Technical Analysis Report, Economic News & Price Chart – 25 May 2022

Technical Analysis Report, Economic News & Price Chart – 25 May 2022

Technical Analysis

The Stock Market’s Two-Day Relief Bounce has Finished

Asia Pacific stocks were mostly down on Wednesday morning. The Shanghai Composite is down 2.41% at 3,070.92. Overall, the Singapore MSCI is down 0.29% at 293.05. Over in Hong Kong, the Hang Seng Index is down 0.71% at 19,972. In Japan, the Nikkei 225 is down 0.56% at 26,590.00, while the Topix index is down 0.59% at 1867.50. South Korea’s Kospi is up 0.49% at 2618.75. Australia S&P/ASX 200 up 0.29% at 7149.80.

Top News of the Day:

Shares slid worldwide on Tuesday as supply chain woes and surging costs hurt corporate earnings and manufacturing output slowed, while Treasury yields dipped as the weakness in equities revived a safe-haven bid for U.S. government debt.

The stock market’s two-day relief rally ended as investors worried about slowing economies. Corporate profit margins have been squeezed, with soaring inflation forcing consumers to cut discretionary spending.

Market Summary as per 24/05/2022:

European equities Tuesday closing. The DAX futures contract in Germany traded down 1.80% at 13,919.75, CAC 40 futures down 1.66% at 6253.15 and the UK 100 futures contract in the U.K. up 0.22% at 7,534.00.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 0.15% at 31928.63. The S&P 500 down 0.81% at 3941.49 and the Nasdaq 100 down 2.20% at 11769.84, NYSE closes down 0.34% at 15290.38.

Top Market News Today:

In the Forex market, GBPUSD up 0.04% at 1.2534. The USDJPY up 0.10% at 126.903. The USDCHF up 0.19% at 0.9611. EURUSD down 0.08% at 1.0722, EUR/GBP down 0.10% at 0.8554. The USD/CNY up 0.05% at 6.6537 at the time of writing.

In the Commodity market U.S. Gold futures down 0.06% at $1,856.75. Elsewhere, Silver futures down 0.02% at $22.074 per ounce, Platinum up 0.11% at $952.50 per ounce, and Palladium up 0.05% at $2007.00.

Crude Oil up on Wednesday; Brent crude oil up 0.42% at $114.14 per barrel while U.S. West Texas Intermediate (CLc1) up 0.20% at $109.69.

In the Cryptocurrency Markets, Bitcoin at 29560.00 up 0.87%, Ethereum down 0.18% at 1974.50, Litecoin at 69.94 down 0.53%, at the time of writing.

Top Market Segment to Watch Out Today:

LYFT Inc.(NASDAQ:LYFT): Ride-hailing firm Lyft Inc (NASDAQ:LYFT) said on Tuesday it would slowdown hiring and assess budget cuts in some departments, joining rival Uber Technologies (NYSE:UBER) Inc in attempting to rein in costs.

Lyft said no employee layoffs are planned and added it would grant special stock options to eligible employees. Shares of Lyft have tumbled nearly 61% this year amid broader declines in tech stocks and closed down 17.2% on Tuesday.

Economic News:

US: Hedge funds that bet on bonds, currencies, stocks and commodities are among the industry’s biggest winners this year easily outpacing growth and tech funds’ returns and preparing to see significant inflows of capital as the stock market hovers near bear market territory.

So-called global macro funds returned 10.3% in the first four months of the year while the average hedge fund inched up 1.9%, according to data from Hedge Fund Research. The Standard & Poor’s 500 index tumbled 13% in that period.

Over the last three years, global macro funds on average delivered positive returns but they also trailed behind the hedge fund industry’s stronger returns.

Now with inflation surging and volatility ticking higher as central banks reverse years of monetary stimulus, the environment looks to be especially good for global macro funds.

Global macro funds invest only about 17% of the industry’s $4 trillion in assets, less than the roughly 30% invested by equity-focused hedge funds and the 28% invested by funds that bet on corporate events, Hedge Fund Research data show.

Eurozone: European Union leaders are unlikely to strike a deal on an oil embargo against Russia at their summit on Monday and Tuesday, head of the bloc’s executive Ursula von der Leyen said.

Von der Leyen’s Commission has proposed phasing out Russian oil imports by the end of the year in most EU member states, while Hungary and others could be given more time.

It would be the EU’s harshest sanction yet in response to Moscow’s Feb. 24 invasion of Ukraine.

Hungary, however, has so far refused to lift its veto.

It says hundreds of millions of euros are needed to upgrade its refining and pipeline infrastructure so that it can cut out Russian oil, while a total modernisation of its energy system would cost billions of euros.

Top Economic Releases Today:

  1. U.S. Crude Oil Inventories today at 10:30 this time estimated -0.737M, previously which was -3.394M. 
  2. AUSTRALIA Private New Capital Expenditure (QoQ) (Q1) today at 21:30 this time estimated 1.5%, previously which was 1.1%.
  3. GERMANY GDP (QoQ) (Q1) today at 2:00 this time estimated 0.20%, previously which was -0.30%.
  4. JAPAN Corporate Services Price Index (CSPI) (YoY) today at 19:50 this time estimated 1.5%, previously which was 1.3%.
  5. U.S. Core Durable Goods Orders (MoM) (Apr) today at 8:30 this time estimated 0.6%, previously which was 1.2%.

TECHNICAL SUMMARY

GBPUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 1.2518, TAKE PROFIT AT 1.2598 AND STOP LOSS AT 1.2469

EURUSD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 1.0717, TAKE PROFIT AT 1.0758 AND STOP LOSS AT 1.0692

EURGBP

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 0.8554, TAKE PROFIT AT 0.8567 AND STOP LOSS AT 0.8543

EURJPY

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 135.876, TAKE PROFIT AT 135.486 AND STOP LOSS AT 136.468

DOW JONES

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 31976.00 TAKE PROFIT AT 31865.00 AND STOP LOSS AT 32196.00

WTI CRUDE OIL

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 110.87 TAKE PROFIT AT 111.53 AND STOP LOSS AT 110.35

GOLD

Technical Analysis
Technical Analysis

TRADE SUGGESTION- BUY AT 1861.74, TAKE PROFIT AT 1873.31 AND STOP AT 1849.66

LITECOIN 

Technical Analysis
Technical Analysis

TRADE SUGGESTION- SELL AT 69.21 TAKE PROFIT AT 65.35 AND STOP AT 71.71

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