,771.90. Elsewhere, Silver futures flat at $20.040 per ounce, Platinum down 0.39% at $897.00 per ounce, and Palladium down 0.35% at $2014.00.

Crude Oil down on Thursday; Brent Crude Oil down 0.21% at $96.79 per barrel while U.S. West Texas Intermediate (CLc1) down 0.11% at $90.17.

In the Cryptocurrency Markets, Bitcoin at 22916.84 up 0.39%, Ethereum up 0.41% at 1625.62, Litecoin at 58.39 up 1.02%, at the time of writing.

Top Market Segment to Watch Out Today:

Bayer: Agriculture and pharmaceuticals company Bayer (OTC:BAYRY) on Thursday lifted its 2022 earnings guidance on strong demand from farmers for its seeds and crop chemicals and higher sales of consumer health products.

Bayer is now targeting earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for special items, of about 13 billion euros ($13.21 billion), based on June 30 foreign exchange rates, where it had previously predicted about 12 billion euros, it said in a statement.

Economic News:

US: A $430 billion drug pricing, energy and tax bill that Democrats hope to fast-track through the U.S. Senate would decrease the federal deficit by a net $101.5 billion over the next decade, the nonpartisan Congressional Budget Office said on Wednesday.

The official CBO forecast is only about one-third of the $300 billion in deficit reduction predicted by Senate Democrats. The CBO estimate did not include a $204 billion tax revenue gain expected from increased Internal Revenue Service enforcement, due to congressional guidelines.

The bill known as the Inflation Reduction Act, introduced last week by Senate Majority Leader Chuck Schumer and Democratic Senator Joe Manchin, represents a key priority for Democrats and President Joe Biden ahead of November’s election battle for control of the U.S. Congress.

With the 100-seat Senate split 50-50, Democrats plan to pass the bill without Republican support through a parliamentary process known as reconciliation.

But they cannot afford to lose support from a single lawmaker and one Democrat, Senator Kyrsten Sinema, has not voiced her position on the bill.

Eurozone: France’s parliament on Wednesday approved a bill that will lift pensions and allow companies to make higher tax-free bonus payments to employees after President Emmanuel Macron promised to boost household purchasing power amid soaring inflation.

With the final vote in the lower house, Macron passed a test of his ability to strike cross-party compromises after losing his absolute majority in June legislative elections.

With households struggling in the face of spiralling inflation, the government had been under pressure to pass the 20-billion-euro ($20.37 billion) package quickly. The surging cost of living pushed voters to the far right and hard left in this year’s elections.

“This text responds to the urgency of the situation and the needs of the people,” said Christine Le Nabour, a lawmaker from Macron’s Renaissance party.

The assembly voted 395-112 in favour of the legislation.

Top Economic Releases Today:

  1. U.S. Initial Jobless Claims today at 8:30 this time estimated 259K, previously which was 256K. 
  2. CANADA Trade Balance (Jun) today at 8:30 this time estimated 4.80B, previously which was 5.32B.
  3. JAPAN Household Spending (YoY) (Jun) today at 19:30 this time estimated 1.5%, previously which was -0.5%.
  4. U.K. BoE Interest Rate Decision (Aug) today at 7:00 this time estimated 1.75%, previously which was 1.25%.
  5. GERMANY Factory Orders (MoM) (Jun) today at 2:00 this time estimated -0.80%, previously which was -0.20%.

TECHNICAL SUMMARY

GBPUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 1.2171, TAKE PROFIT AT 1.2205 AND STOP LOSS AT 1.2122

EURUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 1.0177, TAKE PROFIT AT 1.0153 AND STOP LOSS AT 1.0199

USDJPY

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 134.143, TAKE PROFIT AT 133.535 AND STOP LOSS AT 134.595

USDCHF

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 0.9608, TAKE PROFIT AT 0.9565 AND STOP LOSS AT 0.9657

S&P 200

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 6894.00 TAKE PROFIT AT 6918.00 AND STOP LOSS AT 6859.00

WTI CRUDE OIL

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 90.78 TAKE PROFIT AT 88.87 AND STOP LOSS AT 92.94

GOLD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 1774.50, TAKE PROFIT AT 1806.71 AND STOP AT 1753.70

LITECOIN

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 57.12 TAKE PROFIT AT 59.44 AND STOP AT 55.13

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