Technical Analysis Report

21 Jul

Technical Analysis Report – 21 July 2022

/ CSFX Analytics

Dow Futures Relieve After Major Indices Continue Rally

Asia-Pacific stocks were mostly down on Thursday morning. The Shanghai Composite is down 0.97% at 3,272.72. Overall, the Singapore MSCI is up 0.03% at 291.80. Over in Hong Kong, the Hang Seng Index is down 1.25% at 20,636. In Japan, the Nikkei 225 is up 0.36% at 27,780.00, while the Topix index is up 0.21% at 1952.00. South Korea’s Kospi is up 0.93% at 2,409.16. Australia S&P/ASX 200 up 0.52% at 6794.30.

Top News of the Day:

U.S. stock futures were trading lower during Wednesday’s evening deals, after major benchmark indices extended their rally for the second consecutive session as market participants digest a deluge of corporate earnings results.

At 7:05pm ET (11:05pm GMT) Dow Jones Futures and S&P 500 Futures were down 0.3%, while Nasdaq 100 Futures fell 0.4%.

Market Summary as per 20/07/2022:

European equities Wednesday closing. The DAX futures contract in Germany traded down 0.20% at 13,281.98, CAC 40 futures up 0.12% at 6192.87 and the UK 100 futures contract in the U.K. up 0.07% at 7,268.50.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 0.15% at 31874.85. The S&P 500 up 0.59% at 3859.89 and the Nasdaq 100 up 1.55% at 12439.68, NYSE closes up 0.08% at 14778.46.

Top Market News Today:

In the Forex market, GBPUSD up 0.12% at 1.1958. The USDJPY up 0.15% at 138.425. The USDCHF up 0.09% at 0.9715. EURUSD up 0.38% at 1.0213, EUR/GBP up 0.37% at 0.8527. The USD/CNY up 0.15% at 6.7616 at the time of writing.

In the Commodity market U.S. Gold futures down 0.51% at $1,687.58. Elsewhere, Silver futures down 0.88% at $18.476 per ounce, Platinum down 0.70% at $853.00 per ounce, and Palladium up 0.30% at $1867.50.

Crude Oil down on Thursday; Brent Crude Oil down 0.38% at $106.08 per barrel while U.S. West Texas Intermediate (CLc1) down 0.87% at $98.42.

In the Cryptocurrency Markets, Bitcoin at 22815.00 down 3.55%, Ethereum down 2.36% at 1486.21, Litecoin at 56.26 down 1.61%, at the time of writing.

Top Market Segment to Watch Out Today:

TESLA: Tesla Inc on Wednesday reported a smaller-than-expected drop in quarterly profit as a string of price increases on its electric vehicles (EVs) helped offset production challenges caused by COVID-19 lockdowns in China.

Chief Financial Officer Zachary Kirkhorn said Tesla (NASDAQ:TSLA) was still pushing to reach 50% growth in deliveries this year, adding that while the target had become more difficult, “it remains possible with strong execution.”

Economic News:

US: U.S. existing home sales fell for a fifth straight month in June to the lowest level in two years, as fast-rising interest rates and record-high selling prices make buying a home too expensive for a growing share of American households.

Mortgage interest rates have soared as a result of the Federal Reserve’s stiff rate hikes to try to tame high inflation. That has driven a new buyer’s monthly payment up by more than 50% in the first six months of 2022 by some estimates and has had a clear effect on home sales that had surged during the COVID-19 pandemic to the highest levels since the mid-2000s.

In June, sales of previously owned homes fell 5.4% to a seasonally adjusted annual rate of 5.12 million units, the lowest level since June 2020 when sales were rebounding from the COVID-19 lockdown slump, the National Association of Realtors said on Wednesday. Sales have now fallen each month since January.

Eurozone: The European Central Bank will raise interest rates for the first time in 11 years on Thursday with a bigger-than-flagged move seen as increasingly likely as policymakers fear losing control of runaway consumer price growth.

With inflation already approaching double-digit territory, it is now at risk of getting entrenched above the ECB’s 2% target, requiring rate hikes even if that slows – or crashes – an economy suffering from the impact of Russia’s war in Ukraine.

But policymakers appear far from united on just how fast the ECB should move with some arguing that it is already a long way behind the curve, especially compared to global peers like the U.S. Federal Reserve, while others point to a looming recession that the ECB risks exacerbating.

The bank until recently was signalling a 25 basis point increase to be followed by a bigger move in September, but sources close to the discussion said a 50 basis point increase would also be on the table on Thursday as the inflation outlook is deteriorating quickly.

Top Economic Releases Today:

U.S. Initial Jobless Claims today at 8:30 this time estimated 240K, previously which was 244K.
CANADA New Housing Price Index (MoM) (Jun) today at 8:30 this time estimated 0.3%, previously which was 0.5%.
JAPAN National Core CPI (YoY) (Jun) today at 19:30 this time estimated 2.2%, previously which was 2.1%.
EURO ZONE Deposit Facility Rate (Jul) today at 8:15 this time estimated -0.25%, previously which was -0.50%.
AUSTRALIA HIA New Home Sales (MoM) today previously which was -1.2%.