Technical Analysis Report, Economic News & Price Chart – 20 May 2022

Technical Analysis Report, Economic News & Price Chart – 20 May 2022

Technical Analysis

As Cisco & Apple Fall, Wall Street Closes Lower

        Asia-Pacific stocks were up on Friday morning. The Shanghai Composite is up 1.33% at 3,137.98. Overall, the Singapore MSCI is up 2.89% at 298.75. Over in Hong Kong, the Hang Seng Index is up 2.65% at 20,551. In Japan, the Nikkei 225 is up 1.40% at 26,740.00, while the Topix index is up 1.08% at 1878.00. South Korea’s Kospi is up 1.80% at 2639.04. Australia S&P/ASX 200 up 1.07% at 7140.40.

Top News of the Day:

Wall Street ended lower after a volatile session on Thursday, with Cisco Systems (NASDAQ:CSCO) slumping after giving a dismal outlook, while investors fretted about inflation and rising interest rates.

Shares of Cisco slumped 13.7% after the networking gear maker lowered its 2022 revenue growth outlook, taking a hit from its Russia exit and component shortages related to COVID-19 lockdowns in China.

Market Summary as per 19/05/2022:

European equities Thursday closing. The DAX futures contract in Germany traded down 0.90% at 13,882.30, CAC 40 futures down 1.26% at 6272.72 and the UK 100 futures contract in the U.K. down 1.82% at 7,302.75.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.75% at 31253.14. The S&P 500 down 0.58% at 3900.78 and the Nasdaq 100 down 0.44% at 11875.63, NYSE closes down 0.06% at 15035.87.

Top Market News Today:

In the Forex market, GBPUSD up 0.07% at 1.2474. The USDJPY up 0.04% at 127.851. The USDCHF down 0.19% at 0.9707. EURUSD up 0.04% at 1.0585, EUR/GBP down 0.01% at 0.8483. The USD/CNY down 0.31% at 6.6915 at the time of writing.

In the Commodity market U.S. Gold futures up 0.37% at $1,847.09. Elsewhere, Silver futures up 0.48% at $22.024 per ounce, Platinum up 0.26% at $965.50 per ounce, and Palladium up 1.20% at $2030.00.

Crude Oil down on Friday; Brent crude oil down 0.02% at $111.33 per barrel while U.S. West Texas Intermediate (CLc1) down 2.32% at $109.00.

In the Cryptocurrency Markets, Bitcoin at 30000.00 up 0.18%, Ethereum down 0.72% at 2003.37, Litecoin at 69.03 down 4.15%, at the time of writing.

Top Market Segment to Watch Out Today:

JPMorgan Chase & Co: JPMorgan Chase & Co (NYSE:JPM) plans to make further inroads in Germany by targeting more of the medium-sized firms that form the backbone of Europe’s largest economy, executives at the U.S. bank said.

The move is a challenge to established lenders such as Commerzbank (ETR:CBKG), UniCredit’s HypoVereinsbank, and Deutsche Bank (ETR:DBKGn), which have dominated a crowded market for so-called Mittelstand companies for decades.

Economic News:

US: The number of Americans filing new claims for unemployment benefits unexpectedly rose last week, reaching a four month-high and potentially hinting at some cooling in demand for workers amid tightening financial conditions.

Still, the labor market remains tight as the report from the Labor Department on Thursday also showed the ranks of the unemployed were the smallest in almost 52-1/2 years in early May. Signs of ebbing demand for labor were also evident in a survey from the Philadelphia Federal Reserve, showing a decline in the share of firms reporting higher employment levels and the average work at factories in the mid-Atlantic region this month.

The Federal Reserve’s aggressive monetary policy stance as it fights inflation has sparked a stock market sell-off and boosted U.S. Treasury yields and the dollar. Several retailers, including Walmart (NYSE:WMT) Inc, this week cut their full-year earnings forecasts, warning that inflation was squeezing profits.

Eurozone: British manufacturers reported the joint-strongest growth in orders this month since records began, while output rose at the fastest rate since July, figures from the Confederation of British Industry showed on Thursday.

The CBI data fits a broader pattern of fairly solid current demand conditions for businesses, but mounting worries about the outlook for later this year as surging prices exact a growing toll on consumer spending and some businesses’ profit margins.

The CBI’s headline order book index – which measures the extent to which order levels are above or below normal – rose to +26 in May from +14 in April, matching previous records from March and November.

Export orders jumped to +19 in May from -9, their highest since January 2018, and the CBI’s gauge of output over the past three months rose to a 10-month high of +30 from +19.

Top Economic Releases Today:

  1. CANADA Wholesale Sales (MoM) (Mar) today at 8:30 this time estimated 0.9%, previously which was -0.4%.
  2. -1.2%.
  3. SWITZERLAND Industrial Production (QoQ) today at 2:30 previously which was 7.3%.
  • EURO ZONE Consumer Confidence (May) today at 10:00 this time estimated -21.5, previously which was -22.0.
  • GERMANY PPI (MoM) (Apr) today at 2:00 this time estimated 1.4%, previously which was 4.9%.

TECHNICAL SUMMARY

GBPUSD

TRADE SUGGESTION- BUY AT 1.2480, TAKE PROFIT AT 1.2566 AND STOP LOSS AT 1.2375

EURUSD

TRADE SUGGESTION- BUY AT 1.0576, TAKE PROFIT AT 1.0597 AND STOP LOSS AT 1.0554

EURGBP

TRADE SUGGESTION- SELL AT 0.8473, TAKE PROFIT AT 0.8464 AND STOP LOSS AT 0.8492

EURJPY

TRADE SUGGESTION- SELL AT 135.219, TAKE PROFIT AT 134.308 AND STOP LOSS AT 135.821

DAX 40

TRADE SUGGESTION- BUY AT 14050.00 TAKE PROFIT AT 14198.50 AND STOP LOSS AT 13921.00

WTI CRUDE OIL

TRADE SUGGESTION- SELL AT 109.23 TAKE PROFIT AT 107.98 AND STOP LOSS AT 110.84

GOLD

TRADE SUGGESTION- SELL AT 1844.32, TAKE PROFIT AT 1829.05 AND STOP AT 1854.33

LITECOIN 

TRADE SUGGESTION- SELL AT 68.45 TAKE PROFIT AT 64.25 AND STOP AT 73.62

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