Technical Analysis Report, Economic News & Price Chart – 19 May 2022

Technical Analysis Report, Economic News & Price Chart – 19 May 2022

Technical Analysis

The Dow Jones Has Dropped to Its Lowest Level Since 2020

Asia-Pacific stocks were down on Thursday morning. The Shanghai Composite is up 0.22% at 3,092.37. Overall, the Singapore MSCI is down 1.81% at 293.40. Over in Hong Kong, the Hang Seng Index is down 2.17% at 20,048. In Japan, the Nikkei 225 is down 1.82% at 26,370.00, while the Topix index is down 1.25% at 1858.00. South Korea’s Kospi is down 1.28% at 2592.34. Australia S&P/ASX 200 down 1.65% at 7064.50.

Top News of the Day:

The Dow slumped Wednesday, as a selloff in tech and a plunge in Target’s following weaker-than-expected quarterly results triggered a selloff in retailers that pushed stocks to their biggest one-day loss since 2020.

The Dow Jones Industrial Average slipped 3.6%, or 1,162 points, its biggest one-day loss since 2020. The S&P 500 fell 3.9%, and Nasdaq fell 4.7%, down more than 26% on the year.

Market Summary as per 18/05/2022:

European equities Wednesday closing. The DAX futures contract in Germany traded down 1.26% at 14,007.76, CAC 40 futures down 1.23% at 6275.11 and the UK 100 futures contract in the U.K. down 0.81% at 7,377.26.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 3.57% at 31490.08. The S&P 500 down 4.04% at 3923.67 and the Nasdaq 100 down 5.06% at 11928.31, NYSE closes down 3.20% at 15044.52.

Top Market News Today:

In the Forex market, GBPUSD up 0.07% at 1.2346. The USDJPY up 0.20% at 129.513. The USDCHF down 0.27% at 0.9846. EURUSD up 0.06% at 1.0467, EUR/GBP up 0.07% at 0.8480. The USD/CNY up 0.13% at 6.7634 at the time of writing.

In the Commodity market U.S. Gold futures down 0.10% at $1,813.93. Elsewhere, Silver futures flat at $21.402 per ounce, Platinum down 1.39% at $924.50 per ounce, and Palladium down 0.15% at $2012.00.

Crude Oil up on Thursday; Brent crude oil up 1.15% at $110.48 per barrel while U.S. West Texas Intermediate (CLc1) up 1.14% at $107.68.

In the Cryptocurrency Markets, Bitcoin at 29290.02 up 2.12%, Ethereum up 2.85% at 1964.51, Litecoin at 68.63 up 4.29%, at the time of writing.

Top Market Segment to Watch Out Today:

TESLA: An S&P Dow Jones Indices executive told Reuters on Wednesday it has removed electric carmaker Tesla (NASDAQ:TSLA) Inc from the widely followed S&P 500 ESG Index because of issues including claims of racial discrimination and crashes linked to its autopilot vehicles, and Tesla CEO Elon Musk responded with harsh tweets including that “ESG is a scam”.

Economic News:

US: Permits for future U.S. homebuilding tumbled to a five-month low in April, suggesting the housing market was slowing as rising mortgage rates contribute to reduced affordability for entry-level and first-time buyers.

But the report from the Commerce Department on Wednesday also showed a record backlog of houses still to be constructed, indicating the moderation in homebuilding would be marginal.

Homebuilding was already being constrained by soaring prices as well as shortages of materials. The housing market is the sector of the economy most sensitive to interest rates, with building permits a leading indicator for the sector.

Building permits dropped 3.2% to a seasonally adjusted annual rate of 1.819 million units in April, the lowest level since last November. They rose 3.1% on a year-on-year basis. Economists polled by Reuters had forecast building permits would decrease to a rate of 1.812 million units.

Eurozone: Russia’s weekly inflation rate eased further in May, data from statistics service Rosstat showed on Wednesday, after spiking sharply soon after Russia began what it calls a “special military operation” in Ukraine on Feb. 24.

Inflation is slowing even after the central bank lowered its key interest rate to 14% from 17% in April and said it saw room for more cuts, as it tries to manage a shrinking economy and high inflation.

Inflation was 0.05% in the week to May 13, down from 0.12% a week earlier and well below the 2.22% hit in early March.

For the first time in many weeks, annual inflation also slowed, to 17.69% from 17.77% a week earlier, the economy ministry said.

Prices on nearly everything, from vegetables and sugar to clothes and smartphones, have risen sharply in recent weeks as Russia encountered logistics disruptions and increased volatility in the rouble.

Top Economic Releases Today:

U.S. Initial Jobless Claims today at 8:30 this time estimated 200K, previously which was 203K. 

U.S. Existing Home Sales (Apr) today at 10:00 this time estimated 5.65M, previously which was 5.77M.

JAPAN National Core CPI (YoY) (Apr) today at 19:30 this time estimated 2.1%, previously which was 0.8%.

CANADA New Housing Price Index (MoM) (Apr) today at 8:30 this time estimated 0.6%, previously which was 1.2%.

NEW ZEALAND Trade Balance (YoY) (Apr) today at 18:45 previously which was -9,110M.

TECHNICAL SUMMARY

GBPUSD

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 1.2373, TAKE PROFIT AT 1.2327 AND STOP LOSS AT 1.2468

EURUSD

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 1.0484, TAKE PROFIT AT 1.0388 AND STOP LOSS AT 1.0562

USDJPY

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 128.113, TAKE PROFIT AT 127.511 AND STOP LOSS AT 128.678

USDCHF

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 0.9810, TAKE PROFIT AT 0.9710 AND STOP LOSS AT 0.9872

S&P 200

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 7018.00 TAKE PROFIT AT 6972.00 AND STOP LOSS AT 7068.00

WTI CRUDE OIL

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 106.70 TAKE PROFIT AT 104.45 AND STOP LOSS AT 108.30

GOLD

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 1814.74, TAKE PROFIT AT 1806.47 AND STOP AT 1824.18

ETHEREUM

Technical Analysis of Financial Markets
Technical Analysis of Financial Markets

TRADE SUGGESTION- SELL AT 1935.49 TAKE PROFIT AT 1896.78 AND STOP AT 1962.77

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