Technical Analysis Report, Economic News & Price Chart – 18 May 2022

Technical Analysis Report, Economic News & Price Chart – 18 May 2022

Technical Analysis of Financial Markets

WALL STREET HAS BEEN LIFTED BY STRONG RETAIL SALES IN APRIL

Asia Pacific stocks were mostly up on Wednesday morning. The Shanghai Composite is up 0.05% at 3,095.77. Overall, the Singapore MSCI is up 2.53% at 300.15. Over in Hong Kong, the Hang Seng Index is down 0.20% at 20,536. In Japan, the Nikkei 225 is up 0.86% at 26,860.00, while the Topix index is up 0.99% at 1881.50. South Korea’s Kospi is up 0.21% at 2625.98. Australia S&P/ASX 200 up 0.99% at 7182.70.

Top News of the Day:

Wall Street finished sharply higher on Tuesday, lifted by Apple, Tesla (NASDAQ:TSLA) and other mega cap growth stocks after strong retail sales in April eased worries about slowing economic growth.

Ten of the 11 major S&P sector indexes advanced, with financials, materials, consumer discretionary and technology all gaining more than 2%. Investors were cheered by data showing U.S. retail sales increased 0.9% in April as consumers bought motor vehicles amid an improvement in supply and frequented restaurants.

Market Summary as per 17/05/2022:

European equities Tuesday closing. The DAX futures contract in Germany traded up 1.59% at 14,185.94, CAC 40 futures up 1.30% at 6430.20 and the UK 100 futures contract in the U.K. up 0.72% at 7,518.36.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 1.34% at 32654.60. The S&P 500 up 2.02% at 4088.84 and the Nasdaq 100 up 2.62% at 12564.10, NYSE closes up 1.85% at 15541.91.

Top Market News Today:

In the Forex market, GBPUSD down 0.41% at 1.2440. The USDJPY down 0.16% at 129.145. The USDCHF up 0.28% at 0.9955. EURUSD down 0.26% at 1.0518, EUR/GBP up 0.20% at 0.8455. The USD/CNY up 0.12% at 6.7460 at the time of writing.

In the Commodity market U.S. Gold futures down 0.18% at $1,811.22. Elsewhere, Silver futures down 0.33% at $21.537 per ounce, Platinum down 0.21% at $952.00 per ounce, and Palladium down 0.71% at $2039.00.

Crude Oil down on Wednesday; Brent crude oil down 0.61% at $112.02 per barrel while U.S. West Texas Intermediate (CLc1) down 0.45% at $109.98.

In the Cryptocurrency Markets, Bitcoin at 29816.78 down 2.00%, Ethereum down 2.68% at 2033.44, Litecoin at 71.59 down 1.89%, at the time of writing.

Top Market Segment to Watch Out Today:

ERICSSON: Ericsson (BS:ERICAs) on Wednesday laid out plans to restructure its operating units to focus on mobile infrastructure and business customers, and announced that two senior executives will leave the company.

A new business unit was created by merging digital services and managed services to increase its cloud expertise and build products for automation and artificial intelligence. The unit will be led by Per Narvinger, who joined Ericsson in 1997.

Economic News:

US: Chicago Federal Reserve Bank President Charles Evans on Tuesday said he supports moving to a shallower rate-hike path by July or September to allow the Fed time to assess inflation and the job market as it pushes borrowing costs up to neutral, and likely beyond.

The Fed has raised interest rates by three-quarters of a percentage point so far this year, including a bigger-than-usual half-point hike earlier this month that lifted short-term borrowing costs to a range of 0.75%-1%.

Fed Chair Jerome Powell has signalled at least two half-point rate hikes are ahead. On Tuesday he told the Wall Street Journal that the central bank will keep “pushing” on rate hikes until it sees inflation move down in a “clear and convincing way,” not hesitating to move more aggressively if that does not happen.

Eurozone: European Central Bank President Christine Lagarde has given national central bank chiefs a bigger say in policy meetings, asking her own board to speak less and set aside more time for debate, sources familiar with the process said.

Lagarde has told chief economist Philip Lane and fellow board member Isabel Schnabel to limit their presentations and leave more space for the central bank chiefs of the euro’s 19 countries to air their views, six sources told Reuters.

Marshalling consensus among different countries has always been a tricky task for the Frankfurt-based central bank and complaints about the structure of the meetings, where a few voices typically dominate, predate Lagarde’s tenure.

Such criticism has grown since last summer as Lane and his staff repeatedly underestimated the size and duration of inflationary pressures. The surge in prices, which some ECB policymakers warned were persistent, eventually prompted the central bank to change tack and open the door to higher interest rates this year.

Top Economic Releases Today:

  1. U.S. CPI (YoY) (Apr) today at 2:00 this time estimated 9.1%, previously which was 7.0%. 
  2. U.S. Building Permits (Apr) today at 8:30 this time estimated 1.812M, previously which was 1.870M.
  3. CANADA Core CPI (MoM) (Apr) today at 8:30 this time estimated 0.4%, previously which was 1.0%.
  4. JAPAN Exports (YoY) (Apr) today at 19:50 this time estimated 13.8%, previously which was 14.7%.
  5. AUSTRALIA Employment Change (Apr) today at 21:30 this time estimated 30.00K, previously which was 17.90K.

TECHNICAL SUMMARY

GBPUSD

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- BUY AT 1.2423, TAKE PROFIT AT 1.2467 AND STOP LOSS AT 1.2373

EURUSD

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- BUY AT 1.0515, TAKE PROFIT AT 1.0574 AND STOP LOSS AT 1.0489

GBPJPY

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 160.358, TAKE PROFIT AT 159.801 AND STOP LOSS AT 161.124

CHFJPY

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 129.566, TAKE PROFIT AT 128.998 AND STOP LOSS AT 129.978

HANG SENG

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- BUY AT 20500.00 TAKE PROFIT AT 20709.00 AND STOP LOSS AT 20273.00

WTI CRUDE OIL

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- BUY AT 111.46 TAKE PROFIT AT 114.84 AND STOP LOSS AT 108.40

GOLD

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 1815.99, TAKE PROFIT AT 1807.28 AND STOP AT 1828.65

BITCOIN

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 29784.57 TAKE PROFIT AT 29237.43 AND STOP AT 30662.47

About Author