Indices updates by Solidecn.com

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Dow Jones, the US stock market is preparing for a new decline

The US stock market is declining again, the reason for which was the technology sector, whose shares are seriously getting cheaper. Thus, Advanced Micro Devices Inc. stocks lost more than 5.6% due to the negative forecast of Barclays experts and the change of the recommendation to negative. In turn, the quotes of HP Inc. and Dell Technologies Inc. are losing 7.6% and 7.4%, respectively, after Morgan Stanley analysts lowered their forecast for the purchase of shares of these companies.

The US bond market is showing local growth. Thus, the yield rate on 10-year US Treasuries increased by 2.62% and by 1.90% on conservative 20-year securities. Short-term bonds are also rising. The rate on annual treasury securities increased by 1.77%, and on 6-month — by 3.50%. At the moment, there is not a single company showing growth in the index, and among the least losing in price are Caterpillar Inc. (-0.12%), Amgen Inc. (-0.31%), Coca-Cola Co. (-0.34%), Merck&Co. (-0.42%). The leaders of the decline are Walgreens Boots Inc. (-5.67%), Intel Corp. (-3.71%), JPMorgan Chase & Co. (-3.00%).

The index quotes continue to trade inside the descending channel, having reached the resistance line the day before. Technical indicators are ready to reverse and issue a sell signal: the fast EMA of the alligator indicator began to actively approach the signal line, and the histogram of the AO oscillator formed the first descending bar.

Support levels: 34327, 32540 | Resistance levels: 35260, 36410

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Walmart Inc, general overview
The stocks of the American company that manages the world's largest wholesale and retail chain, Walmart Inc., are trading at 149.

Earlier, it was announced that it intended to hire an additional 50K employees in the USA in the current quarter, which could put serious pressure on profitability, since the company pays hourly wages, which have increased by more than 5.5% since the beginning of 2022, and the growth trend continues. According to preliminary estimates, labor costs may increase by 15% in 2022, which will negatively affect the indicators.  

As for the dividends, the next payment is scheduled for April 4, when investors will receive 0.56 dollars per share. The closure of the registry has already taken place on March 17. It was also reported that the annual shareholders' meeting will be held on June 1, 2022, and it may consider further raising the amount of dividends to 2.30 dollars per share for the year.

The asset continues to move within the global corridor, which shows signs of local decline. After reaching the resistance line, the price is preparing to start forming a reversal. Technical indicators still continue to hold the buy signal: the histogram of the AO oscillator is trading in the buy zone, and the fast EMA on the alligator indicator is above the signal line.

Resistance levels: 151, 160 | Support levels: 147, 135.

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Nikkei 225, Japanese stock market remains under pressure

The pressure on the Japanese stock market continues to be exerted by the growing geopolitical tension, which has already caused an increase in energy prices. One of the leading indicators of business confidence in Japanese industry, the Tankan index, fell from 17 to 14 points in Q1 2022. This means that large manufacturers' confidence in the national economy has significantly decreased, which is also confirmed by the decline in the sentiment index of large non-manufacturing companies, which amounted to 9 points, down from 10 points a quarter earlier.

The main factor behind the downtrend of the stock market in Japan is the negative trend in the domestic bond market. The yield on 10-year bonds decreased by 1.86% compared to the values at Friday's close, and on conservative 20-year bonds it decreased by 2.12%. The most serious drop, however, is observed in short-term securities: 2-year government bonds lose 22.06% of their value at the moment.

On the global chart, the price continues to trade within the descending channel, being near the resistance line. Technical indicators maintain a slightly weakening buy signal: the histogram of the AO oscillator is deep in the buy zone, and the fast EMAs on the Alligator indicator are above the signal line.

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PayPal Holdings, the price may grow.

On the daily chart, the upward wave of the higher level А formed, and a downward correction develops as the wave B. Now, the wave (А) of B has formed, and an upward correction of the lower level has started to develop as the wave (B) of B. 

If the assumption is correct, the price will grow to the levels of 199.6 - 224. In this scenario, critical stop loss level is 91.

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Silver prices are falling during the Asian session, correcting after yesterday's attempt to grow. The instrument is now testing the level 24.2 for a breakdown and waiting for new signals.

The situation on the market is changing slightly since there are no prerequisites for the completion of a special military operation initiated by the Russian authorities on the territory of Ukraine. Moreover, the economic outlook is only worsening as more sanctions are imposed on the Russian economy. In particular, yesterday, the EU announced its intention to expand the list of goods banned from imports from Russia, but analysts report that this package of sanctions has not been agreed upon so far. The project involves a ban on importing coal and some agricultural products, in particular, potash fertilizers. Certain foodstuffs may also be subject to restrictions. According to experts, sanctions could cost the economy about 9B euros a year.

The pressure on the instrument's position is exerted by the growth in the yield of US Treasury bonds. The minutes of the US Federal Reserve's Open Market Committee (FOMC) published yesterday reflected the regulator's readiness to accelerate the tightening of monetary policy, including through the launch of a quantitative tightening program. Similar sentiments can be traced in the speeches official representatives of the regulator, for example, Lael Brainard, who is known for her rather reserved position.

On the daily chart, Bollinger Bands are steadily declining. The price range expands, letting the "bears" renew local lows. The MACD indicator is falling, keeping a relatively strong sell signal (the histogram is below the signal line). Stochastic shows similar dynamics but is approaching the level of 20, which indicates that silver may become oversold in the ultra-short term.

Resistance levels: 24.42, 24.67, 25, 25.35 | Support levels: 24, 23.6, 23.32, 23

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Serious pressure on the US stock market was exerted by the minutes of the meeting of the Federal Open Market Committee of the US Federal Reserve (FOMC) published yesterday. According to the document, most of the participants in the meeting would have preferred to raise the rate by 0.50% already in March against the backdrop of high inflation, but as a result, the indicator was corrected by a minimum amount of 25 basis points. Also, the regulator confirmed plans to reduce the balance sheet by 95B dollars per month. According to forecasts, the agency is ready to start a quantitative increase and increase the rate by 50 basis points at once in May.

This week, traders were on the lookout for reports that investment firm Berkshire Hathaway Inc. has purchased an 11.4% stake in the American manufacturer of personal computers and printing equipment HP Inc. The deal amounted to 4.2B dollars.

The index quotes have left the limits of the narrow downward channel and are forming a global Head and shoulders reversal formation. Technical indicators give a poor signal to buy: indicator Alligator's EMA fluctuations range is still quite wide, and the AO oscillator histogram forms downward bars in the buy zone.

Resistance levels: 15150, 16387 | Support levels: 14225, 13070

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The leading index of the Australian economy, ASX 200, is strengthening, being near 7477.0. The Australian stock market is trading ambiguously due to a poor Friday report on economic stability and growth in the bond market.

Thus, the Reserve Bank of Australia announced the growing uncertainty regarding the development of the national economy, caused primarily by the continuing rise in inflation. Officials said they were closely monitoring the dynamics of household mortgage debt and lending and warned borrowers that they should be prepared for higher interest rates. According to department representatives, the country's financial system remains stable, and financial institutions are well-capitalized. However, inflation will continue to rise in the future, putting serious pressure on both borrowers and consumers.

The stock market is not allowed to fall by the bond market, which continues to grow actively. Today, the yield of popular 10-year bonds of Australia added 1.96%, while the rate of return on conservative 20-year bonds is 1.78%. Short-term assets show a more restrained trend: 1-year securities rose by 1.68%, and 2-year securities added 0.89%.

The price moves within the global Expanding formation pattern, approaching the resistance line. Technical indicators keep a stable buy signal: fast EMAs of the Alligator indicator are above the signal line, and the AO oscillator histogram is high in the buying zone.

Support levels: 7380, 6980 | Resistance levels: 7550, 7750

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The tech-heavy Nasdaq 100 index declined more than 1% on Monday as US yields continue to rise, undermining high growth and tech sectors.
As measured by the Fibonacci retracement tool, the Nasdaq has erased nearly 50% of the rally from March lows to April highs. However, the critical resistance remains at the 200-day moving average, currently near 15,200 USD. Regarding the Ukraine war, White House national security adviser Jake Sullivan said on Sunday that Ukrainian forces could push back Russian troops successfully so that they were forced to retreat and regroup.

Bears pushed the Nasdaq below the 50-day moving average (the purple line) at 14,330 USD, changing the short-term outlook to bearish. As long as the index trades below the 50-day average, the next target for decline seems to be at 13,900 USD. If the index jumps above 14,330 USD, we might see a bullish reversal, targeting 14,630 USD in the initial reaction. 

However, sentiment might stay bearish in the near future as the Fed seems ready to deliver more rate hikes than previously expected, likely crushing the high-debt and high-growth sectors, tech included. 

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The Dow Jones is correcting down and trading at $34,180.
The corporate reporting season starts this week with the publication of data by companies in the banking and insurance sectors. Despite the fact that the stock market is trading at its highs, strong financial results should not be expected during this period, and if the figures are higher than predicted, this will probably not affect the long-term plans of issuers.

The bond market is also showing historical growth, so a serious influx of money into stocks is not expected. The yield on popular 10-year US Treasuries updated the record of 2019 and amounted to 2.826%, while conservative 20-year bonds overcame the figure of 3.040% the day before. Short-term bonds are the fastest rising, adding 3.85% and 5.67% for 3-month and 6-month notes, respectively.

The index quotes are traded inside the descending channel, having reached the resistance line and reversed from it. Technical indicators are about to change direction and give a sell signal: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram is actively forming downward bars.

Support levels: 33,860, 32,550 | Resistance levels: 34,820, 35,870

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The positive dynamics are developing against the background of reports about the acquisition by the London company ReViral Ltd. corporation, and this transaction is estimated at 525M dollars. Thus, the pharmaceutical giant will access several new experimental antiviral drugs. Note that this is the second acquisition of Pfizer Inc. in less than six months. Arena Pharmaceuticals Inc. was acquired in December. The deal amounted to 6.7B dollars.

A positive signal for the asset was the appointment of David Denton as CFO, who previously held a similar position at CVS Pharmacy Inc. and has extensive experience in mergers and acquisitions. Experts believe the new appointment indicates Pfizer Inc.'s forthcoming business expansion as the issuer aims to reach 25B dollars in revenue by 2030.

The price is going down, but to develop a serious correction, the breakdown of 53.12 (Murrey [6/8], the middle line of Bollinger Bands) is necessary. In this case, quotes will be able to drop to 50.00 (Murrey [4/8]), 48.44 (Murrey [5/8]). The key "bullish" level of 56.25 (Murrey [8/8]). Its breakout allows a rise to 59.38 (Murrey [+2/8]) and 61.50 (December highs area).

Technical indicators are signaling the continuation of the uptrend: Bollinger bands are directed upwards, the MACD histogram is increasing in the positive zone, but Stochastic is preparing to leave the overbought zone, which does not exclude a correction.

Resistance levels: 56.25, 59.38, 61.5 | Support levels: 53.12, 50, 48.44

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DuPont De Nemours Inc, the price is approaching the lows of the year

The stocks of one of the largest chemical companies in the world, DuPont De Nemours Inc., continue to be in a corrective downward trend, trading at 68.00.

DuPont De Nemours Inc. is gradually approaching its first quarterly report in 2022, which is scheduled for May 5. Despite the gradual increase in profitability indicators in previous periods, analysts do not expect serious results from the company. According to preliminary forecasts, earnings per share will be about 0.66 dollars, which is a decrease of -27.47% compared to the same indicator a year earlier. In general, this year's profit is expected to be 3.39 dollars per share, which is 21.16% lower than in 2021. The forecast for annual revenue is at the level of 16.3B dollars, which is also 2.12% lower than last year's value.

The last quarterly payment to asset holders took place on March 15, when investors were sent 0.33 dollars per share, and the yield was 1.75%. The date and amount of the new dividends have not yet been set, they will be announced immediately after the publication of the Q1 reports. 

The correction formation continues to develop on the global chart of the asset, within which the price is approaching the lows of the year. Technical indicators have reversed and issued a new sell signal: the range of EMA fluctuations on the alligator indicator is expanding in the direction of decline, and the histogram of the AO oscillator forms new bars with a downward trend, being in the sales zone.     

Resistance levels: 71, 78 | Support levels: 67.6, 6

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Visa Inc, the price may fall.

On the daily chart, the third wave of the higher level (3) developed, and a downward correction forms as the fourth wave (4). Now, the wave A of (4) is developing, within which the third wave of the lower level iii of А has formed, and the wave iv of A has developed. 

If the assumption is correct, the price will fall to the levels of 178.37 - 135.65. In this scenario, critical stop loss level is 230.11.

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The FTSE 100 index shows a local corrective trend, trading at 7574.0.
Corporate news is beginning to come to the fore in stock markets around the world, as the period for publishing the financial results of index component companies kicks off next week. The budget carrier EasyJet Plc. reported that the revenue forecast suggests a loss of around 500 million pounds due to low overall bookings. In turn, the shares of the online retailer ASOS Plc. strengthened marginally after maintaining the company's strong growth forecast for 2022, despite an expected drop in first-half earnings due to supply issues.

In addition, the continued growth in the UK bond market should be noted, where 10-year treasuries renewed another high, reaching 1.8080%, and the yield on 20-year conservative bonds increased to 2.021%, which significantly exceeds 1.741% at the beginning of the month.

The growth leaders in the index are British Petroleum Plc. (+2.40%), Fresnillo Plc. (+2.30%), JD Sports Fashion Plc. (+2.18%). Among the leaders of the decline are Rolls-Royce Holdings Plc. (-5.48%), Land Securities Group Plc. (-4.53%), Ocado Group Plc. (-4.32%).

Index quotes are trading within the global Expanding Formation pattern. Technical indicators are in a stable buy signal state: the range of EMA fluctuations on the Alligator indicator stays wide and the histogram of the AO oscillator is trading high in the purchase zone.

Support levels: 7500, 7232 | Resistance levels: 7673, 7900

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The shares of Tesla Inc., the world's leading manufacturer of electric cars, continue their global correction, trading at 1022.

On the daily chart, the trading instrument is within the global Expanding formation pattern, which began to implement in October 2021. At the moment, the price has completely formed its sixth wave, having reached the resistance line at 1146, and reversed downwards.

On the 4-hour chart, there are signs of a new downward wave, with the target at the support line of the pattern around 760. The readings of technical indicators also confirm the likely continuation of the decline: fast EMAs on the Alligator indicator are actively approaching the signal line, and the AO oscillator histogram is forming bars with a downward trend in the buying zone.

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General Electric,  technical analysis
The global sideways correction in the shares of General Electric Co., an American multi-industry corporation, is strengthening, and the instrument is currently trading just below 91.

On the daily chart of the asset, a wide downwards channel is forming, inside which the price failed to break the resistance line at 96 again and reversed downwards.

On the four-hour chart, quotes are moving towards the support line, being in the middle of the range. Now, the main target is the channel's support line, located around 82. The readings of technical indicators also confirm the high probability of a possible decline: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram has moved into the sell zone and is forming downward bars.

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Against the backdrop of the start of the corporate reporting period, corporate news comes to the fore for stock indices. ArcelorMittal SA announced that it intends to acquire a majority stake in the Austrian steel company Voestalpine AG. The preliminary amount of the deal is estimated at 1 billion dollars. The day before, Hermes International SA published its financial results, according to which the quarterly revenue exceeded 3.10 billion euros, and the growth compared to the previous quarter was 33%, thanks to an increase in sales in all segments.

The rally that began in the French bond market in March of this year is continuing now, with popular 10-year bonds yielding 1.334%, up from 0.350% in early March, and conservative 20-year bonds hitting 1.628%, the last time observed at the beginning of 2017.

The quotes of the asset are traded as part of a global downtrend, rising in the direction of the resistance line. Technical indicators are holding a local buy signal: the range of EMA fluctuations on the Alligator indicator is about to start expanding in the direction of growth, and the histogram of the AO oscillator is trading in the purchase zone while forming local ascending bars.

Support levels: 6420, 5880 | Resistance levels: 6800, 7150

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The corporate reporting period in Japan started with the publication of financial results of real estate companies. So, the investment company Daiwa House REIT Investment Corp., Ltd. showed quite strong results: revenue was recorded at around 30.26B yen, surpassing 29.57B yen in the previous quarter. In turn, Mitsubishi Estate Logistics REIT Investment Corp. reported revenue of 5.03B yen, which was also higher than the 4.95B yen shown in the previous quarter. LaSalle Logiport REIT showed revenue of 10.59B yen, which was better than the projected 10.55B yen.

In the domestic bond market, the situation began to stabilize after the global downtrend changed last week. Thus, the yield on 10-year Japanese treasuries lost 1.26% relative to Friday's close, while conservative 20-year bonds rose by 2.19%, and global 30-year bonds — by 3.11%.

On the global chart of the asset, the price remains within a wide descending channel, moving in the direction of the resistance line. Technical indicators are in a state of uncertainty: the histogram of the AO oscillator is close to the transition level, forming descending bars, and the fast EMAs on the alligator indicator are below the signal line.

Support levels: 26175, 24681 | Resistance levels: 27386, 28506

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The shares of Snap Inc, the US company that owns the Snapchat messenger, are trading at 32.

On the daily chart of the asset, a global downtrend continues to form, at the lows of which the price is clamped inside the Triangle pattern. There is not much time left before the figure's implementation, and if the quotes break the February low of 28, the downward scenario will receive the necessary confirmation.

The four-hour chart shows that a full-fledged correction has not yet begun, as the instrument has not consolidated above the initial Fibonacci 23.6% correction level of 41. At the moment, the upward dynamics seem unlikely since technical indicators confirm the increased activity of the "bears": fast EMAs on the Alligator indicator crossed the signal line downwards, and the AO oscillator histogram consolidated below the transition level, continuing to form downward bars.

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The stock markets of the EU countries continue to trade in a local downtrend against the background of the reduction by the World Bank of the world economic growth forecast for 2022 to 3.2%. The main reasons for the correction of the indicator are losses caused by the development of the military conflict in Ukraine, quarantine restrictions due to the spread of the coronavirus pandemic, as well as a significant increase in inflation. These factors can lead to an increase in the level of poverty in the world due to sudden spikes in prices for energy, fertilizers and food, and the policy of adjusting interest rates is likely to exacerbate the inequality of residents of different territories. The previous forecast for global GDP growth was 4.1%, but due to the situation in Ukraine, it was also lowered. Meanwhile, the estimated global economy in 2021 grew by 5.5%, showing the highest post-recession pace in 80 years.

At the moment, the situation in the German domestic bond market is coming to the fore again, where growth continues. Thus, 10-year debt stocks reached a yield of 0.9240%, despite the fact that at the beginning of the month it was only 0.5170%. In turn, the yield of conservative 20-year bonds exceeded the 1% mark for the first time since 2018, and is now at 1.014%, having risen from 0.556% at the beginning of the month.

On the global chart of the asset, the price is trading as part of a correction to the previous decline. Technical indicators are reversing again, and are ready to issue a signal to start purchases: the range of EMA fluctuations on the alligator indicator is actively narrowing, and the histogram of the AO oscillator has moved into the buying zone, forming the first ascending bar.

Support levels: 13883, 12600 | Resistance levels: 14550, 15420

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On the daily chart, the first wave of the higher level (1) of C formed, and a correction developed as the second wave (2) of C. Now, the wave C of (2) has formed and the development of the wave (3) has started, within which the first wave of the lower level 1 of (3) is forming. 

If the assumption is correct, the price will grow to the levels of 242.7 - 260. In this scenario, critical stop loss level is 173.09.